High Income Securities Fund Announces Non-Transferable Rights Offering
September 10 2021 - 01:49PM
Business Wire
High Income Securities Fund (“the Fund”) (NYSE: PCF) announced
today that its Board of Trustees has approved the terms of a
non-transferable rights offering to shareholders to purchase
additional shares of beneficial interest.
The Fund will issue to holders of its shares of beneficial
interest of record on September 22, 2021 non-transferable rights to
subscribe for up to an aggregate of 9,487,873 shares of beneficial
interest. Record date shareholders will receive one right for each
share owned on the record date. The rights will entitle a holder to
purchase one new share of beneficial interest for every full right
held. Rights holders who fully exercise their rights will also be
entitled to subscribe, subject to certain limitations set forth in
the prospectus (which shall be available on the website of the
Securities and Exchange Commission at www.sec.gov) and subject to
allotment, for additional shares of beneficial interest that were
not subscribed for by other rights holders. Rights may be exercised
until 5:00 p.m., New York City time on October 22, 2021, unless
extended (the “Expiration Date”). If there are not enough
unsubscribed shares available to honor all additional subscription
requests, the Fund may, in its sole discretion, issue additional
shares up to 200% of the shares available in the offering to honor
additional subscription requests.
The subscription price for the shares to be issued will be equal
to the lesser of 95% of (1) the net asset value per share (“NAV”)
on the trading day after the Expiration Date or (2) the volume
weighted average market price per share for the three consecutive
trading days ending on the trading day after the Expiration Date,
provided, however that such amount shall not be less than 85% of
the NAV as of the close on the trading day after the Expiration
Date. Because the subscription price will be determined after the
Expiration Date, rights holders will not know the actual
subscription price at the time of exercise. Rights holders will be
required to pay for the shares subscribed for at the estimated
subscription price set forth in the prospectus (and must pay an
additional amount or receive a partial refund, depending on the
actual subscription price).
The market price of the Fund’s shares is currently greater than
its NAV. If, during the 30-day period after the Expiration Date,
the closing price of the Fund’s shares is less than 95% of NAV for
any 5 consecutive trading days, the Board will consider causing the
Fund to commence a self-tender offer for the Fund’s shares at a
price of no less than 95% of NAV.
The rights offering will be made pursuant to a post-effective
amendment to the Fund’s registration statement on Form N-2 to be
filed with the Securities and Exchange Commission.
This press release is not intended to and does not constitute an
offer to sell or the solicitation of an offer to subscribe for or
buy or an invitation to purchase or subscribe for any securities in
any jurisdiction, nor shall there be any sale, issuance or transfer
of securities in any jurisdiction in contravention of applicable
law. No offer of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
For more information, please call InvestorCom, the Fund’s
information agent at (877) 972-0090.
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U.S. Bank Global Fund Services – John Buckel (414) 765-4255
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