abrdn Income Credit Strategies Fund (ACP) Announces Results of the Special Shareholder Meeting Relating to Proposed Reorganization with Two First Trust-Advised Closed-End Funds
abrdn Income Credit Strategies Fund (NYSE:ACP) held a special meeting of shareholders and approved the issuance of additional shares in connection with the reorganization of First Trust-advised closed-end funds. The shareholders of FSD and FAM will hold a special shareholder meeting to consider the approval of the proposed reorganizations on February 20, 2024. The reorganizations are expected to be completed in the first quarter of 2024.
The approval by shareholders to issue additional shares for the reorganization of First Trust-advised closed-end funds into ACP is a strategic move that could potentially lead to an increase in the Acquiring Fund's assets under management (AUM). This expansion is typically seen as a positive indicator of growth and may attract additional investment. However, the market's reaction to such news can be mixed, depending on the perceived benefits of the reorganization and the current market conditions. Investors will closely monitor the subsequent shareholder meetings of FSD and FAM for the approval of the reorganization, as this will be a critical step towards completing the process within the expected timeframe.
One key point for investors to consider is the impact of this issuance on the share price. The issuance of additional shares could lead to dilution of the existing shareholders' equity. However, if the market perceives the reorganization as a value-adding move, the dilution may be offset by the potential for improved performance and efficiency gains from the combined entity. Furthermore, the trading of closed-end funds at a premium or discount to their net asset value (NAV) provides an additional layer of complexity for investors, as it impacts the attractiveness of the fund's shares in the secondary market.
From a market perspective, the reorganization of closed-end funds is a significant event that can alter the competitive landscape. The consolidation of funds under the ACP umbrella may lead to enhanced market presence and increased bargaining power with service providers. It is important to evaluate the historical performance of the funds involved and the potential synergies that could arise from their merger. The market will also assess the track record of abrdn's management team in executing similar transactions and their ability to integrate the funds effectively.
Another factor to consider is the investor sentiment towards the closed-end fund sector and the broader financial markets. Economic conditions, interest rate trends and the appetite for fixed-income investments will influence the success of the reorganization and the future performance of ACP. The announcement should be viewed in the context of these market dynamics, as they will ultimately determine the level of investor interest and the potential impact on the Acquiring Fund's stock price.
The legal implications of the proposed reorganization are also important to consider. The issuance of additional shares must comply with the requirements of the Securities Act of 1933, as amended, including the preparation of a prospectus. The approval process involves not only the shareholders of the Acquiring Fund but also those of the First Trust-advised funds, FSD and FAM. The successful completion of the reorganization is contingent upon satisfying customary closing conditions, which may include regulatory approvals and other legal considerations.
Investors should be aware that the reorganization is subject to legal due diligence to ensure compliance with applicable laws and to protect the interests of all stakeholders. Any legal hurdles or delays encountered in the process could affect the timeline and success of the reorganization, with potential repercussions for the stock price of the Acquiring Fund. Thus, the legal process is a critical component that requires careful monitoring by investors.
01/19/2024 - 04:27 PM
PHILADELPHIA, PA / ACCESSWIRE / January 19, 2024 / abrdn Income Credit Strategies Fund (NYSE:ACP) (the "Acquiring Fund") announced that it held a special meeting of shareholders on January 19, 2024 (the "Meeting") at which shareholders of the Acquiring Fund voted to approve the issuance of additional shares of ACP in connection with the proposed reorganization of the First Trust-advised closed-end funds, as noted below.
As of the record date, October 23, 2023, ACP had outstanding 52,109,950 shares of common stock and 1,600,000 shares of outstanding preferred stock. 42.57% of outstanding common stock were voted, representing a quorum.
Proposal: To approve the issuance of additional common shares of beneficial interest of the Fund in connection with the reorganization of First Trust High Income Long/Short Fund ("FSD") and First Trust/abrdn Global Opportunity Income Fund ("FAM"), each a closed-end fund, with and into ACP.
Votes For
Votes Against
Votes Abstained
17,208,268
4,115,829
858,579
The shareholders of FSD and FAM will hold a special shareholder meeting to consider the approval of the proposed reorganizations on February 20, 2024. It is currently expected that the reorganizations, if approved by shareholders of FSD and FAM, will be completed in the first quarter of 2024 subject to the satisfaction of customary closing conditions.
Important Information
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, abrdn Asia Limited, abrdn Private Equity (Europe) Limited and abrdn ETFs Advisors LLC.
The information in this press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed transaction or otherwise, 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.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Acquiring 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 the Acquiring Fund will achieve its investment objective. Past performance does not guarantee future results.
For More Information Contact:
abrdn U.S. Closed-End FundsInvestor.Relations@abrdn.com abrdnacp.com
SOURCE: abrdn Income Credit Strategies Fund
press release on accesswire.com
What was approved at the special meeting of shareholders?
The issuance of additional shares of ACP in connection with the proposed reorganization of the First Trust-advised closed-end funds was approved.
When will the shareholders of FSD and FAM hold a special meeting to consider the approval of the proposed reorganizations?
The shareholders of FSD and FAM will hold a special shareholder meeting on February 20, 2024.
When are the reorganizations expected to be completed?
The reorganizations, if approved by shareholders of FSD and FAM, are expected to be completed in the first quarter of 2024.
What is the ticker symbol for abrdn Income Credit Strategies Fund?
The ticker symbol for abrdn Income Credit Strategies Fund is ACP.
