Return of Capital to 2014 Shareholders REPLACEMENT

RNS Number : 2305S

Fair Oaks Income Limited

22 June 2018

 

Fair Oaks Income Limited

22 June 2018

FAIR OAKS INCOME 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 TO 2014 SHAREHOLDERS

The Company today announces that it will return $6,500,000 (equivalent to 13.978 cents per share) on 6 July 2018 (the "Redemption Date") by way of a compulsory partial redemption of 2014 Shares (the "Fourth Redemption").

The Fourth Redemption will be effected at 90.71 cents, being the NAV per 2014 Share as at 31 May 2018 (less the monthly interim dividend of 0.7 US cents declared on 5 June 2018). The Redemption will be effected pro rata to holdings of 2014 Shares on the register at the close of business on the Redemption Record Date, being 6 July 2018. As at today's date, the Company has 46,501,283 2014 Shares in issue of which none is held in treasury. On this basis 15.4097 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.

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 2014 Shares will all be disabled in CREST after close of business on the Redemption Date and the existing ISIN number GG00BF1Y5666 (the "Old ISIN") will expire.

The new ISIN number GG00BFMF9X35 (the "New ISIN") in respect of the remaining 2014 Shares which have not been redeemed will be enabled and available for transactions from and including 9 July 2018.

Up to and including the Redemption Date, 2014 Shares will be traded under the Old ISIN and as such, a purchaser of such 2014 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 6 July 2018. 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, Link 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, for previous redemption payments, you instructed the Registrar, Link Asset Services, that you wished to receive redemption payments in Sterling then you will not need to repeat this instruction. However, if you now wish to revoke the sterling election you should write to the Registrar, Link Asset Services prior to the redemption record date on 6 July 2018 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                                                                                           22 June 2018

Record Date, Redemption date and expiry of old ISIN number                                 6 July 2018

New ISIN number enabled                                                                                                 9 July 2018

Redemption monies paid to uncertificated holdings and                                          20 July 2018

certificated holdings                                                                                                         

LEI: 2138008KETEC1WM5YP90

Enquiries:

Fair Oaks Income Limited

Email: [e-mail]

Web: www.fairoaksincomefund.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 and Advisory

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 LP (the "Master Fund") and/or FOMC II LP ("Master Fund II") 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. The Company will implement its investment policy by remaining invested in the Master Fund and making new investments in Master Fund II.

 

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