GLI Finance has announced that it will sell its remaining two CLO investments to Fair Oaks Income Fund (a new fund that intends to seek admission to trading on the Specialist Funds Market). The valuation that the two parties have agreed for these assets is $55m. GLI Finance will get a mixture of cash and shares in Fair Oaks Income Fund. The shares in Fair Oaks will be subject to a two year lock-in agreement. The deal is conditional on Fair Oaks achieving its minimum fund raise and on Fair Oaks being admitted to trading. The target date for this is 12 June 2014.
GLI Finance will redeploy the proceeds of the sale into the remainder of its business (focused on lending to small and medium enterprises).
James Carthew, who wrote this post, is a director of GLI Finance