GLI Finance Limited
Disposal of CLO investments
12 June 2014
GLI Finance Limited ("GLIF" or the "Company"), a specialist provider of finance to small and medium sized enterprises, refers to the announcement released today by Fair Oaks Income Fund Limited ("FOIF") in relation to the result of its Placing and Offer for Subscription, its admission to trading on the LSE Specialist Fund Market and the acquisition of two CLO investments from GLIF, referred to as the Initial Portfolio.
On 19 May 2014, GLIF announced the intention of FOIF to purchase GLIF's two remaining CLO investments for approximately $55 million. The CLO investments were revalued as at 3 June 2014 at a value of $54,723,772 and following completion of FOIF's fundraising and admission to trading, expected at 8.00am on 12 June 2014, GLIF has transferred the CLO investments to FOIF in consideration for a cash element of approximately $20.4 million and an issue of 34,298,425 shares in FOIF at the Issue Price of $1.00, subject to a two year lock-in agreement.
In the financial statements for the year ended 31 December 2013, interest income and dividend revenue relating to the CLO investments amounted to £9.6 million.
Monies from the exit of the CLO investments will be deployed into GLIF's underlying SME finance assets. GLIF's current portfolio of interests in ten SME finance platforms will form the core of the Company's future business. GLIF continues to focus on smaller companies' finance assets which are capable of generating a target return of 10-15%.
Geoff Miller CEO of GLI Finance, said: "We are pleased to conclude the successful disposal of these investments and look forward to achieving further progress during the rest of 2014."
For further information, please contact:
Geoffrey Miller
GLI Finance Limited
+1 203 916 0003
+44 7408 830719
Panmure Gordon
Dominic Morley
+44 (0)20 7886 2500
Joanne Lake
+44 (0)113 357 1151
Ed Berry/Jack Hickey
FTI Consulting
+44 (0)203 727 1046 / 1246
About GLI Finance
GLI Finance is a specialist provider of finance to small and medium sized enterprises and is quoted on AIM. GLIF both invests in loans to SMEs and originates finance for SMEs through a variety of finance platforms.