abrdn Income Credit Strategies Fund Announces Closing Date for Acquisition of Assets From First Trust High Income Long/Short Fund and Announces Distribution Payment Details
Rhea-AI Summary
The abrdn Income Credit Strategies Fund (NYSE:ACP) has announced the closing date for its acquisition of assets from the First Trust High Income Long/Short Fund (NYSE:FSD). The reorganization, approved by FSD shareholders, will finalize on July 19, 2024, assuming all customary conditions are met. This reorganization will result in the cessation of FSD shares trading on the NYSE after the market closes on July 19, 2024. FSD shareholders will receive ACP shares equivalent to the net asset value of their FSD holdings.
Post-reorganization, ACP's combined net assets are projected to be approximately $765.3 million. The merger aims to provide shareholders with benefits such as economies of scale, increased liquidity, and marketability. Additionally, ACP announced a distribution payment of $0.10 per share, payable on July 31, 2024, to shareholders of record as of July 19, 2024.
Positive
- Expected combined net assets of $765.3 million post-reorganization
- Potential economies of scale and larger fund size
- Increase in liquidity and marketability of the combined fund
- Distribution payment of $0.10 per share on July 31, 2024
Negative
- Shares of FSD will cease trading on the NYSE, potentially affecting liquidity for FSD investors
- Reorganization contingent on the satisfaction of customary closing conditions
News Market Reaction
On the day this news was published, FSD declined 0.08%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
PHILADELPHIA, PA / ACCESSWIRE / July 9, 2024 / The Board of Trustees of abrdn Income Credit Strategies Fund (NYSE:ACP) ("ACP" or the "Acquiring Fund") previously announced that shareholders of First Trust High Income Long/Short Fund (NYSE:FSD) ("FSD" or the "Acquired Fund"), advised by First Trust Advisors L.P., have approved the proposed reorganization into ACP ("Reorganization") and today announces that the Reorganization is expected to close at the close of business on July 19, 2024, subject to the satisfaction of customary closing conditions.
To facilitate the Reorganization, it is expected that all shares of FSD will cease trading on the New York Stock Exchange as of market close on Friday, July 19, 2024, and FSD shareholders will be issued new newly issued common shares of ACP with a value equal to the aggregate net asset value of the shares of FSD held by them. The Reorganization will occur based on the relative net asset values of the common shares of FSD. As of July 8, 2024, the combined net assets of ACP following the Reorganization will be approximately
The Reorganization is expected to benefit each fund's shareholders in several important ways, including providing greater opportunities to realize economies of scale by combining the funds' assets resulting in a larger fund. Additionally, the Reorganization is expected to help ensure the viability of the resulting combined fund by increasing scale, liquidity, and marketability of the fund.
Additionally, ACP also announced that the Fund will pay a distribution of US
At the end of each calendar year, a Form 1099-DIV will be sent to shareholders, which will state the amount and composition of ACP's distributions and provide information with respect to their appropriate tax treatment for the prior calendar year.
You should not draw any conclusions about ACP's investment performance from the amount of the distributions.
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, 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.
If you wish to receive this information electronically, please contact Investor.Relations@abrdn.com
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For More Information Contact:
abrdn U.S. Closed-End Funds
Investor Relations
1-800-522-5465
Investor.Relations@abrdn.com
SOURCE: abrdn Income Credit Strategies Fund
View the original press release on accesswire.com
FAQ
When is the closing date for ACP's acquisition of assets from FSD?
What happens to FSD shares after the reorganization?
What are the benefits of the reorganization for ACP shareholders?
What is the expected net asset value of ACP after the reorganization?
When will ACP pay the announced distribution?
