DoubleLine Launches DoubleLine Opportunistic Credit Fund

LOS ANGELES, Jan. 27, 2012 /PRNewswire/ -- The DoubleLine Opportunistic Credit Fund (the "Fund") has completed an initial public offering of common shares and has listed on the New York Stock Exchange, Fund adviser DoubleLine Capital LP ("DoubleLine") announced today. Organized as a non-diversified, closed-end management investment company, the Fund trades under the symbol DBL.

The Fund raised approximately $326.5 million in proceeds (before deduction of the sales load and offering expenses and exclusive of the underwriters' overallotment) in the initial public offering of 13,060,000 common shares at $25 per share. The Fund has granted the underwriters an option to purchase additional common shares at the public offering price less the sales load within 45 days of the date of prospectus, solely to cover overallotments, if any. Assuming full exercise of the underwriters' overallotment option, which may or may not occur, overall sales totaled approximately $375.25 million.

Wells Fargo Securities, LLC was the lead manager of the underwriting; UBS Securities LLC was the co-lead. Barclays Capital Inc., BB&T Capital Markets, J.J.B. Hilliard, W.L. Lyons, LLC, Janney Montgomery Scott, Ladenburg Thalmann & Co. Inc., Morgan Keegan & Company, Inc. and Wedbush Securities Inc. were co-managers.

The Fund's investment objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation. The Fund will seek to achieve its investment objective by investing in a portfolio of investments selected for their potential to provide high current income, growth of capital, or both. There is no guarantee that the Fund will achieve its investment objective. Fund investing involves the risk of principal loss.

Jeffrey Gundlach, who is the founder, Chief Executive Officer and Chief Investment Officer of DoubleLine, is principally responsible for implementing the Fund's overall strategy. Philip Barach, co-founder and President of DoubleLine, assists in the implementation of the strategy.

In addition to Mr. Gundlach and Mr. Barach, portfolio managers Joel Damiani and Joseph Galligan assist in managing the Fund's investments in mortgage-backed securities and other structured products. Portfolio manager Luz Padilla manages the emerging markets debt portion of the portfolio. Portfolio manager Bonnie Baha manages the Fund's investments in global developed credit (including corporate and sovereign debt of issuers in developed markets).

The Fund may invest in debt securities and income-producing investments of any kind, including, without limitation, residential and commercial mortgage-backed securities, asset-backed securities, U.S. Government securities, corporate debt, international sovereign debt, and short-term investments. DoubleLine allocates the Fund's assets among market sectors, and among investments within those sectors, consistent with what DoubleLine considers an appropriate level of risk in light of market conditions prevailing at the time.

The Fund may invest in securities of any maturity, and the Fund's average duration will vary from time to time, potentially significantly, depending on DoubleLine's assessment of market conditions and other factors. Duration is a measure of the expected life of a debt instrument that is used to determine the sensitivity of a security's price to changes in interest rates. "Effective" duration is a measure of the Fund's portfolio duration adjusted for the anticipated effect of interest rate changes in bond and mortgage prepayment rates. DoubleLine currently expects that the Fund's dollar-weighted average effective duration will initially be between three and seven years. The duration and effective duration of the Fund's investment portfolio may vary significantly from time to time.

The Fund does not intend to employ investment leverage initially. Subject to DoubleLine's determination that the then-current market conditions are favorable, the Fund intends, at a future date, to add leverage to its portfolio by using reverse repurchase agreements, dollar roll transactions or similar transactions, and/or borrowings, such as through loans or lines of credit from banks or other credit facilities. The Fund will, however, limit its use of leverage from reverse repurchase agreements, dollar roll transactions or similar transactions, and/or borrowings, such that the assets attributable to the use of such leverage will not exceed 33 1/3% of the Fund's total assets (including the amounts of leverage obtained through the use of such instruments).

About DoubleLine Opportunistic Credit Fund

The DoubleLine Opportunistic Credit Fund (the "Fund") is a newly organized, non-diversified, closed-end management investment company. The Fund's investment objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation. There is no guarantee that the Fund will achieve its investment objective. Fund investing involves the risk of principal loss. DoubleLine Capital LP acts as the investment adviser for Fund.

About DoubleLine Capital LP

DoubleLine Capital LP ("DoubleLine") is an investment management firm and a registered investment adviser under the Investment Advisers Act of 1940. The firm is majority employee-owned with CEO Jeffrey Gundlach and President Philip Barach holding a combined controlling interest in the firm. As of January 27, 2012, DoubleLine manages more than $24 billion in assets held in open-end mutual funds, the Fund, separate accounts and hedge funds. The firm's Los Angeles offices can be reached by telephone at (213) 633-8200 or by e-mail at [email protected]. DoubleLine® is a registered trademark of DoubleLine Capital LP.

News media contact: Lewis Phelps, e-mail [email protected], phone 310-890-7369

As the Fund is newly organized, its shares have no history of operations or public trading. Shares of closed-end investment companies frequently trade at a discount to their net asset value, which may increase investors' risk of loss. This risk may be greater for investors expecting to sell their shares in a relatively short period after the completion of this public offering. There are risks associated with an investment in the Fund. Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus, which contains this and other important information about the Fund, should be read carefully before investing. A copy of the prospectus can be obtained from DoubleLine Capital LP by calling 1-213-633-8200. An investment in the Fund should not constitute a complete investment program.

There is no assurance that the Fund will achieve its investment objective.

This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.

Fund investing involves risk. Principal loss is possible.

Investments in debt securities typically decline in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods.  These risks are greater for investments in emerging markets.  Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities.

Past performance is no guarantee of future results.

This material may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates, and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and DoubleLine undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, DoubleLine cannot guarantee the accuracy of the information provided. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information included herein is not an indication of the Fund's future portfolio composition.

The Fund is a "non-diversified" investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are "diversified." Accordingly, the Fund is more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.

SOURCE DoubleLine Capital LP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED