CIFU.L Regulatory News (CIFU)

RNS Announcement

Carador Income Fund plc

15 November 2012

Interim Management Statement

NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

Carador Income Fund Plc ("Carador" or the "Company"), a listed investment company investing in debt securities of companies through collateralized loan obligations, today publishes its interim management statement for the period from 1 July 2012 to 14 November 2012.

Financial highlights:

- Close of US$125 million new U.S. Dollar C Share issue on 26 July 2012.

- NAV per U.S. Dollar Share of US$1.029 per share, as at 30 September 2012, an increase of 15.5% since 1 July 2012.

- NAV per U.S. Dollar C Share of US$0.9869 per share, as at 30 September 2012, an increase of 0.7% since the launch of the U.S. Dollar C Shares on 26 July 2012.

- At 14 November the U.S. Dollar Shares traded at US$1.0712, a 4.1% premium to the September NAV.

- At 14 November the U.S. Dollar C Shares traded at US$1.020, a 3.4% premium to the September NAV.

- A historic dividend yield of 12.8% for the U.S. Dollar Shares, as at 14 November 2012.

- 3Q dividend for the U.S. Dollar Shares of US$0.038 per share, up from US$0.034 per share for 2Q.

Portfolio Highlights:

- Full investment of the U.S. Dollar C Share net proceeds by 30 October.

- The portfolio remains 100% invested in US CLOs.

- The portfolio has been actively managed throughout the reporting period.

- As at 30 September the U.S. Dollar Share portfolio held approximately 60% of its exposure in Income Notes and 36% in the Mezzanine and Senior Notes issued by CLOs. The remaining 4% was held in cash.

Click on, or paste the following link into your web browser, to view the associated PDF document:

For further information, please contact:

Mark Moffat

GSO/Blackstone

+44 (0) 20 7104 4668

Ed Gascoigne Pees

FTI Consulting

+44 (0) 20 7269 7132

Important Information

Any reference herein to future returns or distributions is a target and not a forecast and there can be no guarantee or assurance that it will be achieved. The actual principal and income in any particular case will be determined by the cash flows received.

This document is issued and has been approved for the purposes of Section 21 Financial Services and Market Act 2000 ("FSMA") by the Manager, which is authorised and regulated by the Financial Services Authority in the United Kingdom. It does not constitute an invitation and should not be taken as an inducement to engage in any investment activity and is for the purpose of providing information about the Manager and certain Manager's Affiliates only. It may not be relied upon and should not be used for the purpose of making any investment decision. This document and the information contained herein is not for release, publication or distribution (directly or indirectly) in or into the United States, Canada, Australia or Japan or to any "US person" as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act") or into any other jurisdiction where applicable laws prohibit its release, distribution or publication. It does not constitute or contain an offer of, or the solicitation of an offer to buy or subscribe for, securities for sale anywhere in the world, including in or into the United States, Canada, Australia or Japan. This document is being furnished to you solely for your information and no recipient may forward, reproduce, distribute, or make available in whole or in part, this document (directly or indirectly) to any other person. The distribution of this document in certain jurisdictions may be restricted by law and recipients of this document should inform themselves about and observe any such restrictions and other applicable legal requirements in their jurisdictions. Accordingly, recipients represent that they are able to receive this document without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business. By accepting this document, you agree to be bound by the foregoing limitations.

This document has been prepared by Carador Income Fund PLC ("Carador") and is the sole responsibility of Carador. No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this document is accepted and no representation, warranty or undertaking, express or implied, is or will be made by Carador, GSO Capital Partners International LLP ("GSOCPI") or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of GSOCPI nor any of its respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to Carador or as to the truth, accuracy or completeness of this document, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this document and nothing in this document is or should be relied on as a promise or representation as to the future.

Although the portfolio reflected in this document (the "Portfolio") is consistent with the investment strategy of the Company, there is no guarantee that the portfolio acquired will be identical to the make-up of the Portfolio. Moreover, the future investments to be made by the Company may differ substantially from the investments included in the Portfolio. Therefore, the Portfolio parameters, industry concentration, rating concentration, spread distribution and other factors related to the Portfolio could all be materially different than those of the future portfolio acquired by the Company.

New U.S. federal regulations promulgated under Dodd-Frank have imposed additional regulatory requirements on funds managed by the Manager and its Affiliates. The Manager and its Affiliates have been vigilant in staying ahead of these new regulatory initiatives and implementing the necessary policies and infrastructure to ensure compliance therewith. The Manager and its Affiliates have commenced the process of filing Form PF for all of their funds and determining the effect of new regulations surrounding trading of commodities and financial futures and options imposed by the U.S. Commodity Futures Trading Commission (CFTC) on their funds. While administratively burdensome, none of these requirements will adversely impact their businesses and the costs of compliance which are borne by the funds are immaterial.

Carador has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and investors will not be entitled to the benefits of that Act. The securities described in this document have not been and will not be registered under the Securities Act, or the laws of any state of the United States. Consequently, such securities may not be offered, sold or otherwise transferred within the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, applicable state laws and under circumstances which will not require Carador to register under the Investment Company Act. No public offering of the securities is being made in the United States. If you are in the United States and are not either (a) a "qualified institutional buyer" (as defined in Rule 144a under the Securities Act) who is also a "qualified purchaser" (as defined in Section 2(a)(51) of the Investment Company Act) for purposes of Section 3(c)(7) of the Investment Company Act; or (b) an "accredited investor" (as defined in Rule 501 of the Securities Act) who is either a qualified purchaser or an eligible Investment Company Act investor, you should not open this document and should destroy it.