Flat Rock Enhanced Income Fund Declares First Monthly Distributions
Flat Rock Global's Board of Trustees declared its first monthly distributions for the new Flat Rock Enhanced Income Fund (FRBBX)
JACKSON, Wyo., May 15, 2023 (Newswire.com) - Flat Rock Enhanced Income Fund, (ticker "FRBBX"), an SEC-registered interval fund1 focused on investing in the BB-rated securities of Collateralized Loan Obligations ("CLOs"), announced that its Board of Trustees declared its first monthly distributions of $0.166/share. The distributions will be paid on May 10 and June 12 of 2023. Based upon the closing price of FRBBX as of May 5, the annualized effective distribution rate is 9.63%2.
"The Flat Rock Enhanced Income Fund provides investors with the opportunity to gain exposure to a diversified portfolio of middle market loans with the added benefit of CLO equity providing a buffer against losses," said Robert Grunewald, Flat Rock Global's CEO and Founder. Mr. Grunewald further commented, "FRBBX continues Flat Rock Global's mission to offer investors exposure to niches in the credit markets typically not available through traditional mega-fund managers."3
"Today FRBBX provides investors with exposure to over 1,000 middle-market loans through investments in BB-rated CLO notes generating average annual default rates since 1994 of only 20bp," said Shiloh Bates, the fund's Chief Investment Officer. "The Flat Rock Enhanced Income Fund leverages our unique combination of middle-market lending and CLO investing expertise to take advantage of an often-overlooked asset class."
About Flat Rock Global:
Founded in December 2016, Flat Rock Global is an employee-owned, boutique credit manager founded upon three core principles: 1. A focus on first lien, senior secured loans; 2. A hyper-selective approach to investing; and 3. Offering investment opportunities through interval funds with an institutional-only share class.
The Firm celebrated its sixth-year anniversary last year and manages over $600 million of assets as of March 31, 2023. To learn more about the Firm and our funds, please visit www.flatrockglobal.com or email us at firstname.lastname@example.org.
- The Fund is organized as a Delaware statutory trust and registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a continuously offered, non-diversified, closed-end management investment company that is operated as an interval fund.
- The distribution rate may be modified from time to time. Distribution rate is calculated by most recent distribution / most recent share price, multiplied by 12.
- The Fund invests primarily in the junior debt tranches of collateralized loan obligations ("CLOs") with a particular emphasis on CLO debt tranches initially rated 'BB' by a National Recognized Statistical Rating Organization ("NRSRO"). To a lesser extent, the Fund may invest in other CLO debt securities, CLO equity or other debt securities as permitted by Flat Rock Global's allocation policy.
Consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. Other information about the Fund may be obtained at https://flatrockglobal.com/flat-rock-enhanced-income-fund-frbbx/. This material must be preceded or accompanied by a prospectus. Ultimus Fund Distributors Inc. serves as the Fund's principal underwriter, within the meaning of the 1940 Act, and will act as the distributor of the Fund's shares on a best-efforts basis, subject to various conditions.
Source: Flat Rock Global