Eagle Growth and Income Opportunities Fund (the "Fund")
(
NYSE: EGIF) today announced several actions
related to previously-announced changes to the Fund's current
investment advisory and sub-advisory arrangements.
The Fund previously announced that the Fund's
Board of Trustees (the "Board") approved THL Credit Advisors LLC
("THL Credit") to serve as the investment adviser to the Fund,
replacing Four Wood Capital Advisors LLC ("FWCA"). The Board
also approved the retention of Eagle Asset Management, Inc.
("Eagle"), the Fund's current sub-adviser, under the supervision of
THL Credit. The changes will be effective August 31, 2019
(the "Effective Date"), when THL Credit and Eagle will commence
serving pursuant to interim advisory and sub-advisory agreements
that were approved by the Board on August 16, 2019.
Approval of New Investment Advisory
Agreement and New Sub-Advisory Agreement
In order to ensure the continued management of
the Fund's assets, the Board has considered and approved a new,
non-interim advisory agreement between the Fund and THL Credit (the
"New Advisory Agreement") and a new, non-interim sub-advisory
agreement between THL Credit and Eagle (the "New Sub-Advisory
Agreement"), each of which will be subject to approval by the
Fund's shareholders later this year. As previously announced,
the changes to the Fund's advisory arrangements are expected to
lower the Fund's overall expense ratio.
Changes to the Fund's Permitted
Investments
As previously announced, the changes to the
Fund's advisory arrangements are expected to enhance the Fund's
original investment strategy, which in part seeks current income
over the Fund's limited term. As of the Effective Date, THL Credit
will actively manage a portion of the Fund's assets allocated to
debt securities. The addition of THL Credit is intended to enhance
the breadth of capabilities in income-producing securities through
THL Credit's expertise in bank loans, high yield bonds and
structured credit investments. Accordingly, the Board has
considered and approved, effective as of the Effective Date,
certain changes to the Fund's permitted investments.
Specifically, the Board approved an increase in the percentage of
the Fund's Managed Assets (as defined below) that may be invested
in a combination of below investment grade securities and debt
instruments that generate payment-in-kind ("PIK") interest from 20%
to 30%. In addition, the Board approved collateralized loan
obligations ("CLOs") as permitted investments for the Fund.
THL Credit and Eagle expect this diversification of asset classes
to facilitate the Fund as a tactical allocation fund across both
equity and fixed income markets, as originally marketed to
investors, including through enhanced investment opportunities
across the fixed income spectrum. THL Credit and Eagle will
establish an allocation committee to regularly review the Fund's
tactical asset allocations among dividend or other income paying
equity securities and debt securities.
Officer Changes; Addition of New
Trustee
In connection with the new advisory relationship
with THL Credit, the Board has approved, effective as of the
Effective Date, replacing the Fund's current officers with
employees of THL Credit and Eagle. The Fund's Board also has
appointed Mr. Brian Good, a Senior Managing Director of THL Credit
and Co-Head of THL Credit's Tradable Credit strategy, as a new
interested Trustee. Mr. Good serves on the Board of Directors
of THL Credit and also is a member of THL Credit's Global
Investment Committee and Tradable Credit Investment
Committee. Steven A. Baffico, a Managing Partner and Chief
Executive Officer of FWCP, and the Fund's current interested
Trustee, will remain on the Board.
Eagle Growth and Income Opportunities Fund
The Fund is a diversified, closed-end management
investment company that is advised by Four Wood Capital Advisors
LLC, a wholly-owned subsidiary of Four Wood Capital Partners LLC,
and sub-advised by Eagle Asset Management, Inc. The Fund's
investment objective is to provide total return through a
combination of current income and capital appreciation. There can
be no assurance that the Fund will achieve its investment
objective.
"Managed Assets" of the Fund means the total
assets of the Fund (including any assets attributable to borrowings
for investment purposes) minus the sum of the Fund's accrued
liabilities (other than liabilities representing borrowings for
investment purposes). Borrowings for investment purposes
include any form or combination of financial leverage instruments,
such as borrowings from banks or other financial institutions
(i.e., a credit facility), margin facilities, the issuance of
preferred shares or notes and leverage attributable to reverse
repurchase agreements, dollar rolls or similar transactions.
CLOs and similar structured finance securities
are generally backed by an asset or a pool of assets, which serve
as collateral. Depending on the type of security, the collateral
may take the form of a portfolio of mortgage loans or bonds or
other assets. The Fund and other investors in structured finance
securities ultimately bear the credit risk of the underlying
collateral. In some instances, the structured finance securities
are issued in multiple tranches, offering investors various
maturity and credit risk characteristics, often categorized as
senior, mezzanine and subordinated/equity according to their degree
of risk. If there are defaults or the relevant collateral otherwise
underperforms, scheduled payments to senior tranches of such
securities take precedence over those of mezzanine tranches, and
scheduled payments to mezzanine tranches take precedence over those
to subordinated/equity tranches. In light of the above
considerations, structured finance securities may present risks
similar to those of the other types of debt obligations in which
the Fund may invest and, in fact, such risks may be of greater
significance in the case of structured finance securities.
