Eagle Growth and Income Opportunities Fund (the "Fund")
(NYSE: EGIF) today announced pending changes to the Fund's
current investment advisory and sub-advisory arrangements. The
Fund's Board of Trustees (the "Board") has 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 changes to the Fund's advisory arrangements are intended to
reduce expenses and enhance the Fund's original investment
strategy, which in part seeks current income over the Fund's
limited term. Key members of the Fund's current portfolio
management team will also be retained. The addition of THL Credit
will enhance the breadth of capabilities in income-producing
securities through THL Credit's expertise in bank loans, high yield
bonds and structured credit investments. 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.
THL Credit will commence serving as the investment adviser, and
Eagle will continue serving as sub-adviser, to the Fund on August
31, 2019 pursuant to interim advisory and subadvisory agreements
that were approved by the Board. The Board is expected to consider
approving a new, non-interim advisory agreement between the Fund
and THL Credit and a new, non-interim subadvisory agreement between
THL Credit and Eagle, each of which will be subject to approval by
the Fund's shareholders later this year.
As noted above, the changes to the Fund's advisory arrangements
are expected to lower the Fund's overall expense ratio. Under both
the interim advisory agreement and the proposed new advisory
agreement, the annual fee rate payable by the Fund is expected to
remain at 0.85% of the average daily value of the Fund's Managed
Assets, which had been reduced from 1.05% of the average daily
value of the Fund's Managed Assets effective May 24, 2018. Eagle
will continue to receive, under both subadvisory agreements, a
monthly fee computed at the annual rate of 50% of the advisory fees
paid to THL Credit. These fees will be paid by THL Credit to Eagle.
In addition, commencing on August 31, 2019, THL Credit will provide
investor support services to the Fund as part of its advisory
relationship and, effective September 14, 2019, the Fund will no
longer bear the annual fee of 0.05% of the average daily value of
the Fund's Managed Assets paid to Four Wood Capital Partners LLC
for those services. THL Credit also will limit, indefinitely,
certain non-management expenses borne by the Fund to an amount not
to exceed 0.35% per year of the Fund's Managed Assets (pro-rated
for the period in 2019 during which THL Credit serves as the Fund's
investment adviser). THL Credit also has agreed to bear up to
$500,000 of certain expenses in connection with the transfer of the
advisory relationship from FWCA to THL Credit.
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
subadvised 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.
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 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 subadvisory 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.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190821005781/en/
Andrew Park THL Credit Advisors LLC 212-829-3126
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