JACKSON, Wyo., September 12, 2023 (Newswire.com) - Flat Rock Global announces an increase in the distribution rates for two of its funds, the Flat Rock Core Income Fund (CORFX) and Flat Rock Enhanced Income Fund (FRBBX), effective the fourth quarter of 2023.
"All of Flat Rock's funds focus on underlying investments in floating rate, first lien senior secured loans. The current rising interest rate environment benefits investors, resulting in higher distribution yields driven by higher interest rates," said Robert Grunewald, Flat Rock Global Founder and CEO. "Since its founding, the distribution rate increased on the Core Income fund from 6.5% to 9.1%." The distribution rate on the Enhanced Income Fund increased since its founding in February from 9.6% to 10.7%.[1]
The Board of Trustees for each fund authorized monthly distributions for October through the end of the year as follows:
- Flat Rock Core Income Fund (CORFX) will pay a monthly distribution of $0.155 per share, an increase of 16% from its current distribution rate of $0.133 per share.
Flat Rock Core Income Fund will also pay a special dividend of $0.15 per share on October 18 to shareholders of record as of October 16.
- Flat Rock Enhanced Income Fund (FRBBX), which was launched in February of 2023, will pay a monthly distribution of $0.19 per share. This is an increase of 14% from its current distribution rate of $0.166 per share.
The monthly distribution payments will be made on October 10, November 13, and December 11.
"These increases more closely align distribution rates with income earned," added Grunewald. "We continue to evaluate monthly distribution rates as the interest rate environment evolves."
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 $700 million of assets as of August 31, 2023. To learn more about the Firm and our funds, please visit www.flatrockglobal.com or email us at [email protected].
Information about the Flat Rock Core Income Fund may be obtained at https://flatrockglobal.com/core-income-fund/. This material must be preceded or accompanied by a prospectus. ALPS Distributors Inc. serves as our principal underwriter, within the meaning of the 1940 Act, and will act as the distributor of our shares on a best efforts basis, subject to various conditions.
Consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing.
Information about the Flat Rock Enhanced Income 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.
Investors should consider the investment objectives, risks, and charges and expenses of the Flat Rock Enhanced Income Fund before investing. The prospectus contains this and other information about the Fund and should be read carefully before investing. The prospectus may be obtained at flatrockglobal.com.
Investing involves risk, including loss of principal. The Fund is suitable for investors who can bear the risks associated with the Fund's limited liquidity and should be viewed as a long-term investment. Our shares have no history of public trading, nor is it intended that our shares will be listed on a national securities exchange at this time, if ever. No secondary market is expected to develop for our shares; liquidity for our shares will be provided only through quarterly repurchase offers for no less than 5% of and no more than 25% of our shares at net asset value, and there is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in the repurchase offer. Due to these limited restrictions, an investor should consider an investment in the Fund to be of limited liquidity. Investing in our shares may be speculative and involves a high degree of risk, including the risks associated with leverage. Investing in the Fund involves risks, including the risk that shareholders may lose part of or all of their investment. We intend to invest primarily in the junior debt tranches of CLOs. Our investments in the junior debt tranches of CLOs are exposed to leveraged credit risk. Investments in the lowest tranches bear the highest level of risk. We may pay distributions in significant part from sources that may not be available in the future and that are unrelated to our performance, such as a return of capital or borrowing. The amount of distributions that we may pay, if any, is uncertain.
[1] Distribution rate comparison for CORFX reflects fund inception (07/02/2017) to market close 09/08/2023. Distribution rate comparison for FRBBX reflects fund inception (01/03/2023) to market close 09/08/2023. The distribution rate is calculated as next monthly declared distribution * 12, divided by the share price.
Contact Information:Ann Hynek
Director of Marketing
[email protected]
307.500.5213
Michael Barry
Communications Director
[email protected]
609-638-1216
Original Source: Current Interest Rate Environment Contributes to Distribution Increases for Two Flat Rock Global Funds
