First closed-end fund from Angel Oak leverages the firm’s extensive
banking expertise
ATLANTA–(BUSINESS WIRE)–Angel Oak Capital Advisors, LLC, an investment management firm
specializing in value-driven alternative credit, announced today that it
has priced a registered public offering of 10,750,000 common shares of
the Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), a
closed-end fund that will invest in the community bank debt sector (the
“Fund” or “FINS”), at a public offering price of $20.00 per share, for
gross proceeds to the Fund of $215,000,000. In addition, the Fund has
granted the underwriters a 45-day option to purchase an additional
1,515,634 common shares to cover overallotments, if any. The offering is
subject to customary closing conditions and is expected to close on May
31, 2019.
Led by Angel Oak’s experienced community bank team, FINS will invest in
community bank debt including securitizations of community bank debt. At
least 50% of the Fund’s depository institution debt investments will be
publicly rated investment grade or, if deemed unrated, scored as
investment grade by Angel Oak’s in-house proprietary BankSURF
credit-quality assessment model. The actively managed fund’s intention
is to provide investors with exposure to a niche-market strategy that
historically has not been correlated to interest rates. The Fund has a
limited 12-year term and will terminate on May 31, 2031; provided that
the Fund’s termination date may be extended up to 18 months at the
discretion of the board of trustees of the Fund.
While this is the first closed-end fund offering from Angel Oak, the
firm is currently one of the largest and most active investors in the
community bank debt sector. Since mid-2014, the firm has participated in
more than 150 new issuance deals, accumulating over $1 billion in
subordinated and senior community bank debt.
“We feel the community banking sector presents a compelling opportunity
for investors right now because of the banks’ relatively strong business
models, capital positions and credit quality,” said Johannes Palsson,
Senior Portfolio Manager at Angel Oak. “The strategy behind FINS can
offer appealing yields in a sector that we feel has a long runway for
growth and a relatively lower risk profile.”
“This is a unique strategy because the sector it focuses on is one that
is often overlooked in today’s investment environment,” Palsson
continued. “As leaders in the space, we feel we have a strong
understanding of this asset class and can uncover high-quality,
overlooked debt opportunities that will complement any portfolio looking
for exposure to the financial sector.”
The joint bookrunners for this offering were UBS Investment Bank, Wells
Fargo Securities, RBC Capital Markets, Oppenheimer & Co. and Keefe,
Bruyette & Woods.
About Angel Oak Capital Advisors, LLC
Angel Oak Capital Advisors is an investment management firm focused on
providing compelling fixed-income investment solutions for its clients.
Backed by a value-driven approach, Angel Oak Capital Advisors seeks to
deliver attractive risk-adjusted returns through a combination of stable
current income and price appreciation. Its experienced investment team
seeks the best opportunities in fixed income, with a specialization in
mortgage-backed securities and other areas of structured credit.
As of March 31, 2019, Angel Oak Capital has approximately $9.8 billion
in assets under management through a combination of mutual funds,
private funds and separately managed accounts.
This is not an offer to sell these securities and is not soliciting an
offer to buy these securities in any jurisdiction where the offer or
sale is not permitted. This is not an offering, which can only be made
by a prospectus.
Investors should consider the investment objective, risks, fees and
expenses of the Fund carefully before investing. An investment in the
Fund involves risks, is not appropriate for all investors and is not
intended to be a complete investment program. The prospectus contains
this and other information. Angel Oak Capital Advisors, a registered
investment adviser, is the Fund’s investment manager, Destra Capital
Advisors, LLC, a registered investment adviser, is providing secondary
market servicing for the Fund. Please contact your securities
representative or call 1-877-855-3434 for information about the Fund.
Contacts
Media Contact:
Alex Nye
Gregory FCA for Angel Oak
Capital Advisors
E-mail: alexn@gregoryfca.com
Office:
610-228-2287
Company Contact:
Randy Chrisman
Chief Marketing Officer
at Angel Oak Capital Advisors
E-mail: randy.chrisman@angeloakcapital.com
Office:
404-953-4969
