Fair Oaks Income Limited Portfolio Update (1811D)

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RNS Number : 1811D

Fair Oaks Income Limited

25 April 2017

Fair Oaks Income Limited

25 April 2017

FAIR OAKS INCOME LIMITED (the "Company")

(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 Limited (the "Company") is pleased to announce that Fair Oaks Master Credit Fund II LP ("Master Fund II") has entered into binding contracts to acquire, in the primary market, $27 million notional of equity notes, representing 75% of the total equity of AIMCO CLO Series 2017-A LLC, a new CLO backed by a portfolio of US broadly syndicated, secured loans.

The manager of this CLO's portfolio is AIMCO, a subsidiary of The Allstate Corporation ("Allstate"). Allstate is a listed, US based multi-line insurer group with over $86 billion worth of investment assets as of December 31, 2016, including approximately $11 billion of leveraged credit.

This CLO's current target portfolio has a principal value of $400 million across an expected 200+ unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.5%.

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).

This investment will be funded by a first draw-down from the C Share pool, following which the C Shares will have an interest in Master Fund II (with underlying exposure to 50 CLO securities and in excess of 900 unique underlying loans) and $43 million of committed but undrawn cash.

Enquiries:

Fair Oaks Income Limited

Email: [e-mail]

Web: www.fairoaksincome.com

Fair Oaks Capital Limited

Hayley Stewart

DDI: [phone]

Email: [e-mail]

Praxis Fund Services Limited

Ben Le Prevost

DDI: [phone]

Email: [e-mail]

Numis Securities Limited

Nathan Brown, Corporate Broking

DDI: [phone]

Email: [e-mail]

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 the Master Fund and/or Master Fund II) 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. The Company will implement its investment policy by remaining invested in the Master Fund and making new investments in Master Fund II.

Notes

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.

This document is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This information is provided by RNS

The company news service from the London Stock Exchange

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April 25, 2017 02:01 ET (06:01 GMT)