DALLAS, August 31, 2021 / PRNewswire / – Vertical Capital Income Fund (NYSE: VCIF) today announced the results of the fund’s 2021 Annual Meeting of Shareholders held on August 27, 2021. Shareholders of the fund voted to re-elect T. Neil Bathon, who currently acts as an independent trustee.
Vertical Capital Income Fund (“Fund”) also announced the amendment, reorganization and renewal of its credit facility, which is overseen by the Fund’s advisor, Oakline Advisors. The Fund has again entered into a $ 35 million credit facility now maturing in July 2022, guaranteed by the VCIF loan portfolio. The Fund currently has $ 2.0 million unpaid on his credit facility.
Under the amended terms of the credit facility, outstanding balances will generally bear interest at a floating rate equal to the prime rate plus 50 basis points with a floor interest rate of 3.90%. NexBank remains the lender.
“We are happy to mark these important milestones for the [Fund] and its ongoing work to achieve the goals of our investors. Curator T. Neil Bathon has been an integral part of the Fund’s success for many years and we are pleased that it continues to guide VCIF into the future. We are also pleased to announce the renewal and modification of our credit facility which will continue to meet our responsible borrowing needs over the next year, and we plan to use the facility as needed to manage the debt requirements. capital for acquisitions and other general purposes, ”said Michael D. Cohen, President of the Fund.
Finally, as previously announced, the Fund paid a monthly distribution of $ 0.0789 per share to all shareholders of record August 19, 2021, in accordance with the Fund’s managed distribution plan (the “Plan”).
In general, the amount of distributable income of the Fund depends on the cumulative gains and losses realized by the Fund during the whole year. Distributions may consist of net investment income, capital gains and return of capital, but the character of such distributions can not be determined until after the end of the financial year of the Fund. However, under the Investment Company Act of 1940, as amended, and the terms of the Plan, the Fund may be required to disclose the source of each distribution to its shareholders. The following table shows the estimated sources of the current distribution and the cumulative distributions paid in fiscal 2021 to date from the sources shown in the table. All amounts are expressed per share and as a percentage of the amount of the distribution.
To share (%)
Cumulative cumulative over the current financial year
To share (%)
Net short circuit realized
Capital gains over time
Net realized long-
Capital gains over time
Repayment of capital
or other capital
(1) You should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Fund’s distribution policy.
(2) The amounts and sources of distributions shown in this 19 (a) notice are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to change depending on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year which will tell you how to report these distributions for federal income tax purposes.
(3) The Fund considers that it has distributed more than its income and net realized capital gains; therefore, part of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money you have invested in the Fund is returned to you. A return of capital distribution does not necessarily reflect the performance of the Fund’s investments and should not be confused with “return” or “income”.
Average annual total return at net asset value for the 5-year period ended July 31, 20211
Current annualized payout rate expressed as a percentage of NAV as of July 31
Total cumulative return at net asset value for the year ended July 31, 20213
Cumulative distribution rate since the beginning of the fiscal year as a percentage of the net asset value as at July 31
The average annual total return at net asset value represents the change in the net asset value of the Fund, with all distributions being
reinvested, for the 5-year period ended July 31, 2021.
The current annualized payout rate is the annualized cumulative payout rate as a percentage
of the Fund’s net asset value as of July 31, 2021.
The cumulative total return at the net asset value corresponds to the percentage change in the net asset value of the Fund for the period from the
from the start of its financial year to July 31, 2021, including distributions paid and assuming the reinvestment of
Cumulated payout rate for the fiscal year for the period from the start of its fiscal year
as at July 31, 2021 measured on the dollar value of distributions during the cumulative period as a percentage
of the Fund’s net asset value as of July 31, 2021.
The Plan will be subject to periodic review by the Board, and the Board may change the terms of the Plan, including changing the annual payout rate, or may terminate the Plan at any time without notice to shareholders of the Fund. The distribution rate of the Fund may be affected by many factors, including changes in realized and projected market returns, the performance of the Fund and other factors. There can be no assurance that an unforeseen change in market conditions or other unforeseen factors will not result in a change in the distribution rate of the Fund at a later date. The modification or termination of the Plan could have an adverse effect on the price of the shares of the Fund. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks to which the Fund is exposed. The duration of the COVID-19 outbreak and its effects cannot be determined with certainty. In order to comply with the requirements of Section 19 of the Investment Companies Act of 1940 and with an exemption order received by the Fund from the Securities and Exchange Commission, the Fund will provide its shareholders of record on each date 19 (a) Notify and issue an accompanying press release disclosing the sources of its distribution payment when a distribution includes anything other than net investment income. This information will be available later this month.
The amounts and sources of distributions shown in Notices 19 (a) are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during its full financial year and may be subject to change depending on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will tell them how to report these distributions for federal income tax purposes. Information on the Fund’s 19 (a) notices, if any, can be found at www.vertical-revenufund.com. The final the determination of the source and tax characteristics of all distributions in 2021 will be made after the end of the year.
Closed-end fund stocks often trade at a discount to their net asset value. The market price of the shares of the Fund may vary from the net asset value depending on factors affecting the supply and demand of shares, such as the distribution rates of the Fund compared to similar investments, investors’ expectations regarding future distribution changes, the clarity of the Fund’s investment strategy and return expectations and investor confidence in the underlying markets in which the Fund invests. Shares of the Fund are subject to investment risk, including the possible loss of invested capital. No Fund is a complete investment program and you can lose money by investing in a Fund. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the investment objective, risks, charges and expenses of the Fund. For more details, please visit the Vertical Capital Income Fund website at vertical-revenufund.com.
This press release contains forward-looking statements relating to the business and financial prospects of Vertical Capital Income Fund which are based on current expectations, estimates, forecasts and projections of the Fund and are not guarantees of future performance. There can be no assurance that the Fund will achieve its investment objective. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this press release.
About the Vertical Capital Income Fund
Vertical Capital Income Fund (VCIF) is a NYSE-listed closed-end fund that seeks monthly income by investing primarily in full agency-free residential real estate loans backed by real estate. As a secondary strategy, the Fund aims to provide a total return by acquiring performing residential loans at a price below the outstanding principal balance (UPB). The VCIF realizes capital gains because the loans are repaid before maturity.
About Oakline Advisors, LLC
Oakline Advisors, LLC is the advisor to Vertical Capital Income Fund. Founded in 2013, Oakline Advisors, LLC is an SEC registered investment advisor that specializes in the entire residential loan market. It is a wholly owned subsidiary of Dallas, Texas-based on Behringer. Since its inception in 1989, Behringer, along with its subsidiaries, has raised equity capital of over $ 6 billion in assets through public and private fund structures. For more information on Oakline and Behringer, please visit their respective websites at Oaklineadvisors.com and behringerinvestments.com.
Fund units are identified by CUSIP 92535C104
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