TIDMFCIF
RNS Number : 6849I
Funding Circle SME Income Fund Ltd
27 November 2018
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN
PART, IN OR INTO THE UNITED STATES OR TO US PERSONS.
Guernsey, 27 November 2018
Funding Circle SME Income Fund Limited
(the "Company")
British Business Bank Transaction
The Board is pleased to announce that the Company has
established a funding transaction for loans to small and
medium-sized businesses ("SMEs") via Funding Circle's UK platform
and through the British Business Bank's ENABLE Funding Programme
(the "BBB Transaction"). Under the terms of the transaction, the
Department for Business, Energy and Industrial Strategy ("BEIS") -
the British Business Bank's ("BBB") sole shareholder - will provide
up to GBP150 million of funding via a senior, floating rate, loan.
The Company will participate in the transaction by way of a junior
investment. Subject to prevailing market conditions, the Company
may consider refinancing the facility via public ABS markets to
enhance returns further.
It is intended that funding will be drawn down to replace the
Company's existing facilities as they are scheduled to amortise
over the coming years, in line with the Company's stated policy to
operate with leverage limited at 50% of NAV.
Richard Boleat, Chairman of the Company commented: "The Board
welcomes this opportunity to work alongside the BBB to help achieve
one of its key goals of increasing lending to the real economy by
utilising an efficient transmission mechanism for stimulating
lending to SME borrowers, whilst securing ongoing access to
financing for shareholders."
In accordance with LR11.1.10, the Board also announces that it
has entered into a related party transaction in the form of a new
services agreement with Funding Circle Global Partners Limited
("FCGPL"), described in further detail below.
CONTACTS
Richard Boleat, Chairman
+44 (0) 1534 615 656
Richard.Boleat@fcincomefund.com
Sanne Group (Guernsey) Limited
Secretary and Administrator
FundingCircle@sannegroup.com
+44 (0) 1481 739810
PR Agency and Media Contact
TB Cardew
Tom Allison, Emma Crawshaw, Alycia MacAskill
fcifpress@fundingcircle.com
Numis Securities Limited
Nathan Brown, George Shiel
+44 (0) 207 260 1426
n.brown@numis.com
Investor Relations
ir@fcincomefund.com
Website
www.fcincomefund.com
FURTHER INFORMATION
Capitalised terms used in this announcement shall have the
meaning given to them in the Company's prospectus dated 29 August
2018 (the "Prospectus") (unless the context otherwise
requires).
Transaction with BBB
The Company will invest in the BBB Transaction indirectly via UK
IrishCo 2 which will retain a junior interest in the BBB
Transaction SPV.
It is intended that UK IrishCo 2 will enter into an interest
rate swap in relation to the senior loan. It is expected that the
facility will be drawn down over a period of up to 18 months, after
which there will be a reinvestment period of a further 18 months
before the facility begins to amortise monthly, with principal
repayment in relation to the Company's investment sequential to the
senior loan. The facility comes with a 12-year legal maturity. UK
IrishCo 2 will be consolidated by the Company for accounting
purposes.
In approving the Company's participation in the BBB Transaction,
the Board have satisfied themselves that the terms of the BBB
Transaction are such that the Company's indirect investment in the
BBB Transaction will not result in a breach, on a "look-through"
basis, of the Investment Policy or any Portfolio Limits. As this
indirect investment in Credit Assets may be made alongside third
party participants, the Investment Policy and any Portfolio Limits
will be applied to the relevant indirect investments on a pro rata
basis, proportionate to the Company's indirect interest in the
underlying Credit Assets.
RELATED PARTY TRANSACTION
Pursuant to LR 11.1.10, the Company discloses it has entered
into a services agreement with Funding Circle Global Partners
Limited ("FCGPL"). The terms of this agreement substantially
replicate and replace those previously entered into by the Company
and Funding Circle Limited, as detailed in the Company's prospectus
published on 29 August 2018, as well as additionally providing for
advisory services from FCGPL to the Company in relation to possible
exits (whether by sale or otherwise) of all or part of the
Company's interest in Leveraged Transactions. In consideration for
the performance of these exit services, FCGPL may be paid a fee of
up to 0.25% of the total value of the Leveraged Transaction to
which the exit relates, in such proportions that the parties to the
relevant exit agree, (each, an "Exit Fee") provided that the
aggregate Exit Fees payable by the Company in respect of any 12
month period shall not exceed 0.25% of NAV.
