19th May 2014 10:00
LONDON (Alliance News) - GLI Finance Ltd Monday said Fair Oaks Income Fund Ltd, which today announced its intention to float on the specialist fund market of the London Stock Exchange, has agreed to acquire its remaining collateralised loan obligation investments.
GLI's two remaining CLO investments were valued at about USD55.0 million on May 8. In 2013, interest income and dividends relating to the CLO portfolios amounted to GBP11.3 million.
GLI said the CLOs will be transferred for "a cash element" and an issue of shares in the fund, subject to a two year lock-in.
The CLO disposal is conditional on the fund achieving its minimum fundraising and being admitted to the specialist fund market, which is expected to occur on June 12.
GLI is disposing of its interests in CLOs as it focuses on partnering with alternative finance platforms in order to lend to small-and-medium-sized enterprises.
Fair Oaks Income Fund wants to raise up to USD200.0 million through a placing and offer for subscription. The fund is seeking to invest in 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.
Numis Securities Ltd is acting as sole bookrunner and broker in relation to the Fair Oaks issue.
GLI Finance shares were Monday quoted at 60.80 pence, up 1.3%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
GLIF.L