Carador Income Fund (CIFU) and Blackstone/GSO Loan Financing (BGLF) have announced that the rollover of CIFU shares into new BGLF C shares has been delayed because the anti-money laundering (AML) checks have not been completed in time. The companies say that this is “partly due to seasonal factors”. As a consequence, the capital reorganisation has been delayed and the new BGLF c shares are now expected to be admitted to trading on the LSE on Monday 7 January 2019.
Background to the rollover opportunity
Following a strategic review, the board of CIFU announced on 28 August 2018 that it had evaluated the results of a shareholder consultation, which included significant variation in feedback without a dominant view, and determined to offer shareholders the opportunity to vote on an orderly wind-down of the Company, alongside a rollover opportunity for those who wish to retain an investment in the CLO asset class.
The rollover opportunity
Shareholders in CIFU were offered the opportunity (subject to the necessary resolutions being approved by both sets of shareholders) to rollover their investment in the Company into an investment in Blackstone / GSO Loan Financing Limited (BGLF). BGLF is an internally-managed investment fund that invests in floating rate senior secured loans directly and indirectly through CLO Securities. Resolutions approving the managed wind -down and approving the rollover opportunity were subsequently passed.
About Blackstone / GSO Loan Financing
Blackstone/GSO Loan Financing ‘s investment objective is to provide shareholders with stable and growing income returns and to grow the capital value of the investment portfolio by exposure predominantly to floating rate senior secured loans directly and indirectly through collateralized loan obligation securities and investments in loan warehouses. It invests through Blackstone / GSO Corporate Funding Limited, in a portfolio of assets comprising predominantly of European senior secured loans and the most subordinated tranches of debt issued by collateralised loan obligations (“CLOs”, such tranches being “CLO Income Notes”) issued by CLOs that are managed by Blackstone / GSO Debt Funds Management Europe Limited.