Invesco Senior Income Trust Announces Private Placement of Two Series of Variable Rate Demand Mode Preferred Shares

Rhea-AI Summary

Invesco Senior Income Trust (NYSE: VVR) has completed a private placement of Variable Rate Demand Mode Preferred Shares (VRDMs) with qualified institutional buyers. The fund issued two series: $50 million each in Series A and Series B VRDMs, totaling $100 million. The proceeds were used to redeem outstanding Variable Rate Demand Preferred Shares Series W-7. Both new series have a term redemption date of November 1, 2034, with weekly dividend rates set by the fund's remarketing agent. The VRDMs include a liquidity feature and are senior to common shares but junior to fund borrowings.

Positive

• Successfully secured $100 million in new financing through VRDM issuance
• New VRDMs include liquidity feature providing additional security for holders

Negative

• Mandatory redemption requirement by November 1, 2034 creates future financial obligation
• Weekly dividend rates subject to maximum rate increases during unsuccessful remarketing periods

ATLANTA, Oct. 25, 2024 /PRNewswire/ -- Invesco Senior Income Trust (NYSE: VVR), a diversified, closed-end management investment company, announced today the successful pricing and private placement of Variable Rate Demand Mode Preferred Shares (VRDMs), Series A and Series B, with qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933, as amended (Securities Act).  The Fund issued $50,000,000 in aggregate liquidation preference of Series A VRDMs and $50,000,000 in aggregate liquidation preference of Series B VRDMs and used the proceeds of the issuances to contemporaneously redeem its outstanding Variable Rate Demand Preferred Shares (VRDPs), Series W-7, with an aggregate liquidation preference of $100,000,000, in full.

The Series A and Series B VRDMs have a term redemption date of November 1, 2034, upon which the VRDMs are subject to mandatory redemption by the Fund.  Dividends on the Series A and Series B VRDMs are set weekly at a rate established by the Fund's remarketing agent, subject to a maximum rate that will increase over time in the event of an extended period of unsuccessful remarketing.  Each Series of VRDMs includes a liquidity feature provided by a liquidity provider that allows a holder of the VRDMs to have its shares purchased by the liquidity provider in the event that a sell order by the holder has not been matched with a purchase order and successfully settled in a remarketing.

The Series A and Series B VRDMs are preferred shares of the Fund and are senior, with priority in all respects, to the Fund's common shares in liquidation and as to the payment of dividends; the VRDMs of each Series rank junior to borrowings of the Fund and on parity with each other.

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This communication does not constitute an offer for sale of any securities.  No VRDMs have been registered under the Securities Act or any state securities laws.  Unless so registered, no VRDMs may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.  Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities.  With offices in more than 20 countries, Invesco managed $1.795 trillion in assets on behalf of clients worldwide as of September 30, 2024.  For more information, visit www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products.  Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities.  Each entity is a wholly owned indirect subsidiary of Invesco Ltd.

Note:  There is no assurance that a closed-end fund will achieve its investment objective.  Common shares are bought on the secondary market and may trade at a discount or premium to net asset value.  Regular brokerage commissions apply.

NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY A BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

CONTACT: Closed-End Funds; 1-800-341-2929

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SOURCE Invesco Ltd.

FAQ

How much did Invesco Senior Income Trust (VVR) raise in its VRDM private placement?

Invesco Senior Income Trust raised $100 million total through two series of VRDMs, with $50 million each in Series A and Series B.

When is the term redemption date for VVR's new Series A and B VRDMs?

The Series A and B VRDMs have a term redemption date of November 1, 2034, when they are subject to mandatory redemption by the Fund.

What did Invesco Senior Income Trust (VVR) do with the VRDM proceeds?

VVR used the proceeds to redeem its outstanding Variable Rate Demand Preferred Shares (VRDPs), Series W-7, which had an aggregate liquidation preference of $100 million.