Fair Oaks Income (FAIR) will resume the payment of dividends, on a quarterly basis and at a variable rate. The board’s decision has been made in light of the continued performance and the increased resilience of Master Fund II’s investments.
FAIR expects to announce the first quarterly dividend at the end of July in an amount of approximately 1.5 cents per share.
The Master Funds have proved resilient
FAIR notes that the Master Funds received distributions on all equity investments in April and, with all investments passing their over-collateralisation tests, distributions are also expected on all investments in July. Furthermore, the opportunistic investments made in the second quarter have resulted in the portfolio consisting of 48% CLO debt by market value. The company says that this increases the resilience and predictability of Master Fund II and the company’s cash flow.
The dividend had been suspended following a company announcement on 30 March.
About FAIR
FAIR seeks exposure to 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.
FAIR: Fair Oaks Income to bring back dividend