TORO Chenavari Toro Income Fund Limited

TIDMTORO

RNS Number : 7819F

Chenavari Toro Income Fund Limited

19 November 2020

Chenavari Toro Income Fund Limited (the Company)

19 November 2020

Quarterly Dividend and Special Distribution for the Quarter ended 30 September 2020

In line with the enhanced dividend policy announced by the Company on 8 June 2020 (the "Enhanced Dividend Policy"), the Company is pleased to announce payment of its quarterly dividend of 2.5% (Euro 0.018 per ordinary share) (the "Regular Quarterly Dividend") and a special quarterly distribution of Euro 0.018 per ordinary share ("Special Distribution") for the period from 1 July 2020 to 30 September 2020, meaning a combined Quarterly Dividend and Second Special Distribution of Euro 0.036 per ordinary share.

Payment will be made on 23 December 2020 to holders of ordinary shares recorded on the register as at close of business on 27 November 2020 with an ex-dividend date of 26 November 2020. The quarterly Dividend Yield remains targeted at 2.5% quarterly.

The Special Dividend was determined by taking into account the available cash, the scheduled investments into primary and secondary CLOs for the coming quarter, and the Enhanced Dividend Policy (and rebalancing investment strategy) dated 8 June 2020. Considering recent improvements in the economic outlook and the investment horizon, in light of the recent positive developments announced in relation to a Covid-19 vaccine, the Company has scheduled investments into primary and secondary CLOs given the attractiveness and resilience of the investment opportunity.

Shareholders wishing to take the dividend in scrip, or to make a dividend currency election, should note that the last date to make an election to join the Scrip dividend scheme or make a currency election to be eligible for the dividend paying on 23 December 2020 is 17:00 on 9 December 2020. The Scrip Reference Price will be calculated and announced on or around 3 December 2020.

The Special Distribution is part of the Enhanced Dividend Policy of the Company, which has been put in place to maintain a maximum cash balance in the Company's portfolio of 10 per cent of NAV at the end of each calendar quarter up to 31 December 2020. All excess cash in excess of this balance within the portfolio will be distributed as a special distribution on a quarterly basis. The special distributions will be in addition to any quarterly dividend paid pursuant to the Company's normal dividend policy.

With effect from 1 January 2021, the maximum cash balance cap will be reduced to a level of not more than 5 per cent. of NAV, unless the investment manager, at its discretion, decides to maintain such cap at a maximum of 10 per cent., should market opportunities in liquid and tradable European ABS / CLO arise.

The payment of any quarterly special distribution is subject to the Company having excess cash available. Shareholders should have no expectation that any such special dividends will be paid in any future quarter.

Further information in relation to the Company is available at:

http://www.chenavaritoroincomefund.com

Enquiries :

Sophie Porter / Guy Goyard

Chenavari Investment Managers

Email: tlir@chenavari.com

Telephone: +44 20 7259 3600

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