DEALING CODES
The ISIN number of the Ordinary Shares is GG00BYYJCZ96, the
SEDOL code is BYYJCZ9 and the TIDM is FCIF.
The ISIN number of the first class of C Share to be issued
pursuant to the Share Issuance Programme will be GG00BG5KMP50, the
SEDOL code will be BG5KMP5 and the TIDM will be FCIC.
The LEI number of the Company is 549300ZQIYQVNIZGOW60.
ABOUT FUNDING CIRCLE SME INCOME FUND
The Company is a registered closed-ended collective investment
scheme registered pursuant to the Protection of Investors
(Bailiwick of Guernsey) Law, 1987, as amended and the Registered
Collective Investment Scheme Rules 2015 issued by the Guernsey
Financial Services Commission.
The Company's investment objective is to provide shareholders
with a sustainable and attractive level of dividend income,
primarily by way of investment in Credit Assets as defined in the
Company's Prospectus.
The information required to be disclosed by Article 23 of
Directive 2011/61/EU on Alternative Investment Fund Managers (and
any implementing legislation or regulations thereunder) can be
found on the Company's website
(http://fcincomefund.com/documents).
IMPORTANT NOTICES
This announcement contains "forward-looking" statements, beliefs
or opinions. These forward-looking statements involve known and
unknown risks and uncertainties, many of which are beyond the
control of the Company and all of which are based on its directors'
current beliefs and expectations about future events.
Forward-looking statements are sometimes identified by the use of
forward-looking terminology such as "believes", "expects", "may",
"will", "could", "should", "shall", "risk", "intends", "estimates",
"aims", "plans", "predicts", "projects", "continues", "assumes",
"positioned" or "anticipates" or the negative thereof, other
variations thereon or comparable terminology, or by discussions of
strategy, plans, objectives, goals, future events, assumptions or
intentions. These forward-looking statements include all matters
that are not historical facts. Forward-looking statements may and
often do differ materially from actual results. They appear in a
number of places throughout this announcement and include
statements regarding the intentions, beliefs or current
expectations of the Board or the Company with respect to future
events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the Company's
business concerning, amongst other things, the financial
performance, liquidity, prospects, growth and strategies of the
Company. These forward-looking statements and other statements
contained in this announcement regarding matters that are not
historical facts involve predictions. No assurance can be given
that such future results will be achieved; actual events or results
may differ materially as a result of risks and uncertainties facing
the Company. Such risks and uncertainties could cause actual
results to vary materially from the future results indicated,
expressed or implied in such forward-looking statements. The
forward-looking statements contained in this announcement speak
only as of the date of this announcement. Nothing in this
announcement is, or should be relied on as, a promise or
representation as to the future. The Company disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this
announcement to reflect any change in its expectations or any
change in events, conditions or circumstances on which such
statements are based unless required to do so by applicable law,
the Prospectus Rules, the Listing Rules or the Disclosure Rules and
Transparency Rules of the FCA. No statement in this announcement is
intended as a forecast or profit estimate.
Neither this announcement nor any copy of it may be made or
transmitted into the United States of America (including its
territories or possessions, any state of the United States of
America and the District of Columbia) (the "United States"), or
distributed, directly or indirectly, in the United States or to US
Persons (as such term is defined in Regulation S under the US
Securities Act of 1933, as amended (the "Securities Act"). Neither
this announcement nor any copy of it may be taken or transmitted
directly or indirectly into Australia, Canada, Japan or South
Africa or to any persons in any of those jurisdictions, except in
compliance with applicable securities laws. Any failure to comply
with this restriction may constitute a violation of United States,
Australian, Canadian, Japanese or South African securities laws.
The distribution of this announcement in other jurisdictions may be
restricted by law and persons into whose possession this
announcement comes should inform themselves about, and observe, any
such restrictions. This announcement does not constitute or form
part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for securities
in the United States, Australia, Canada, Japan or South Africa or
in any jurisdiction to whom or in which such offer or solicitation
is unlawful.
Any securities mentioned in this announcement have not been and
will not registered under the Securities Act, and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the
Securities Act.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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