Fair Oaks Income Ltd Regulatory News (FA14)

Fair Oaks Income Limited

26 September 2017

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)

POTENTIAL SHARE ISSUE

Fair Oaks Income Limited (the "Company") announces that new 2017 Shares ("New Shares") are being made available under the placing programme established in the Company's prospectus dated 6 March 2017. 

The proceeds of this placing are intended to be used as funding for a newly originated opportunity to make a primary investment of between $21m to $35m in a CLO equity security. The potential total return for this investment as estimated by the general partner of Master Fund II is between 15% and 17% per annum (see Note 1), supported by an expected 200+ unique bank loan issuers and attractive debt funding. 

The issue price per New Share is expected to be $1.00, which represents a premium of approximately 2.0% to the NAV per 2017 Share as at 31 August 2017 (less the monthly interim dividend of 0.7 US cents declared on 25 August 2017 which will not be payable on the New Shares).  

The Issue is available to Qualified Investors, who are invited to apply for New Shares through the Company's corporate broker, Numis, on the contact details below. The Issue is expected to close at 17:00 on 28 September 2017, with admission of the New Shares scheduled on 2 October 2017. 

The closing date and the size of the Issue, and the decision to allot New Shares to any Qualified Investor, will be determined at the absolute discretion of the Company and Numis. Application will be made to the London Stock Exchange for the New Shares to be admitted to trading on the Specialist Fund Segment of the Main Market.

Enquiries:

Fair Oaks Income Limited

Email: contact@fairoaksincome.com

Web: www.fairoaksincome.com

Fair Oaks Capital Limited

Investor Relations

DDI: +44 (0) 20 3034 0400

Email: ir@fairoakscap.com

Praxis Fund Services Limited

Ben Le Prevost

DDI: +44 (0) 1481 755524

Email: Ben.LePrevost@praxisifm.com

Numis Securities Limited

Nathan Brown, Corporate Broking

DDI: +44 (0) 20 7260 1426

Email: n.brown@numis.com 

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 the Master Fund and/or 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.

Notes

1) The General Partner's estimate of the potential total return for this investment in calculated across certain scenarios and subject to certain assumptions. This and any other references herein to potential future returns or distributions are targets and not forecasts and there can be no guarantee or assurance that they will be achieved.

This document is for information purposes only and is not an offer to invest. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.