CHICAGO, Nov. 23, 2020 /PRNewswire/ -- The Board of
Directors of DNP Select Income Fund Inc. (NYSE: DNP) and Duff &
Phelps Utility and Corporate Bond Trust Inc. (NYSE: DUC),
closed-end funds advised by Duff & Phelps Investment Management
Co., today announced a proposed merger of DUC with and into
DNP.
Subject to the approval of the shareholders of DUC, DUC will
merge into DNP, with DNP as the surviving company of the merger.
The combined fund will retain DNP's name and ticker symbol, as well
as DNP's investment objectives, strategies and policies.
Each fund's board approved the recommendation of Duff &
Phelps Investment Management Co. to merge the two funds. In making
the determination to accept the adviser's recommendation, each
board took into account a number of factors, including (1)
potential economies of scale that could be realized by the combined
fund, (2) the common features of each fund's investment objectives
and strategies and (3) DNP's market value premium to net asset
value ("NAV") and the potential to reduce DUC's market value
discount to NAV. In addition, the merger is being recommended
by the DUC board pursuant to a standstill agreement between DUC and
a significant shareholder, Karpus Management Inc. ("Karpus"). DUC
has been advised that Karpus will file a copy of the standstill
agreement with the U.S. Securities and Exchange Commission ("SEC")
as an exhibit to an amended Schedule 13D.
Shareholders of DUC will be asked to approve the proposed merger
at a special shareholder meeting in 2021.
About DNP
DNP Select Income Fund Inc. is a closed-end diversified
investment management company whose primary investment objectives
are current income and long-term growth of income. The fund seeks
to achieve these objectives by investing primarily in a diversified
portfolio of equity and fixed income securities of companies in the
public utilities industry. For more information, please visit
www.dpimc.com/dnp or call (800) 864-0629.
About DUC
Duff & Phelps Utility and Corporate Bond Trust Inc. is a
closed-end diversified investment management company whose primary
investment objective is high current income consistent with
investing in securities of investment grade quality. The fund
seeks to achieve its objectives by investing substantially all of
its assets in a diversified portfolio of utility income securities,
corporate income securities, mortgage-backed securities and
asset-backed securities. For more information, visit
www.dpimc.com/duc or call (800) 338-8214.
About the Investment Adviser
Duff & Phelps Investment Management Co. has more than 40
years of experience managing investment portfolios, including
institutional separate accounts and open- and closed-end funds
investing in utilities, infrastructure and real estate investment
trusts (REITs). For more information, visit
www.dpimc.com.
Duff & Phelps is a subsidiary of Virtus Investment Partners
(NASDAQ: VRTS), a multi-boutique asset manager with approximately
$116.5 billion under management as of
September 30, 2020. Virtus
provides investment management products and services to individuals
and institutions through a multi-manager asset management business,
comprising a number of individual affiliated managers, each with a
distinct investment style, autonomous investment process and
individual brand. Additional information can be found at
www.virtus.com.
Important Information and Where to Find It
More information on the proposed merger will be contained in the
proxy materials expected to be filed in the coming weeks. In
connection with the proposed merger, DNP intends to file with the
SEC a registration statement on Form N–14, including a proxy
statement/prospectus, which will include a preliminary proxy
statement to be distributed to holders of DUC's shares in
connection with DUC's solicitation of proxies for the vote by DUC's
shareholders with respect to the merger and a prospectus relating
to the offer of the securities to be issued by DNP to DUC's
shareholders in connection with the merger. DUC shareholders are
urged to read the proxy statement/prospectus, any amendments
thereto and any other documents filed with the SEC carefully and in
their entirety when they become available because they will contain
important information about DNP, DUC and the merger. Investors and
security holders may obtain free copies of the preliminary proxy
statement/prospectus and definitive proxy statement/prospectus
(when available) and other documents filed with the SEC by DNP and
DUC through the website maintained by the SEC
at http://www.sec.gov, or by directing a request
to: (800) 338-8214.
Participants in the Solicitation
DNP and DUC and their respective directors and certain of their
respective executive officers and other members of management and
employees may be considered participants in the solicitation of
proxies with respect to the proposed transactions. Information
regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be included in the proxy
statement/prospectus and other relevant materials to be filed with
the SEC regarding the merger when they become available.
Shareholders, potential investors and other interested persons
should read the proxy statement/prospectus carefully when it
becomes available before making any voting or investment decisions.
When available, these documents can be obtained free of charge from
the sources indicated above.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of securities of
DNP or DUC in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
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SOURCE DNP Select Income Fund Inc.; Duff & Phelps Utility
and Corporate Bond Trust Inc.