Issue of Equity

RNS Number : 4972M

Fair Oaks Income Fund Limited

07 May 2015

 



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, TO US PERSONS OR IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF SOUTH AFRICA, THE REPUBLIC OF IRELAND, JAPAN OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any shares in Fair Oaks Income Fund Limited or securities in any other entity, in any jurisdiction, including the United States, nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities.

7 May 2015

FAIR OAKS INCOME FUND LIMITED

Following the announcement of a proposed issue of equity (the "Issue") on 5 May 2015, the Board of Fair Oaks Income Fund Limited (the "Company") is pleased to announce the Issue has raised approximately US$44.5 million (before costs and expenses) through the issue of 45,000,000 new ordinary shares ("New Shares") at an issue price of US$0.9895.

Admission of the New Shares is scheduled for 11 May 2015 and an application has been made to the London Stock Exchange for the New Shares to be admitted to trading on the Specialist Fund Market.

As a result of the Issue, the Company's issued share capital will consist of 211,898,362 ordinary shares.

Further Information

Fair Oaks Income Fund Limited

Email: [e-mail]

Web: www.fairoaksincomefund.com

Fair Oaks Capital Limited

Miguel Ramos Fuentenebro

Tel. [phone]

Email: [e-mail]

Numis Securities Limited

Tel. [phone]

Nathan Brown (Corporate Broking)

Camarco

Tel. [phone]

Edward Gascoigne-Pees

Hazel Stevenson

Fair Oaks Income Fund Limited

Fair Oaks Income Fund Limited (the "Company") is an authorised closed-ended investment company incorporated in Guernsey.  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 the Master Fund.

The investment objective of the Company is to generate attractive, risk-adjusted returns, principally through income distributions.  The Company announced on 16 January 2015 that (1) on the basis of income projections as at that date, the Board planned to declare eleven monthly dividends of a minimum of 0.7 US cents per share* and a larger twelfth interim dividend such that, in the opinion of the Directors, substantially all net income generated by the Company in 2015 is distributed to shareholders; and (2) the Company will continue to target an annual net total return of 12-14%* over the planned life of the Master Fund and it is expected that dividends will constitute the principal element of the return to the Company's shareholders.

*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.

Important Information

This announcement has been prepared by, and is the sole responsibility of, Fair Oaks Income Fund Limited.

Numis Securities Limited ("Numis") is acting only for the Company in connection with the matters described in this announcement and is not acting for or advising any other person, or treating any other person as its client, in relation thereto and will not be responsible for providing the regulatory protection afforded to clients of Numis or advice to any other person in relation to the matters contained herein.

 

END

 

 

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