TIDMFAIR TIDMTTM TIDMFA14
RNS Number : 6622S
Fair Oaks Income Limited
13 March 2019
Fair Oaks Income Limited
13 March 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)
FINAL REDEMPTION OF 2014 SHARES
Further to the Company's announcement on 14 December 2018
stating the Board's consideration of an early redemption of the
2014 Shares, the Company today declares a final compulsory
redemption of all 2014 Shares (the "Final Redemption") at a price
equal to the NAV per 2014 Share as at 28 February 2019 less the
dividend to be declared for the month ended 28 February 2019 (the
"Redemption Price").
The consideration for the redemption will be, as default, a US
Dollar cash payment. This cash payment will be funded by FOMC II LP
(the master fund of the 2017 Share class, the "2017 Master Fund")
acquiring at NAV the residual interest in FOIF LP (the master fund
of the 2014 Share class, the "2014 Master Fund") owned by the
Company in respect of 2014 Share class.
The 2017 Master Fund's purchase of the residual interest in the
2014 Master Fund supplements its existing interest, which has been
a successful investment held since the launch of the 2017 Share
class.
Currency election
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 shortly, which is also available on the
Company's website at http://www.fairoaksincome.com. Election forms
must be returned to the Registrar by close of business on 1 April
2019.
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 of 1 April 2019 requesting that the election be removed
and that you wish to receive payment in US Dollars.
In specie election
There will also be an option to receive an in specie
distribution of a 2014 Shareholder's pro rata exposure to the
Company's interest in the Master Fund.
This option will be available only to institutional and
professionally advised private investors eligible to subscribe for
limited partnership interests in the Master Fund and is subject to
(i) completion of the required know-your-client checks; (ii) the
Company being satisfied in its absolute discretion that the
election does not constitute a breach of any relevant securities
legislation; and (ii) the signing by the investor of a transfer and
adherence agreement in respect of the Master Fund.
2014 Shareholders can elect for the in specie option by
completing an election form which is available on request from
Praxis Fund Services Limited by emailing
ben.leprevost@praxisifm.com. Election forms must be returned to the
same email address by close of business on 1 April 2019.
2014 Shareholders considering an in specie election should
carefully consider the appropriateness of an investment in the
Master Fund, which is a private limited partnership with key
features differing significantly from those of the Company. The
Master Fund has a fixed life of five years ended on 12 June 2019
which may be extended for up to two additional consecutive one-year
periods at the discretion of the Master Fund's general partner,
which is actively considering this option. Before making any
investment decision, 2014 Shareholders are recommended to seek
advice from an authorised independent financial adviser.
A 2014 Shareholder of approximately 70% of the issued 2014
Shares has signed an irrevocable undertaking to elect for the in
specie distribution and the Company's implementation of the Final
Redemption is conditional on completion of this election.
Further details
The Redemption Price in US Dollars is expected to be announced
on 15 March 2019 and in Sterling on 5 April 2019.
All holdings of 2014 Shares on the register at the close of
business on the record date, being 1 April 2019, will be
redeemed.
CREST shareholders must elect via the election form(s).
As at today's date, the Company has 21,942,137 2014 Shares in
issue of which none are held in treasury. 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.
Expected timetable
Posting of redemption notice 15 March 2019
Redemption Price announced 15 March 2019
Record date, Redemption date 1 April 2019
Shares disabled in CREST 1 April 2019 at 5pm
LSE quote cancelled 2 April 2019 at 8am
Sterling alternative announced 5 April 2019
Redemption monies paid 15 April 2019
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
LEI: 2138008KETEC1WM5YP90
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.
Following the Final Redemption the investment policy of the
Company will be to invest (either directly and/or indirectly
through the 2017 Master Fund) 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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