CIFU.L Regulatory News (CIFU)

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

This announcement does not constitute a prospectus or offering memorandum or an offer in respect of any securities and is not intended to provide the basis for any decision in respect of Carador or other evaluation of any securities of Carador or any other entity and should not be considered as a recommendation that any investor should subscribe for or purchase any such securities. Neither the issue of this announcement nor any part of its contents constitutes an offer to sell or invitation to purchase any securities of Carador or any other entity or any persons holding securities of Carador.

Carador Income Fund plc

Publication of Prospectus

Carador Income Fund plc (the "Company" or "Carador") today announces that a prospectus in respect of a proposed placing of U.S. Dollar C Shares at U.S $1.00 per share and Euro C Shares at €1.00 per share each of no par value with total gross placing proceeds of up to US$150 million has been filed with and approved by the Central Bank of Ireland (the "Central Bank") as required by the Prospectus (Directive 2003/71/EC) Regulations 2005 ("Prospectus").

A copy of the Prospectus will shortly be available to view at the registered office of the Company at 78 Sir John Rogerson's Quay, Dublin 2, Ireland and at the following locations, subject to applicable law:

Arthur Cox

Earlsfort Centre

Earlsfort Terrace

Dublin 2

Ireland

Singer Capital Markets Limited

One Hanover Street

London

W1S 1YZ

UK

Dexion Capital plc

1 Tudor Street

London

EC4Y 0AH

Herbert Smith LLP

Exchange House

Primrose Street

London

EC2A 2HS

UK

A copy of the Prospectus will also be submitted to the National Storage Mechanism where it will shortly be available for viewing at www.hemscott.com/nsm.do.

In response to demand from investors and in light of the continued attractive investment environment in the collateralised loan market ("CLO"), the Directors believe that it is in the best interests of Shareholders and the Company to raise further monies by way of the Issue.

The Company's investment objective is to produce attractive and stable returns with low volatility compared to equity markets by investing in a diversified portfolio of Senior Notes of CLOs collateralised by senior secured Bank Loans and equity and mezzanine tranches of CLOs. The Company seeks to achieve its investment objective through investment in cashflow CLO transactions, managed by portfolio managers with proven track records. It seeks to achieve diversification across asset class, geography, manager, and maturity profile. Each investment is collateralised by a diverse pool of fixed income assets. There can be no guarantee that the Company's investment objective will be achieved.

Expected Timetable*:

* The dates and times specified above are subject to change without further notice. References to times are London times unless otherwise stated.

Terms used and not defined in this announcement will bear the meaning given in the Prospectus.

Enquiries:

Disclaimer

This announcement has been approved for issue in the United Kingdom for the purposes of section 21 of the UK Financial Services and Markets Act 2000 by GSO Capital Partners International LLP ("GSOCPI") which is authorised and regulated by the United Kingdom Financial Services Authority.

This announcement 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 "U.S. person" as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act") ("U.S. Person") or into any other jurisdiction where applicable laws prohibit its release, distribution or publication. It does not constitute an offer to sell or a solicitation of offers to buy securities anywhere in the world, including in or into the United States, Canada, Australia or Japan. No recipient may distribute, or make available, this announcement, directly or indirectly, to any other person. Recipients of this announcement in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of this announcement may in certain jurisdictions be restricted by law. Accordingly, recipients represent that they are able to receive this announcement without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business.

This announcement has been prepared by 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 announcement is accepted and no representation, warranty or undertaking, express or implied, is or will be made by Carador, GSOCPI, Singer Capital Markets Limited ("Singer"), Dexion Capital plc ("Dexion") 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, Singer, Dexion nor any of their 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 announcement, 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 announcement and nothing in this announcement is or should be relied on as a promise or representation as to the future.

This document is an advertisement and does not constitute a prospectus, offering memorandum, or offer or solicitation to any person in any jurisdiction to purchase or sell any investment. No information set out in or referred to in connection with these materials is intended to form the basis of any contract of sale, investment decision or any decision to purchase any securities, nor should such information be construed as providing financial, investment or other professional advice. These materials should not be considered by the recipient as a recommendation relating to the acquisition or disposal of investments. It is recommended that recipients of these materials seek their own independent legal, tax, financial and other advice. These materials do not contain sufficient information to support an investment decision and investors should ensure that they obtain all available relevant information before making any investment. Investment decisions should be based solely on the Prospectus and not on information contained in these materials. Copies of the prospectus may be obtained, subject to applicable law, for collection free of charge from the registered office of the Company. Copies of the prospectus will also be available, for inspection only, from the National Storage Mechanism at http://www.hemscott.com/nsm.do.

The merits or suitability of any securities must be independently determined by the recipient on the basis of its own investigation and evaluation of Carador. Any such determination should involve, among other things, an assessment of the legal, tax, accounting, regulatory, financial, credit and other related aspects of the securities. Recipients of this document are recommended to seek their own independent legal, tax, financial and other advice and should rely solely on their own judgement, review and analysis in evaluation Carador, its business and its affairs.

Carador 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 announcement have not been and will not be registered under the Securities Act, or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, such securities may not be offered, sold, resold or delivered, directly or indirectly,within the United States or to, or for the account or benefit of, U.S. Persons 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.

These materials may include statements that are, or may be deemed to be, "forward-looking statements". In some cases, such forward-looking statements can be identified by the use of forward-looking terminology, including the terms "targets", "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual performance, results of operations, internal rate of return, financial condition, liquidity, distributions to shareholders and the development of its financing strategies may differ materially from the impression created by any forward-looking statements contained in this document.

Prospective investors should take note that any securities may not be acquired by investors using assets of (a) an employee benefit plan (as defined in Section 3(3) of the U.S. Employee Retirement Security Act of 1974, as amended ("ERISA")) subject to Part 4 of Subtitle B of Title I of ERISA (a "Plan"); (b) a plan described in Section 4975(e)(1) of the U.S. Internal Revenue Code of 1986, as amended (the "Code") to which Section 4975 of the Code applies (also, a "Plan"); (c) any entity whose underlying assets include Plan assets by reason of a Plan's investment in such entity (together with Plans, a "Benefit Plan Investor"); or (d) any other employee benefit plan subject to any federal, state, local or other law or regulation that is substantially similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code (an "Other Plan"), or any entity that is acting on behalf of or using the assets of any Benefit Plan Investor or Other Plan with respect to the purchase, holding or disposition of any Shares.

Singer, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for Carador and no-one else in connection with the potential offering of securities by Carador (the "Offering") and is not advising any person or treating any person as its customer in relation to the Offering and will not be responsible to anyone other than Carador for providing the protections afforded to customers of Singer Capital Markets Limited or for providing advice in relation to the Offering.

Dexion, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for Carador and no-one else in connection with the Offering and is not advising any person or treating any person as its customer in relation to the Offering and will not be responsible to anyone other than Carador for providing the protections afforded to customers of Dexion Capital plc or for providing advice in relation to the Offering.

By reading this document you will be deemed to have represented, warranted and undertaken for the benefit of Singer and Dexion and others that (a) you are outside the United States and not a U.S. Person, (b) you have read and agree to comply with the contents of this notice, you will keep the information in this document and delivered in any accompanying document and all information about Carador confidential, and will not reproduce or distribute, directly or indirectly, any such information, and (c) you are permitted in accordance with applicable laws to receive such information.