Fair Oaks Income Limited Portfolio Update (0846E)

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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: [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.

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July 05, 2021 02:00 ET (06:00 GMT)