TwentyFour Income Fund has announced a placing, offer for subscription, open offer and placing programme of new ordinary shares and an opportunity for shareholders to elect to realise some or all of their investment in the Company. A prospectus has been published providing details of the issue.
TwentyFour Income Fund Limited was launched on 6 March 2013 with an investment objective of generating attractive, risk-adjusted returns, principally through income distributions, by investing in a diversified portfolio of UK and European Asset Backed Securities. Its articles at launch made provision for a realisation opportunity with effect on the Company’s third anniversary.
The company says that the issue is intended to raise additional capital in part to enable the Company to redeem the shareholdings of Shareholders who wish to realise some or all of their ordinary shares through a realisation sale election. Proceeds of the issue raised in excess of the amount required to redeem the shareholdings of shareholders who wish to realise some or all of their ordinary shares, will be used for investment in accordance with the Company’s investment policy. The issue price and results of the issue announced are expected to be announced by close of business on 4 March 2016 with new ordinary shares admitted to trading on 8 March 2016.
The Company says that it believes that UK and European ABS continue to offer attractive risk-adjusted returns. Recent sentiment across fixed income has been affected by a number of negative events including the material correction in oil and other commodity prices and the moves in the Chinese currency. They say that this has led to more attractive yields in the European ABS market as prices have been supressed by a lower risk tolerance. In addition, specific events in some parts of the European ABS market (over supply of UK RMBS, volatility in Portuguese fixed income) have created further value in their view.
TwentyFour Income announces fundraising and redemption opportunity : TFIF