2 May 2017 07:00
RNS Announcement
Carador Income Fund plc (the "Company")
2 May 2017
Redemption Arrangements
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.
As announced on 30 November 2016, the Company's Articles of Association (the "Articles") contain certain provisions regarding redemption arrangements which may, in certain circumstances (including a discount trigger), be offered to shareholders in 2017.
In light of the price at which the Company's shares currently trade relative to the Company's net asset value ("NAV"), the Directors believe that it is unlikely that the discount trigger realisation mechanism set out in the Articles will be met.
However, the Directors intend to use the discretion provided to them in the Articles to put forward to shareholders proposals to approve a redemption opportunity for up to 100 per cent. of the shares in issue (the "Redemption Proposals") for any shareholders who may wish to exit their holding in the Company (in whole or in part).
Details of the Redemption Proposals will be published and sent to shareholders in due course. The Redemption Proposals, which are subject to receipt of any necessary regulatory clearances and there being no significant change in market conditions, will be tabled for consideration at the Company's annual general meeting which is expected to be held in late July 2017.
Redemption Mechanics
If the Redemption Proposals are approved by shareholders, in accordance with the Articles, the Directors will allocate to a repurchase pool (the "Repurchase Pool") assets of the Company with an aggregate value (as at the NAV calculation date immediately preceding the establishment of the Repurchase Pool) equal to the NAV (as at the same date) attributable to the shares to be redeemed, less any appropriate redemption costs. As the general pool of assets held in the Company's portfolio is likely to consist of cash as well as non-cash assets, the assets allocated to the Repurchase Pool would include a cash element as well as a share of the non-cash assets held. It is expected that non-cash assets would be realised in an orderly manner over a period of time and redemptions or repurchases of the relevant shares made as appropriate.
Enquiries:
Ciara Timon
State Street Fund Services (Ireland) Limited
Company Secretary
Tel: +353 1 776 6229