abrdn Income Credit Strategies Fund Announces Closing Date for Acquisition of Assets From First Trust/abrdn Global Opportunity Income Fund
The Board of Trustees of abrdn Income Credit Strategies Fund (NYSE:ACP) has announced that the previously approved reorganization with First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) is expected to close on September 20, 2024. FAM shares will cease trading on the NYSE at market close on that date, and FAM shareholders will receive newly issued ACP shares based on relative net asset values. The combined fund's net assets are estimated to be approximately $845 million as of August 21, 2024.
This reorganization aims to benefit shareholders by realizing economies of scale, increasing the fund's scale, liquidity, and marketability. The move is expected to ensure the viability of the resulting combined fund and provide greater opportunities for shareholders.
Il Consiglio di Amministrazione del abrdn Income Credit Strategies Fund (NYSE:ACP) ha annunciato che la riorganizzazione precedentemente approvata con il First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) dovrebbe concludersi il 20 settembre 2024. Le azioni di FAM smetteranno di essere negoziate sulla NYSE alla chiusura del mercato in quella data, e gli azionisti di FAM riceveranno azioni ACP di nuova emissione basate sui valori patrimoniali netti relativi. Gli attivi netti del fondo combinato sono stimati essere circa 845 milioni di dollari al 21 agosto 2024.
Questa riorganizzazione ha l'obiettivo di beneficiare gli azionisti attraverso realizzazione di economie di scala, aumentando la dimensione, la liquidità e la commerciabilità del fondo. Si prevede che questa mossa garantisca la sostenibilità del fondo combinato risultante e offra maggiori opportunità agli azionisti.
El Consejo de Administración del abrdn Income Credit Strategies Fund (NYSE:ACP) ha anunciado que la reorganización previamente aprobada con el First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) se espera que se cierre el 20 de septiembre de 2024. Las acciones de FAM dejarán de cotizar en la NYSE al cierre del mercado en esa fecha, y los accionistas de FAM recibirán acciones recién emitidas de ACP basadas en los valores relativos de los activos netos. Se estima que los activos netos del fondo combinado serán aproximadamente 845 millones de dólares al 21 de agosto de 2024.
Esta reorganización tiene como objetivo beneficiar a los accionistas al realizar economías de escala, aumentando la escala, liquidez y comercialización del fondo. Se espera que esta medida garantice la viabilidad del fondo combinado resultante y ofrezca mayores oportunidades a los accionistas.
abrdn Income Credit Strategies Fund (NYSE:ACP)의 이사회는 First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM)와의 재편성에 대해 이전에 승인된 내용이 2024년 9월 20일에 마감될 것으로 예상된다고 발표했습니다. FAM 주식은 해당 날짜의 시장 마감 시 NYSE에서 거래가 중단되며, FAM 주주들은 상대적 순 자산 가치를 기준으로 새로 발행된 ACP 주식을 받을 것입니다. 합산된 펀드의 순 자산은 2024년 8월 21일 현재 약 8억 4500만 달러로 추정됩니다.
이번 재편성은 규모의 경제 실현을 통해 주주들에게 혜택을 주는 것을 목적으로 하며, 펀드의 규모, 유동성 및 시장성을 증가시킵니다. 이 조치는 발생할 결합된 펀드의 지속 가능성을 보장하고 주주들에게 더 많은 기회를 제공할 것으로 예상됩니다.
Le Conseil d'Administration du abrdn Income Credit Strategies Fund (NYSE:ACP) a annoncé que la réorganisation précédemment approuvée avec le First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) devrait se conclure le 20 septembre 2024. Les actions de FAM cesseront d'être négociées à la NYSE à la clôture du marché à cette date, et les actionnaires de FAM recevront de nouvelles actions ACP émises en fonction des valeurs nettes d'actifs relatives. Les actifs nets du fonds combiné sont estimés à environ 845 millions de dollars au 21 août 2024.
Cette réorganisation vise à bénéficier aux actionnaires en réalisant des économies d'échelle, augmentant ainsi la taille, la liquidité et la commercialité du fonds. Ce mouvement devrait garantir la viabilité du fonds combiné résultant et offrir de meilleures opportunités aux actionnaires.
Der Vorstand des abrdn Income Credit Strategies Fund (NYSE:ACP) hat bekannt gegeben, dass die zuvor genehmigte Reorganisation mit dem First Trust/abrdn Global Opportunity Income Fund (NYSE:FAM) voraussichtlich am 20. September 2024 abgeschlossen wird. Die FAM-Aktien werden an diesem Tag zum Marktschluss an der NYSE nicht mehr gehandelt, und die FAM-Aktionäre erhalten neu ausgegebene ACP-Aktien basierend auf den relativen Nettovermögenswerten. Die Nettoaktiva des kombinierten Fonds werden zum 21. August 2024 auf etwa 845 Millionen Dollar geschätzt.
Diese Reorganisation zielt darauf ab, den Aktionären durch Realisation von Skaleneffekten Vorteile zu bieten, indem die Größe, Liquidität und Marktfähigkeit des Fonds erhöht wird. Es wird erwartet, dass dieser Schritt die Tragfähigkeit des resulting kombinierten Fonds gewährleistet und den Aktionären größere Chancen bietet.
- Increased fund size to approximately $845 million in combined net assets
- Potential for economies of scale, which could lead to cost savings
- Enhanced liquidity and marketability of the combined fund
- Improved viability of the resulting fund due to increased scale
- None.
Insights
The closing of this $845 million fund merger is a significant event in the closed-end fund space. The consolidation aims to achieve economies of scale, which could potentially lead to lower expense ratios for shareholders. However, it's important to note that the merger is occurring at net asset value (NAV), which means there's no immediate arbitrage opportunity for investors.
The cessation of FAM's trading on September 20, 2024, may cause temporary liquidity issues for its shareholders. Post-merger, ACP's increased size could potentially improve trading liquidity and reduce bid-ask spreads, benefiting investors. However, investors should monitor how the fund's discount/premium to NAV evolves post-merger, as larger funds don't always trade at better valuations.
This merger reflects a broader trend of consolidation in the asset management industry, particularly in the closed-end fund sector. The drive for scale is partly a response to fee pressures and the shift towards passive investing. While the combined fund may offer enhanced liquidity, investors should be aware that larger funds can sometimes struggle to maintain performance due to reduced flexibility in deploying capital.
The merger's impact on yield will be a key factor for income-focused investors to watch. If the combined fund can maintain or improve its distribution rate while reducing expenses, it could attract more investor interest. However, any significant changes in investment strategy or asset allocation post-merger could affect the fund's risk-return profile.
PHILADELPHIA, PA / ACCESSWIRE / August 22, 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/abrdn Global Opportunity Income Fund (NYSE:FAM) ("FAM" 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 September 20, 2024, or as soon as practicable thereafter, subject to the satisfaction of customary closing conditions.
To facilitate the Reorganization, it is expected that all shares of FAM will cease trading on the New York Stock Exchange as of the market close on September 20, 2024, and FAM shareholders will be issued newly issued shares of ACP. The Reorganization will occur based on the relative net asset values of the common shares of FAM, with a value equal to the aggregate net asset value of the shares of FAM held by them. The Reorganization will occur based on the relative net asset values of the common shares of FAM. As of August 21, 2024, the combined net assets of ACP following the Reorganization will be approximately
The Reorganization is expected to benefit each fund's shareholders in a number of important ways, 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.
Important Information
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited.
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. Each 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 each 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
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