Fair Oaks Inc Regulatory News (FAIR)

The following amendment has been made to the Portfolio Update announcement released on 7 June 2019 at 14:29 under RNS number 5672B.

Inclusion of Note 1.

The full amended text is shown below.

Fair Oaks Income Limited

7 June 2019

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, €27 million notional of equity notes in Fair Oaks Loan Funding I, a new CLO backed by a portfolio of European broadly syndicated secured loans.

The manager of this CLO's portfolio is Fair Oaks Capital Limited, the investment advisor to the Company and Master Fund II.

This CLO's current target portfolio has a principal value of €325 million across an expected 133 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.62%.

The potential total return for this investment, as estimated by the general partner of Master Fund II, is between 14% and 15% per annum (see Note 1).

In the same week, two existing investments were refinanced. Master Fund I refinanced the liabilities of Elevation CLO 2015-4 (formerly called Arrowpoint CLO 2015-4), reducing its weighted average cost of funding by 0.66%. Cycad Investments LP (in which Master Fund II is invested) refinanced the liabilities of Elm CLO 2014-1, reducing its weighted average cost of funding by 0.47%.

LEI: 2138008KETEC1WM5YP90

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 

Notes:

1) The General Partner's estimate of the potential total return for this investment is calculated across certain scenarios and subject to certain assumptions. The estimated potential return includes the expected impact of hedging the investment to USD and the waiver of investment management fees at Master Fund II on the amount invested. 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.

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 FOMC II LP) 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.