abrdn Income Credit Strategies Fund Announces Update and Tentative Closing Date for Acquisition of Assets From First Trust High Income Long/Short Fund
The abrdn Income Credit Strategies Fund (NYSE:ACP) announced the approval of the reorganization of the First Trust High Income Long/Short Fund (NYSE:FSD) into ACP. The reorganization is expected to complete by the end of July 2024, subject to customary closing conditions. Following the reorganization, FSD shareholders will receive new ACP shares based on the net asset values. The combined net assets will approximate $765 million. Benefits include economies of scale, increased fund viability, liquidity, and marketability.
- Shareholders approved the reorganization of FSD into ACP.
- Reorganization expected to complete by end of July 2024.
- Combined net assets will be approximately $765 million post-reorganization.
- Fund anticipated to realize economies of scale.
- Increased scale, liquidity, and marketability of the combined fund.
- Completion subject to satisfaction of customary closing conditions.
- FSD shares will cease trading on NYSE, date to be announced.
- Potential risks as fund shares may trade above or below NAV.
- No assurance that the combined fund will achieve its investment objectives.
- Reorganization involves uncertainty, as past performance does not guarantee future results.
Insights
The proposed reorganization between abrdn Income Credit Strategies Fund (ACP) and First Trust High Income Long/Short Fund (FSD) represents a strategic move to consolidate assets, which would result in a combined net asset value of approximately
However, retail investors should be cognizant of the fact that shares of closed-end funds can trade at a premium or discount to their net asset value (NAV). Post-reorganization, the market's perception of the combined fund's value may fluctuate and there is no assurance that the fund will achieve its investment objectives. Retail investors should also be aware that such organizational changes might involve costs that could be passed on to shareholders.
In the short-term, the announcement might lead to speculative trading in both ACP and FSD stocks as investors anticipate the reorganization. Long-term investors should consider the potential benefits of increased scale and efficiency against the inherent risks associated with such structural changes.
PHILADELPHIA, PA / ACCESSWIRE / May 31, 2024 / The Board of Trustees of abrdn Income Credit Strategies Fund (NYSE:ACP), announces today 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") which is targeted to be completed before the end of July or as soon as practicable thereafter, subject to the satisfaction of customary closing conditions.
To facilitate the Reorganization, all shares of FSD will cease trading on the New York Stock Exchange as of date to be announced in the coming weeks and FSD shareholders will be issued new issued shares of ACP. The Reorganization will occur based on the relative net asset values of the common shares of FSD. As of May 30, 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., abrdn Asia Limited, Aberdeen Capital Management, LLC 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. 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 U.S. Closed-End Funds
View the original press release on accesswire.com
FAQ
What is the expected completion date for the ACP and FSD reorganization?
What will happen to FSD shares after the reorganization?
What are the combined net assets expected after the ACP and FSD reorganization?
What benefits are anticipated from the ACP and FSD reorganization?
Will FSD shares continue to trade on NYSE post-reorganization?
