Return of Capital

RNS Number : 0912P

Fair Oaks Income Fund Limited

15 November 2016

 

Fair Oaks Income Fund Limited

15 November 2016

FAIR OAKS INCOME FUND 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)

RETURN OF CAPITAL

Further to the announcement made on 4 July 2016 regarding the Company's intention to return capital to Shareholders, and in line with the approval then given by the Company's Shareholders to adopt the revised Articles of Incorporation to vary the existing rights of the Ordinary Shares (as described in the Circular dated 12 5 August 2016) the Company today announces that it will return $3,335,850 (equivalent to 1.061 cents per share) on 30 November 2016  (the "Redemption Date") by way of a compulsory partial redemption of shares (the "Second Redemption").

The Second Redemption will be effected at 97.10 cents, being the NAV per Ordinary Share as at 31 October 2016. The Redemption will be effected pro rata to holdings of Ordinary Shares on the register at the close of business on the Redemption Record Date, being 30 November 2016. As at today's date, the Company has  314,373,974 Ordinary Shares in issue of which none is held in treasury. On this basis 1.0928 per cent. of each registered shareholding would be redeemed on the Redemption Date.

Fractions of shares will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares.

The amount to be applied to the partial redemption of shares comprises monies from the Company's existing cash balances.

All shares that are redeemed will be cancelled with effect from the relevant Redemption Date. Accordingly, once redeemed, shares will be incapable of transfer.

The Shares will all be disabled in CREST after close of business on the Redemption Date and the existing ISIN number GG00BD5NCP31 (the "Old ISIN") will expire.

The new ISIN number GG00BYMJ6H15 (the "New ISIN") in respect of the remaining Shares which have not been redeemed will be enabled and available for transactions from and including 1 December 2016.

Up to and including the Redemption Date, Shares will be traded under the Old ISIN and as such, a purchaser of such Shares would have a market claim for a proportion of the redemption proceeds. CREST will automatically transform any open transactions as at the Redemption Date into the New ISIN.

The default payment will be US Dollars. However, redemption payments can also be paid in Sterling providing the relevant shareholder has registered to receive redemption payments in Sterling. This can be done by completing the election form being posted to all shareholders today, which is also available on the Company's website at http://www.fairoaksincomefund.com. Election forms must be returned to the Registrar by the redemption record date on 30 November 2016.An announcement will be made prior to the redemption monies being paid to confirm the rate per share to be used to pay shareholders.

Please note that if you have previously advised the Registrar, Capita Asset Services, that you wish to receive your dividends in sterling, you will need to advise them separately if you also wish to receive redemption payments in sterling. If, at the time of the first redemption payment, you instructed the Registrar, Capita Asset Services, that you wished to receive redemption payments in Sterling then you will not need to this again. However, if you now wish to revoke the sterling election you should write to the Registrar, Capita Asset Services prior to the redemption record date on 30 November 2016 requesting that the election be removed and that you wish to receive payment in US Dollars.

CREST shareholders must elect via the election form.

The Board anticipates that the Company will receive future distributions from the Master Fund such that further share redemptions may be declared on a quarterly basis. However, shareholders should note that the Board retains absolute discretion as to the execution, pricing and timing of any returns of capital.

Expected timetable for redemption:

Posting of redemption notice                                                                                           15 November 2016

Record Date, Redemption date and expiry of old ISIN number                                 30 November2016

New ISIN number enabled                                                                                                 1 December 2016

Redemption monies paid to uncertificated holdings and                                          14 December 2016

certificated holdings                                                                                                         

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

DDI: [phone]

Email: [e-mail] 

Fair Oaks Income Fund Limited

Fair Oaks Income Fund Limited is a registered closed-ended collective investment scheme 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 London Stock Exchange's Main Market) on 12 June 2014. The Company's ordinary shares have the TIDM: FAIR.

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").

Notes

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.

 

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