28th Aug 2018 15:14
LONDON (Alliance News) - Blackstone/GSO Loan Financing Ltd said Tuesday it is proposing to offer Carador Income Fund PLC shareholders a chance to roll over their shareholding.
A number of Carador shareholders have requested the return of their capital, prompting Carador to offer a vote as to whether the company should be wound down. This decision prompted Blackstone to offer Carador's shareholders the chance to roll over their holding.
Both Blackstone and Carador are collateralized loan obligation investors with similar portfolios. Moreover, Ireland-based Carador is managed by GSO/Blackstone Debt Funds Management LLC, which is the investment advisor to collateralized loan obligations in Blackstone's portfolio.
Carador shareholders who take up the offer will be given newly-issued C shares in consideration for the transfer of a pool of collateralized loan obligations from Carador to Blackstone.
"The enlargement of the Blackstone's portfolio potentially increases the fund's asset diversification and spreads fixed costs over a larger pool of assets, decreasing the total expense ratio," said Blackstone.
"The board of Blackstone, recognising the benefits for its own shareholders, supports such a proposal and is liaising with its professional advisers to determine the most practicable method of implementing it. A further announcement will be made in due course," the company added.
Shares in Blackstone/GSO Loan Financing were down 1.2% at EUR0.86 on Tuesday. Meanwhile, shares in Carador were up 3.0% at USD0.68.
Related Shares:
Blackstone LoanCIFU.L