Moreover, investing in structured finance securities may entail a
variety of unique risks. In addition to the risks noted above and
other risks, structured finance securities may be subject to
prepayment risk. In addition, the performance of a structured
finance security will be affected by a variety of factors,
including the security's priority in the capital structure of the
issuer thereof, the availability of any credit enhancement, the
level and timing of payments and recoveries on and the
characteristics of the underlying receivables, loans or other
assets that are being securitized, remoteness of those assets from
the originator or transferor, the adequacy of and ability to
realize upon any related collateral and the capability of the
servicer of the securitized assets. In addition, the complex
structure of the security may produce unexpected investment
results, especially during times of market stress or volatility.
Investments in structured finance securities may also be subject to
illiquidity risk.
About THL Credit Advisors
LLC
THL Credit is an alternative credit investment
manager for both direct lending and broadly syndicated investments
through public and private vehicles, collateralized loan
obligations, separately managed accounts and co-mingled funds.
As of June 30, 2019, THL Credit had $16.8 billion in assets
under management.1 THL Credit maintains a variety of advisory
and sub-advisory relationships across its investment platforms,
including THL Credit, Inc. (Nasdaq: TCRD), a publicly traded
business development company, and THL Credit Senior Loan Fund
(NYSE: TSLF), a non-diversified, closed-end management investment
company. Headquartered in Boston, THL Credit also has offices
in Chicago, Dallas, Los Angeles and New York. For more
information, please visit www.THLCredit.com.
About Eagle Asset Management,
Inc.
Founded in 1984, Eagle Asset Management provides
an array of fundamental equity and fixed income strategies designed
to meet long-term goals of institutional and wealth clients.
Eagle's multiple independent investment teams overseeing separately
managed accounts and funds have the autonomy to pursue investment
decisions guided by their unique philosophies and strategies. Visit
www.eagleasset.com.
About Four Wood Capital Advisors
LLC
Four Wood Capital Advisors LLC is the Fund's
investment adviser and is registered with the U.S. Securities
Exchange Commission as an investment adviser. FWCA is a New York
limited liability company formed in June 2012 to provide investment
management and advisory services to registered investment companies
and institutional investors. FWCA is a wholly owned
subsidiary of Four Wood Capital Partners LLC.
Forward-Looking Statements
Statements included herein may constitute
"forward-looking statements", which relate to future events or our
future performance or financial condition. These statements
are not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results
may differ materially from those in the forward-looking statements
as a result of a number of factors, including those described from
time to time in our fillings with the Securities and Exchange
Commission ("SEC"). Eagle Growth and Income Opportunities
Fund undertakes no duty to update any forward-looking statements
made herein.
Additional Information and Where to Find
It
The Fund intends to file a preliminary proxy
statement with the SEC in the near future. The Fund also
plans to file with the SEC and mail to its shareholders a
definitive proxy statement (the "definitive proxy statement") and
other relevant materials. THE FUND'S SHAREHOLDERS ARE
URGED TO READ THE DEFINITIVE PROXY STATEMENT AND THE OTHER RELEVANT
MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE FUND AND THE PROPOSALS SET FORTH
THEREIN, INCLUDING THE APPROVAL OF AN ADVISORY AGREEMENT WITH THL
CREDIT AND A SUBADVISORY AGREEMENT BETWEEN THL CREDIT AND
EAGLE. Shareholders will be able to obtain the
definitive proxy statement and the other relevant materials (when
they become available), and any other documents filed by the Fund
with the SEC, free of charge, from the SEC's website at
www.sec.gov. Shareholders also may obtain free copies of the
definitive proxy statement, the other relevant materials and other
documents filed with the SEC from the Fund by contacting THL Credit
Advisors LLC at 212-829-3126.
Participants in the
Solicitation
The Fund and its Trustees and officers and
employees of THL Credit and Eagle may be deemed to be participants
in the solicitation of proxies of the Fund's shareholders in
connection with the approval of the new advisory and sub-advisory
agreements discussed herein. Shareholders of the Fund may
obtain information about the Fund's Trustees and executive
officers, including their beneficial ownership of the Fund's
shares, in the Fund's annual report for the year ended December 31,
2018, filed as part of Form N-CSR with the SEC on March 11,
2019. More detailed information regarding the identity of
potential participants, and their direct or indirect interests, by
security holdings or otherwise, and information about THL Credit
and Eagle, will be set forth in the Fund's definitive proxy
statement and other relevant materials when such documents become
available. These documents may be obtained free of charge
from the sources indicated above.
Contact
Andrew ParkTHL Credit Advisors LLC212-829-3126
1 Includes the AUM of THL Credit Advisors LLC and its
consolidated subsidiary, THL Credit Senior Loan Strategies LLC, as
well as the AUM of its affiliate, THL Credit, Inc., and its related
funds and separate account.
THL Credit Senior Loan (NYSE:TSLF)
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