Red Oak Capital Fund IV LLC, a Delaware limited liability company, announced it elected to redeem all of the outstanding 6.25% Senior Secured A Bonds (CUSIP Number: 75678LAA4) and 6.50% Senior Secured Ra Bonds (CUSIP Number: 75678LAA4) on June 9, 2023.
Red Oak says the Series A Bonds have an aggregate principal amount of $2.22 million and were originally scheduled for redemption on June 30, 2023.
The holders of the Series A Bonds will receive from the company payment in the amount of $1,011.81 per Series A Bond. The holders of the Series Ra Bonds will receive from the company payment in the amount of $1,012.28 per Series Ra Bond.
“The early redemption of ROCF IV reflects the strategic planning and outstanding execution by the Red Oak team despite the challenges faced to deliver results investors demand today,” said Ray Davis, chief strategy officer of Red Oak Capital Holdings. “The remarkable performance of the fund was achieved in a rising interest rate environment that was also challenged by inflation, market volatility and economic worries, all of which added up to uncertainty. The experienced team at Red Oak remains committed to the careful stewardship of our investors’ money, supported by the security that first lien loans on commercial real estate assets can provide.”
The company says a notice of redemption is being sent to all currently registered holders of the Series A Bonds and the Trustee, UMB, N.A.
Red Oak Capital Fund IV LLC was formed on October 31, 2019, to acquire and manage commercial real estate loans and securities and other real estate-related debt instruments.