Last checked at 17 Sep 2018 07:00
Fair Oaks Income Limited
17 September 2018
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)
RETURN OF CAPITAL TO 2014 SHAREHOLDERS
The Company today announces that it will return $12,500,000 (equivalent to 31.778 cents per share) on 3 October 2018 (the "Redemption Date") by way of a compulsory partial redemption of 2014 Shares (the "Fifth Redemption").
The Fifth Redemption will be effected at 88.85 cents, being the NAV per 2014 Share as at 31 August 2018 (less the monthly interim dividend of 0.7 US cents declared on 6 September 2018). The Redemption will be effected pro rata to holdings of 2014 Shares on the register at the close of business on the Redemption Record Date, being 3 October 2018. As at today's date, the Company has 39,335,595 2014 Shares in issue of which none is held in treasury. On this basis approximately 35.7657 per cent. of each registered shareholding would be redeemed on the Redemption Date.
Fractions of shares will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares.
All shares that are redeemed will be cancelled with effect from the relevant Redemption Date. Accordingly, once redeemed, shares will be incapable of transfer.
The 2014 Shares will all be disabled in CREST after close of business on the Redemption Date and the existing ISIN number GG00BFMF9X35 (the "Old ISIN") will expire.
The new ISIN number GG00BGN97714 (the "New ISIN") in respect of the remaining 2014 Shares which have not been redeemed will be enabled and available for transactions from and including 4 October 2018.
Up to and including the Redemption Date, 2014 Shares will be traded under the Old ISIN and as such, a purchaser of such 2014 Shares would have a market claim for a proportion of the redemption proceeds. CREST will automatically transform any open transactions as at the Redemption Date into the New ISIN.
The default payment will be US Dollars. However, redemption payments can also be paid in Sterling providing the relevant shareholder has registered to receive redemption payments in Sterling. This can be done by completing the election form being posted to all shareholders today, which is also available on the Company's website at http://www.fairoaksincomefund.com. Election forms must be returned to the Registrar by close of business on 3 October 2018. An announcement will be made prior to the redemption monies being paid to confirm the rate per share to be used to pay shareholders.
Please note that if you have previously advised the Registrar, Link Asset Services, that you wish to receive your dividends in sterling, you will need to advise them separately if you also wish to receive redemption payments in sterling. If, for previous redemption payments, you instructed the Registrar, Link Asset Services, that you wished to receive redemption payments in Sterling then you will not need to repeat this instruction. However, if you now wish to revoke the sterling election you should write to the Registrar, Link Asset Services prior to the redemption record date on 3 October 2018 requesting that the election be removed and that you wish to receive payment in US Dollars.
CREST shareholders must elect via the election form.
The Board anticipates that the Company will receive future distributions from the Master Fund such that further share redemptions may be declared on a quarterly basis. However, shareholders should note that the Board retains absolute discretion as to the execution, pricing and timing of any returns of capital.
Expected timetable for redemption:
Posting of redemption notice 18 September 2018
Record Date, Redemption date and expiry of old ISIN number 3 October 2018
New ISIN number enabled 4 October 2018
Redemption monies paid to uncertificated holdings and 17 October 2018
certificated holdings
LEI: 2138008KETEC1WM5YP90
Enquiries:
Fair Oaks Income Limited
Email: contact@fairoaksincome.com
Web: www.fairoaksincomefund.com
Link Asset Services
Company Registrar
DDI: +44 (0) 371 664 0321
Web: www.Signalshares.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 and Advisory
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 FOIF LP (the "Master Fund") and/or FOMC II LP ("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.