17th Sep 2015 08:19
LONDON (Alliance News) - Fair Oaks Income Fund Ltd Thursday said that Fair Oaks Income Fund LP has entered into binding contracts to acquire USD26 million in equity notes, representing 68.5% of the total equity of Ares XXXV CLO.
The closed-ended investment company said that Ares XXXV is a new collateralized loan obligation vehicle backed by a portfolio of US broadly syndicated, secured loans, and is managed by Ares Management, an alternative asset manager with USD88 billion in assets under management.
The CLO's current target portfolio has a principal value of USD400 million across an expected 177 unique bank loan issuers, with an expected weighted average exposure per issuer of approximately 0.8%, Fair Oaks said.
The potential total return for this investment is estimated to be between 15% and 16% per year, Fair Oaks added.
Shares in Fair Oaks were untraded on Thursday, last quoted at 1.01 pence.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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