{"id":861680,"date":"2025-06-18T08:16:28","date_gmt":"2025-06-18T12:16:28","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/oversubscribed-fins-rights-offering-enables-angel-oak-capital-team-to-deploy-capital-into-higher-coupon-bank-debt-amid-favorable-market-backdrop\/"},"modified":"2025-06-18T08:16:28","modified_gmt":"2025-06-18T12:16:28","slug":"oversubscribed-fins-rights-offering-enables-angel-oak-capital-team-to-deploy-capital-into-higher-coupon-bank-debt-amid-favorable-market-backdrop","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/oversubscribed-fins-rights-offering-enables-angel-oak-capital-team-to-deploy-capital-into-higher-coupon-bank-debt-amid-favorable-market-backdrop\/","title":{"rendered":"Oversubscribed FINS Rights Offering Enables Angel Oak Capital Team to Deploy Capital into Higher-Coupon Bank Debt Amid Favorable Market Backdrop"},"content":{"rendered":"

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Oversubscribed FINS Rights Offering Enables Angel Oak Capital Team to Deploy Capital into Higher-Coupon Bank Debt Amid Favorable Market Backdrop<\/b><\/p>\n

ATLANTA–(BUSINESS WIRE<\/a>)–
\nAngel Oak Financial Strategies Income Term Trust (NYSE: FINS) (the \u201cFund\u201d) is pleased to share an update on the Fund\u2019s capital deployment and general performance following the successful completion of its recent rights offering, which was significantly oversubscribed and raised approximately $110.4 million in gross proceeds. Strong demand drove the oversubscription, with robust participation from existing shareholders, which the Fund believes reflects their confidence in the Fund\u2019s management team and investment strategy.<\/p>\n

\nFor the period ended May 31, 2025, FINS has outperformed its index on a 1-year, 3-year, 5-year and since-inception basis. Additionally, FINS pays out a distribution of over 10% and has narrowed its discount to 5.6% as of May 31, 2025, one of the largest improvements of its peer group over the past year. The Fund\u2019s management team continues to deploy fresh capital into higher-coupon bank debt, taking advantage of the marked increase in issuance volumes, as community and regional banks seek to refinance or call debt originated during the post-COVID 2020 vintage.<\/p>\n

\n\u201cThe banking sector has several notable tailwinds we are seeking to take advantage of, given strong credit fundamentals across the banking system, with expanding net interest margins, stable credit quality and a growing pipeline of M&A activity,\u201d said Johannes Palsson, Portfolio Manager for the Fund. \u201cThe success of our recent offering validates our conviction in the opportunities we\u2019re seeing across the financial sector, and we look forward to deploying capital in the current environment.\u201d<\/p>\n

\n\u201cWith decades of experience across our management team and nearly $2 billion invested across private and public strategies in regional and community bank debt, Angel Oak is well positioned to deploy capital and deliver value for our investors,\u201d said Sreeni Prabhu, Managing Partner and Group Chief Investment Officer. \u201cOur success in managing through multiple cycles and our established presence in the bank-debt sector for more than a decade bode well for the bullish outlook we expect to maintain over the next six to 12 months.\u201d<\/p>\n

NAV PERFORMANCE AND THE RIGHTS OFFERING
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<\/b>Ahead of the rights offering share issuance, FINS\u2019 2025 year-to-date NAV performance benefitted from the resumption of bank debt primary market issuance with meaningful volume, following a slowdown in 2023 and early 2024 due to rising interest rates and the lingering effects of the regional banking crisis. New investment-grade bank debt is coming to market at highly attractive coupons, and pricing has improved on legacy portfolio positions. Notably, a significant portion of the legacy bank-debt portfolio is approaching its call and floating-rate period within the next 12 months, which the Fund believes will position these holdings to pull to par as deals reset to floating rate or are called. Additionally, select tactical equity positions rebounded sharply post-Liberation Day. Tactical opportunities remain a small portion of the Fund, accounting for less than 10% of overall AUM as of May 31, 2025.<\/p>\n

\nDuring the recent rights offering period, NAV was affected by heightened volatility surrounding two specific equity and preferred equity positions: KINS and PNBK.<\/p>\n