Agreement to Dispose of CLO investments

RNS Number : 4058H

GLI Finance Limited

19 May 2014

 

GLI Finance Limited

19 May 2014

Agreement to Dispose of CLO investments

GLI Finance Limited ("GLIF" or the "Company"), a specialist provider of finance to small and medium sized enterprises, refers to the announcement released today by Fair Oaks Income Fund Limited ("FOIF") of its intention to seek admission to trading on the LSE Specialist Fund Market and publication of prospectus and acquisition of two CLO investments from GLIF.

In GLIF's full year results announcement released on 26 March 2014, the Board stated its intention to exit the Company's CLO investments over time. 

The Board is pleased to announce that FOIF has agreed to acquire from GLIF, its remaining two CLO investments with a valuation as at 8 May 2014 of approximately $55 million, which will be transferred by GLIF in consideration for a cash element and an issue of shares in FOIF, subject to a two year lock-in agreement.  In the financial statements for the year ended 31 December 2013, interest income and dividend revenue relating to the CLO portfolios amounted to £11.3 million.

The disposal of the CLO investments is conditional on FOIF achieving its minimum fundraise and the admission to trading of FOIF on the Specialist Fund Market of the London Stock Exchange, expected to take place on 12 June 2014.

Monies from the exit of the CLO portfolios will be deployed into GLIF's underlying SME finance assets.  GLIF's current portfolio of interests in ten SME finance platforms will form the core of the Company's future business.  GLIF continues to focus on smaller companies' finance assets capable of generating a target return of 10-15%.

The Company will update shareholders as appropriate.

For further information, please contact:

Geoffrey Miller

GLI Finance Limited

[phone]

[phone]

Panmure Gordon

Dominic Morley

[phone]

Joanne Lake

[phone]

Ed Berry/Jack Hickey

FTI Consulting

[phone] / 1246

 

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