End of Master Fund Commitment Period

RNS Number : 0649D

Fair Oaks Income Fund Limited

04 July 2016

 

4 July 2016

FAIR OAKS INCOME FUND 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)

END OF MASTER FUND COMMITMENT PERIOD

The Commitment Period of the Master Fund in which Fair Oaks Income Fund Limited (the "Company") is invested ended on 12 June 2016. Accordingly the Company announces the following:

Distribution Policy

The Board intends to continue to pay eleven monthly dividends of 0.7 US cents per share* and a twelfth interim dividend representing an amount in aggregate at least equal to the gross income received by the Company from investments in the relevant financial year that are attributable to the Company's investment in the Master Fund, less expenses of the Company.

For these purposes, the Company will continue to recognise income using the effective interest method. This method is intended to result in repayments of principal by the underlying instruments to the Master Fund being classified as capital by the Company, with all other cash flows being classified as income.

Share Buybacks

To the extent that the Company receives distributions of realised capital from the Master Fund, the Board will give consideration to using such capital to repurchase Shares. The Company's discount management policy states that Share repurchases will be considered in the event that the Shares are trading at a price representing a discount to the prevailing Net Asset Value per Share of 5% or more, but the Board reserves the right to repurchase Shares at any discount level that it considers to be enhancing to the NAV per remaining Share.

The Board currently has authority to repurchase Shares representing 14.99% of the Shares in issue and intends to seek to renew this authority at each annual general meeting of the Company going forward.

The Board retains absolute discretion as to the execution, pricing and timing of any repurchases of Shares.

Returns of Capital

To the extent that the Company holds surplus realised capital following distributions from the Master Fund and any Share repurchases, the Company intends to return such capital to Shareholders on a timely basis and in a cost and tax efficient manner.

It is expected that the Board will be required to convene a general meeting of the Company in order to seek Shareholder approval for the mechanism(s) to be adopted. The Board has instructed the Company's advisers to finalise the proposals as soon as practicable and it is expected the Company will be in a position to commence capital distributions before the end of the third quarter of 2016.

The Board retains absolute discretion as to the execution, pricing and timing of any returns of capital.

Enquiries

Fair Oaks Income Fund Limited

Email: [e-mail]

Web: www.fairoaksincomefund.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 and Advisory

DDI: [phone]

Email: [e-mail] 

Notes

Fair Oaks Income Fund Limited is registered as a Registered Closed-ended Collective Investment Scheme with the Guernsey Financial Services Commission. The Company was admitted to trading on the Specialist Fund Market of the London Stock Exchange on 12 June 2014. The Company's ordinary shares have the TIDM: FAIR and ISIN: GG00BMBN1D14.

The investment policy of the Company is to seek exposure to 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 investing in FOIF LP (the "Master Fund").

*This is a target only and not a profit forecast. There can be no assurance that this target will be met or that the Company will make any distributions at all. This target return should not be taken as an indication of the Company's expected or actual current or future results. The Company's actual return will depend upon a number of factors. Shareholders and potential investors should decide for themselves whether or not the return is reasonable and achievable.

Capitalised terms in this announcement are as defined in the Company's prospectus dated 3 August 2015.

 

END

 

 

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