Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.
credit facilityfinancial
A credit facility is a flexible loan arrangement that allows a borrower to access funds up to a set limit whenever needed, similar to a company having an overdraft option on a bank account. It matters to investors because it indicates how easily a business can secure cash when required, affecting its ability to manage expenses, invest, or respond to financial challenges.
closed-endfinancial
A closed-end fund is an investment pool that issues a fixed number of shares in a one-time offering and then those shares trade on an exchange like stocks, rather than being continuously created or redeemed. Investors should care because the market price can rise above or fall below the value of the fund’s underlying holdings, affecting returns and liquidity, and managers have a steady pool of capital to follow long-term strategies.
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CHICAGO--(BUSINESS WIRE)--DNP Select Income Fund Inc. (NYSE: DNP) (the "Fund"), announced today that the Fund will pay its 3.00% Series B Senior Secured Notes due July 22, 2026 (CUSIP: 23325PA@3) (the “Notes”) in full at maturity.The payment will also include regular semi-annual interest due at maturity.
The principal payment will be funded by borrowing under the Fund’s existing credit facility with a major commercial bank.Upon their redemption the Notes will cease and terminate.
About the Fund
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, contact shareholder services at (877) 381-2537, by email at duff@virtus.com, or visit the DNP website, dpimc.com/dnp.
