Fair Oaks Inc Regulatory News (FAIR)

Fair Oaks Income Limited

15 December 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)

PORTFOLIO UPDATE

Fair Oaks Income Limited (the "Company") is pleased to announce that FOMC II LP ("Master Fund II") has entered into binding contracts to acquire, in the primary market, $39.875 million notional of equity notes, representing 76% of the total equity of Allegro VI CLO, a new CLO backed by a portfolio of US broadly syndicated, secured loans.

The manager of this CLO's portfolio is AXA Investment Managers, Inc., a member of the Axa Group. The Axa Group is one of the largest global investment managers with over $1.27 trillion in assets under management.

This CLO's current target portfolio has a principal value of $500 million across an expected 161 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.6%.

The potential total return for this investment as estimated by the general partner of Master Fund II is between 16% and 17% per annum (see Note 1).

Master Fund II has also committed $35 million to a warehouse facility to support the purchase of loans prior to pricing a new CLO backed by a portfolio of US broadly syndicated, secured loans. More details of this investment will be communicated in due course. Pricing is expected in late 1Q 2018.

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.