Fair Oaks Income (FAIR) announced the publication of a prospectus in relation to the reorganisation proposal and placing programme proposal.
The purpose of the proposed reorganisation is to allow those shareholders who wish to extend the life of their investment in FAIR past the planned end date of Master Fund II, to be able to do so by having their 2017 shares re-designated as 2021 shares, with such 2021 shares investing in a new master fund, Master Fund III, which will have a planned end date of 12 June 2028 and an investment objective and policy substantially similar to that of Master Fund II.
Those shareholders of FAIR who do not wish to extend the life of their investment to participate in Master Fund III will need to make an express election to have their existing 2017 Shares re-designated as realisation shares, which will continue to participate solely in Master Fund II.
FAIR’s chairman, Professor Claudio Albanese, noted: “The board is pleased to put forward the proposals, which facilitate an extension of shareholders’ investments through a new class of 2021 Shares deployed through the new Master Fund III, while also offering an option to elect for realisation shares and establishing a twelve-month placing programme.
Master Fund III is characterised by a fixed investment period and life, during which FAIR will continue to utilise its tactical approach to investing across the CLO capital structure, seeking to take advantage of well-defined investment opportunities in both control equity and secondary mezzanine securities.”
Potential placing
To the extent that shareholders wish to consider realising their investment in the company, rather than hold either realisation shares or 2021 shares, then FAIR has engaged its corporate brokers to seek to generate secondary market demand from shareholders or new investors willing to hold 2021 Shares.
About FAIR
FAIR aims to generate attractive, risk-adjusted returns, principally through income distributions. It 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 publishes prospectus on reorganisation and placing programme proposals