First Trust/Aberdeen Global Opportunity Income Fund Announces Final Results of Tender Offer

Rhea-AI Summary

First Trust/Aberdeen Global Opportunity Income Fund (NYSE: FAM) announced the final results of its oversubscribed tender offer for up to 20% of its outstanding common shares. The offer, which closed on February 12, 2021, will purchase 2,534,207 shares at $10.7604 each, reflecting 98% of the net asset value (NAV) as of February 16, 2021. Due to high demand, shares will be bought on a pro-rata basis with a pro-ration factor of 46.50%. Post-offer, the total outstanding shares will be 10,136,829. Shareholders can contact Georgeson LLC for inquiries.

Positive

• Oversubscribed tender offer indicates strong investor interest.
• Fund will buy back 20% of common shares, potentially increasing shareholder value.
• Pro-rata purchase ensures fairness among shareholders.

Negative

• High pro-ration factor (46.50%) means not all tendered shares will be purchased.

First Trust/Aberdeen Global Opportunity Income Fund (NYSE: FAM) (the “Fund”) today announced the final results of the tender offer it conducted.

As previously announced, the Fund conducted a tender offer for up to 20% of its outstanding common shares for cash at a price per share equal to 98% of the net asset value per share as determined as of the close of the regular trading session of the NYSE on February 16, 2021 (the “Valuation Date”). The Fund’s tender offer, which expired at 5:00 p.m. New York City time on Friday, February 12, 2021, was oversubscribed.

Since the Fund’s tender offer was oversubscribed, the Fund will purchase 20% of its outstanding common shares on a pro-rata basis based on the number of shares properly tendered (Pro-Ration Factor). The final results of the tender offer are provided in the table below.

Number of Shares Tendered		Number of Tendered Shares to be Purchased		Pro- Ration Factor		Purchase Price (98% of NAV on Valuation Date)		Number of Outstanding Shares after Tender Offer
5,450,859		2,534,207		46.50%		$10.7604		10,136,829

The Fund will purchase the common shares that it has accepted for payment as promptly as practicable. Shareholders who have questions regarding the tender offer should contact their financial advisors or should call Georgeson LLC, the Fund’s information agent for the tender offer, at: (888) 680-1528.

The Fund is a diversified, closed-end management investment company that seeks to provide a high level of current income. As a secondary objective, the Fund seeks capital appreciation. The Fund pursues these investment objectives by investing in the world bond markets through a diversified portfolio of investment grade and below-investment grade government and corporate debt securities.

First Trust Advisors L.P., the Fund’s investment advisor, along with its affiliate, First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $174 billion as of January 31, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.

Aberdeen Standard Investments Inc. (“ASII”) serves as the Fund’s investment sub-advisor. ASII is an indirect wholly-owned subsidiary of Standard Life Aberdeen plc. Aberdeen Standard Investments is the brand name for the asset management group of Standard Life Aberdeen plc, managing a range of pension funds, financial institutions, investment trusts, unit trusts, offshore funds, charities and private clients.

FORWARD-LOOKING STATEMENTS

Certain statements made in this press release are forward-looking statements. Actual results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors.

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FAQ

What are the results of the First Trust/Aberdeen Global Opportunity Income Fund's tender offer?

The tender offer was oversubscribed, and the fund will purchase 2,534,207 shares at $10.7604 each.

What was the pro-ration factor in the FAM tender offer?

The pro-ration factor was 46.50%, meaning only a portion of the tendered shares will be accepted.

When did the tender offer for FAM shares expire?

The tender offer expired on February 12, 2021.

How much of its outstanding shares is FAM purchasing in the tender offer?

The fund is purchasing up to 20% of its outstanding common shares.

What is the purchase price per share for the FAM tender offer?

The purchase price is set at $10.7604, which is 98% of the net asset value as of the valuation date.