Fair Oaks Income Limited Portfolio Update (9390Z)

TIDMFAIR TIDMFA17 TIDMTTM

RNS Number : 9390Z

Fair Oaks Income Limited

27 May 2021

27 May 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 entered into binding contracts to acquire, in the primary market, EUR27.2 million notional of equity notes in Allegro CLO XIII, a new CLO backed by a portfolio of US broadly-syndicated secured loans.

The manager of this CLO's portfolio is AXA Investment Managers, Inc.

This CLO's current target portfolio has a principal value of $500 million across an expected 297 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.37%.

The potential total return for this investment, as estimated by the general partner of Master Fund II is between 15% and 17% per annum (see Note 1).

In addition, Master Fund II has priced a reset of Fair Oaks Loan Funding II, a CLO backed by a portfolio of European broadly-syndicated secured loans. The original purchase of the equity in Fair Oaks Loan Funding II was completed in July 2020 with a low-levered structure, a weighted average coupon for the CLO financing of Euribor + 2.41% and a one-year reinvestment period.

After the reset, Fair Oaks Loan Funding II will benefit from a weighted average coupon of Euribor + 1.68% and an additional 4.5-year investment period. Because BB and B rated notes are being added to the CLO structure, c.EUR19.5m of the initial EUR47.0m investment will be returned to Master Fund II when the reset closes in June.

The potential total return based on the current liquidation value of Fair Oaks Loan Funding II, as estimated by the general partner of Master Fund II, is 17% per annum (see Note 1).

LEI: 2138008KETEC1WM5YP90

Enquiries:

Fair Oaks Income Limited

Email: [e-mail]

Web: www.fairoaksincome.com

Fair Oaks Capital Limited

Investor Relations

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]

Liberum Capital Limited

Chris Clarke, Investment Banking

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 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

PFUBUGDUGBDDGBL

(END) Dow Jones Newswires

May 27, 2021 02:00 ET (06:00 GMT)