ABRDN INCOME CREDIT STRATEGIES FUND 5.25% SERIES A PERPETUAL PREFERRED SHARES DECLARE QUARTERLY DIVIDEND

Rhea-AI Summary

abrdn Income Credit Strategies Fund (ACP) has declared a quarterly cash distribution of $0.328125 per share for its 5.25% Series A Perpetual Preferred Shares (ACP PRA). The distribution will be paid on June 30, 2025, to shareholders of record as of June 20, 2025. The Series A Preferred Shares, rated A2 by Moody's, were initially issued on May 10, 2021, at $25.00 per share and carry an annual dividend rate of $1.3125. The distributions may come from various sources including ordinary income, capital gains, and return of capital, with final tax reporting details to be provided in January 2026 via Form 1099-DIV.

Positive

• Consistent quarterly dividend payment maintained at $0.328125 per preferred share
• Strong A2 rating from Moody's Investors Service indicates high credit quality
• Preferred shares provide a stable annual dividend yield of 5.25%

Negative

• Distributions may include return of capital, which could impact the fund's long-term sustainability
• Final tax treatment of distributions remains uncertain until fiscal year end

PHILADELPHIA, June 10, 2025 /PRNewswire/ -- The Board of Trustees of abrdn Income Credit Strategies Fund (the "Fund"), has declared a cash distribution of $0.328125 per share of the Fund's 5.250% Series A Perpetual Preferred Shares (NYSE: ACP PRA) ("Series A Preferred Shares"). The distribution is payable on June 30, 2025, to holders of Series A Preferred Shares of record on June 20, 2025 (ex-dividend date June 20, 2025).

The Series A Preferred Shares trade on the NYSE under the symbol "ACP PRA", are rated "A2" by Moody's Investors Service and have an annual dividend rate of $1.3125 per share. The Series A Preferred Shares were issued on May 10, 2021, at $25.00 per share and pay distributions quarterly.

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. In January 2026, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of distributions and provide information with respect to their appropriate tax treatment for the 2025 calendar year.

You should not draw any conclusions about the Fund's investment performance from the amount of this distribution. 

Aberdeen Investments Global is the trade name of Aberdeen's investments business, herein referred to as "Aberdeen Investments" or "Aberdeen". In the United States, Aberdeen Investments refers to the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.

Closed-end funds are traded on the secondary market through one of the stock exchanges. A Fund's investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that a Fund will achieve its investment objective. Past performance does not guarantee future results.

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SOURCE abrdn Income Credit Strategies Fund 5.25% Series A Perpetual Preferred Shares

FAQ

What is the quarterly dividend amount for ACP Series A Preferred Shares?

The quarterly dividend amount for ACP Series A Preferred Shares is $0.328125 per share

When is the ex-dividend date for ACP's preferred shares dividend?

The ex-dividend date is June 20, 2025

What is the annual dividend rate for ACP Series A Preferred Shares?

The annual dividend rate is $1.3125 per share, representing a 5.25% yield on the initial $25.00 share price

What is the Moody's rating for ACP Series A Preferred Shares?

The Series A Preferred Shares are rated A2 by Moody's Investors Service

When were ACP Series A Preferred Shares initially issued?

The Series A Preferred Shares were issued on May 10, 2021, at $25.00 per share