Fair Oaks Income Limited Portfolio Update (0846E)
05 July 2021 - 4:00PM
UK Regulatory
TIDMFAIR TIDMFA17 TIDMTTM
RNS Number : 0846E
Fair Oaks Income Limited
05 July 2021
5 July 2021
Fair Oaks Income Limited
(Incorporated in Guernsey under The Companies (Guernsey) Law,
2008, as amended, with registered number 58123 and registered as a
Registered Closed-ended Collective Investment Scheme with the
Guernsey Financial Services Commission)
Portfolio Update
Fair Oaks Income Fund Limited (the "Company") is pleased to
announce that FOIF II LP ("Master Fund II") has made two
investments in the majority equity of new US CLOs. These
investments reinvest the sale proceeds of CLO mezzanine debt which
was acquired opportunistically in the Spring of 2020.
Both new CLOs include ESG-related investment criteria. All CLO
equity investments (and resets) completed by Master Fund II since
May 2019 have been subject to similar criteria and, as of July
5(th) , 55% of CLO equity portfolio is now subject to ESG-related
restrictions.
Details of New Investments:
Master Fund II entered into a binding contract to acquire, in
the primary market, $24.5 million notional of equity notes in
Rockford Tower CLO 2021-2, a new CLO backed by a portfolio of US
broadly-syndicated secured loans.
The manager of the CLO's portfolio is Rockford Tower Capital
Management LLC, an affiliate of King Street Capital Management,
which is a global investment firm with over $18 billion assets
under management.
The Rockford Tower CLO 2021-2 target portfolio has a principal
value of $400 million across an expected 174 unique bank loan
issuers, with an expected weighted average exposure per issuer of
approximately 0.48%. The potential total return for the
investments, as estimated by the general partner of Master Fund II,
is between 15% and 17% per annum (see Note 1).
Master Fund II has also entered into a binding contract to
acquire, in the primary market, $29.0 million notional of equity
notes in Wellfleet CLO 2021-2, a new CLO backed by a portfolio of
US broadly-syndicated secured loans.
The manager of the CLO's portfolio is Wellfleet Credit Partners
LLC, the performing credit platform of Littlejohn & Co, an
equity and credit-focused investor with $12 billion of assets under
management.
The Wellfleet CLO 2021-2 target portfolio has a principal value
of $450 million across an expected 228 unique bank loan issuers,
with an expected weighted average exposure per issuer of
approximately 0.40%. The potential total return for this
investment, as estimated by the general partner of Master Fund II
is between 14% and 16% per annum (see Note 1).
LEI: 2138008KETEC1WM5YP90
Enquiries:
Fair Oaks Income Limited
Email: contact@fairoaksincome.com
Web: www.fairoaksincome.com
Fair Oaks Capital Limited
Investor Relations
DDI: +44 (0) 20 3034 0400
Email: ir@fairoakscap.com
Praxis Fund Services Limited
Ben Le Prevost
DDI: +44 (0) 1481 755524
Email: Ben.LePrevost@praxisifm.com
Numis Securities Limited
Nathan Brown, Corporate Broking
DDI: +44 (0) 20 7260 1426
Email: n.brown@numis.com
Liberum Capital Limited
Chris Clarke, Investment Banking
DDI: +44 (0) 20 3100 2190
Email: chris.clarke@liberum.com
Fair Oaks Income Limited
Fair Oaks Income Limited is a registered closed-ended investment
company incorporated in Guernsey. The Company was admitted to
trading on the Specialist Fund Market of the London Stock Exchange
(now the Specialist Fund Segment of the Main Market of the London
Stock Exchange) on 12 June 2014.
The investment policy of the Company is to invest (either
directly and/or indirectly through FOIF II LP and FOMC III LP) in
US and European CLOs or other vehicles and structures which provide
exposure to portfolios consisting primarily of US and European
floating-rate senior secured loans and which may include
non-recourse financing.
Note 1: The General Partner's estimate of the potential total
return for this investment in calculated across certain scenarios
and subject to certain assumptions. This and any other references
herein to potential future returns or distributions are targets and
not forecasts and there can be no guarantee or assurance that they
will be achieved.
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