Boulder Growth & Income Fund, Inc. Announces $225 Million Issuance of Senior Unsecured Notes

Rhea-AI Summary

Boulder Growth & Income Fund (NYSE: BIF) announced the issuance of $225 million in senior unsecured notes on November 5, 2020. The notes, which are offered in three series with maturities of 10, 12, and 15 years, received an 'A' rating from Fitch Ratings. Interest rates are set at 2.62%, 2.72%, and 2.87%, payable semi-annually starting May 5, 2021. Proceeds will be utilized for new portfolio investments and corporate purposes. This move is intended to leverage favorable interest rates and market opportunities for the benefit of shareholders.

Positive

• $225 million raised through the issuance of senior unsecured notes.
• Notes rated 'A' by Fitch Ratings, indicating strong credit quality.
• Interest rates of 2.62%, 2.72%, and 2.87% are attractive in the current market environment.
• Funds will be used for new portfolio investments, potentially enhancing shareholder value.

Negative

• The Fund's shares are trading at an -18.87% discount to NAV as of October 28, 2020.

DENVER, Nov. 5, 2020 /PRNewswire/ -- Boulder Growth & Income Fund, Inc. (NYSE: BIF) (the Fund) announced that it agreed to issue and sell an aggregate principal amount of $225 million of senior unsecured notes (Notes) in a private placement to certain "accredited investors" pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. 

An aggregate principal amount of $225 million of the Notes was issued on November 5, 2020, in three series with maturities of 10-, 12-, and 15-years.  Fitch Ratings assigned long term ratings of "A" to each series of Notes on November 5, 2020. 

"The successful issuance of these Notes provides Fund shareholders with an opportunity to benefit from the current interest rate environment and opportunities that present themselves in the market," said Joel Looney, President and Portfolio Manager of the Fund, and President and Assistant Investment Officer of Rocky Mountain Advisers, LLC (RMA), sub-adviser to the Fund.  Looney continued, "With its disciplined investment philosophy, RMA will attempt to take advantage of market volatility to benefit Fund shareholders."

The 10-, 12-, and 15-year series will pay interest semi-annually at the rate of 2.62%, 2.72%, and 2.87%, respectively.  Interest on the Notes is payable semiannually, on the 5^th day of May and November in each year, commencing on May 5, 2021. The proceeds from the Notes will be used for making new portfolio investments and for general corporate purposes. 

"The success of this transaction is a testament to the prudent investment discipline of the Fund's portfolio management," said Laton Spahr, President of ALPS Advisors, Inc., investment adviser to the Fund.  He continued, "We believe the opportunity for the Fund to issue long term notes at attractive rates has the potential to accrue to the benefit of Fund shareholders."

Notes Issuance Total Principal by Series
Series	$85 Million 10-year Bullet Notes Due November 5, 2030
	$85 Million 12-year Bullet Notes Due November 5, 2032
	$55 Million 15-year Bullet Notes Due November 5, 2035

The Notes will not be and have not been registered under the Securities Act or any state securities laws and may not be offered or sold absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Except for the historical information and discussions contained herein, certain statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as, "achieve", "anticipate", "assume", "believe", "continue", "current", "estimate", "expect", "forecast", "future", "indicate", "intend", "intention", "likely", "maintain", "opportunity", "outlook", "plan", "position", "potential", "predict", "project", "remain", "seek", "sustain", "target", "trend" or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Actual future results or occurrences could differ materially from those anticipated in any forward-looking statements and future results could differ materially from historical performance. Such risks and uncertainties include, but are not limited to: market developments; legal and regulatory developments; and other additional risks and uncertainties.  Forward-looking statements speak only as of the date they are made, and the Fund and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.

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The Fund

Boulder Growth & Income Fund, Inc. is a non-diversified closed-end investment company traded on the New York Stock Exchange under the trading symbol "BIF". As of October 28, 2020, the Fund's NAV was $11.71 per share and the closing market price was $9.50 (a -18.87% discount to NAV). For more information on the Fund, please visit the Fund's webpage at www.bouldercef.com. The

Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value.

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About SS&C | ALPS Advisors

SS&C ALPS Advisors, Inc., a wholly-owned subsidiary of SS&C Technologies, Inc., is a leading provider of investment products for advisors and institutions. Headquartered in Denver, CO with over $12 billion under management as of September 30, 2020, ALPS Advisors is an open architecture boutique investment manager offering portfolio building blocks, active insight, and an unwavering drive to guide clients to investment outcomes across sustainable income, thematic and alternative growth strategies. For more information, visit www.alpsfunds.com/.

About SS&C Technologies 

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Rocky Mountain Advisers, LLC 

RMA is an investment adviser registered with the SEC based out of Kansas. More information about RMA is available at www.bouldercef.com as well as the SEC's investment adviser search website at www.adviserinfo.sec.gov.

ALPS Portfolio Solutions Distributor, Inc., FINRA Member.

NOT FDIC INSURED | May Lose Value | No Bank Guarantee

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SOURCE Boulder Growth & Income Fund, Inc.

FAQ

What are the terms of the senior unsecured notes issued by BIF?

BIF issued $225 million in senior unsecured notes across three series with maturities of 10, 12, and 15 years, and interest rates of 2.62%, 2.72%, and 2.87%.

When will the interest on BIF's notes be paid?

Interest on the notes will be paid semi-annually on May 5 and November 5, starting May 5, 2021.

What was the purpose of the $225 million notes issuance by BIF?

The proceeds from the notes will be used for making new portfolio investments and for general corporate purposes.

How does the issuance of notes affect BIF shareholders?

The issuance is aimed at providing shareholders with opportunities to benefit from the current interest rate environment.

What was the NAV of BIF as of October 28, 2020?

As of October 28, 2020, BIF's NAV was $11.71 per share.