CHICAGO, Nov. 23, 2020 /PRNewswire/ -- On
November 23, 2020, the Board of
Directors of DTF Tax-Free Income Inc. (NYSE: DTF) (the
"Fund"), a closed-end fund advised by Duff & Phelps Investment
Management Co., authorized (subject to certain conditions) a cash
tender offer for up to 17.5% of the Fund's outstanding shares of
common stock (the "Shares"). The commencement of the tender offer
will be announced at a later date.
In addition, the Board of Directors has also approved certain
amendments to the Fund's charter which, if approved by the Fund's
shareholders, will convert the Fund from having a perpetual
existence to having a 7-year term. The Board of Directors
believes that such a change (1) is consistent with the Fund's
fixed-income investment strategy and (2) will help reduce the
current trading discount of the Fund's market price per Share to
the Fund's net asset value per Share over the remaining life of the
Fund. In addition, the commencement of the tender offer and
the proposed conversion to a term fund are being made pursuant to a
standstill agreement between the Fund and a significant
shareholder, Karpus Management Inc. ("Karpus"). The Fund 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.
The Fund has not commenced the tender offer described in this
release. The terms and conditions of the tender offer will be set
forth in the Fund's offer to purchase. If the number of Shares
tendered exceeds the maximum amount of the tender offer, the Fund
will purchase Shares from tendering shareholders on a pro-rata
basis. Accordingly, shareholders cannot be assured the Fund will
purchase all of the tendered Shares.
Further information about the tender offer, including its
commencement, will be provided by future public announcements. This
announcement is not a recommendation, an offer to purchase or a
solicitation of an offer to sell Shares of the Fund and the above
statements are not intended to constitute an offer to participate
in any tender offer. Shareholders will be notified in accordance
with the requirements of the Securities Exchange Act of 1934, as
amended, and the Investment Company Act of 1940, as amended, either
by publication or mailing or both. The tender offer will be made
only by an offer to purchase, a related letter of transmittal, and
other documents to be filed with the SEC. Shareholders of the Fund
should read the offer to purchase and tender offer statement and
related exhibits when those documents are filed and become
available, as they will contain important information about the
tender offer. These and other filed documents will be available to
investors for free both at the website of the SEC and from the
Fund. There can be no assurance that any Share repurchases will
reduce or eliminate the discount of the Fund's market price per
Share to the Fund's net asset value per Share.
Your proxy is not being solicited at this time regarding the
proposed conversion to a term fund. Shareholders will be able
to obtain free copies of the Proxy Statement and any other
documents related to the Fund's forthcoming annual meeting of
shareholders filed with the SEC by the Fund through the SEC's
website at www.sec.gov and the Fund's website at www.dpimc.com/dtf.
Shareholders are advised to read the Proxy Statement when it is
available because it contains important information.
About the Fund
DTF Tax-Free Income Inc. is a closed-end diversified investment
management company whose investment objective is current income
exempt from regular federal income tax consistent with preservation
of capital. The fund seeks to achieve its investment
objective by investing in a diversified portfolio of
investment-grade tax-exempt obligations. For more
information, visit www.dpimc.com/dtf 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.
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SOURCE DTF Tax-Free Income Inc.