3rd Nov 2015 09:14
LONDON (Alliance News) - Fair Oaks Income Fund Ltd on Tuesday said that the master fund into which it invests, has agreed to acquire USD25.5 million notional of equity notes, representing 66% of the total equity, and USD10.0 million notional of Class F notes of Neuberger Berman CLO XX, a new CLO backed by a portfolio of US broadly syndicated, secured loans.
The manager of the CLO's portfolio is Neuberger Berman, an alternative asset manager with USD237.0 billion of assets under management.
The CLO's current target portfolio has a principal value of USD500 million across an expected 133 unique bank loan issuers, according to Fair Oaks Income Fund, with an expected weighted average exposure per issuer of approximately 1.01%.
The potential total return for this investment as estimated by the general partner of the master fund is between 15% and 16% per annum.
Shares in Fair Oaks Income Fund were up 0.1% at USD0.96048 on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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