abrdn Asia-Pacific Income Fund, Inc. (FAX) Announces Issuance Of Series B Mandatory Redeemable Preferred Shares
abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) has announced the closing of a private offering of 4 million shares of Series B Mandatory Redeemable Preferred Shares due 2029. The Series B MRPS, with a liquidation value of $100 million, are rated AA- by Kroll Bond Rating Agency. Net proceeds will be used for new portfolio investments, refinancing or repayment of existing debt, and general purposes.
The Fund's current leverage includes a $100 million 364-day Syndicated Revolving Credit Facility maturing July 30, 2025, and various Senior Secured Notes. The strategic use of leverage is beneficial to the Fund's income generation due to the positive interest-rate differential. Management remains optimistic about diverse fixed income investment opportunities in the Asia-Pacific region.
abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) ha annunciato la chiusura di un'offerta privata di 4 milioni di azioni di Azioni Preferenziali Rimborsabili Obbligatorie di Serie B con scadenza nel 2029. Le Azioni Preferenziali di Serie B, con un valore di liquidazione di 100 milioni di dollari, sono valutate AA- dalla Kroll Bond Rating Agency. I proventi netti saranno utilizzati per nuovi investimenti in portafoglio, rifinanziamento o rimborso del debito esistente, e per scopi generali.
Il leverage attuale del Fondo include una Linea di Credito Rotativa Sindacata di 100 milioni di dollari per 364 giorni che scade il 30 luglio 2025, e vari Obbligazioni Senior Garantite. L'uso strategico del leverage è vantaggioso per la generazione di reddito del Fondo grazie al differenziale positivo dei tassi d'interesse. La direzione rimane ottimista riguardo alle opportunità di investimento in reddito fisso diversificate nella regione Asia-Pacifico.
abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) ha anunciado el cierre de una oferta privada de 4 millones de acciones de Acciones Preferentes Obligatoriamente Redimibles Serie B con vencimiento en 2029. Las acciones preferentes de la Serie B, con un valor de liquidación de 100 millones de dólares, están calificadas con AA- por Kroll Bond Rating Agency. Los ingresos netos se utilizarán para nuevas inversiones de cartera, refinanciación o reembolso de la deuda existente y para fines generales.
El apalancamiento actual del Fondo incluye una Facilidad de Crédito Revolvente Sindicada de 100 millones de dólares a 364 días que vence el 30 de julio de 2025, y varias Notas Senior Garantizadas. El uso estratégico del apalancamiento es beneficioso para la generación de ingresos del Fondo debido al diferencial positivo de tasas de interés. La gestión se mantiene optimista sobre las diversas oportunidades de inversión en renta fija en la región de Asia-Pacífico.
abrdn 아시아 태평양 소득 펀드, Inc. (NYSE MKT:FAX)가 2029년 만기인 시리즈 B 의무 상환 우선주 400만 주에 대한 비공식 감사를 마무리했다고 발표했습니다. 1억 달러의 청산 가치를 가진 시리즈 B MRPS는 Kroll Bond Rating Agency에 의해 AA- 등급을 받았습니다. 순수익은 새로운 포트폴리오 투자, 기존 부채의 재융자 또는 상환, 그리고 일반 목적에 사용될 예정입니다.
펀드의 현재 레버리지는 2025년 7월 30일 만기가 되는 하나의 1억 달러, 364일 기한의 총신용 한도와 다양한 선순위 보안 채권을 포함합니다. 레버리지의 전략적 사용은 긍정적인 이자율 차이로 인해 펀드의 수익 창출에 유리합니다. 경영진은 아시아 태평양 지역의 다양한 고정 수입 투자 기회에 대해 낙관적으로 남아 있습니다.
abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) a annoncé la clôture d'une offre privée de 4 millions d'actions de Actions Privilégiées Remboursables Obligatoires de Série B arrivant à échéance en 2029. Les Actions Privilégiées de Série B, avec une valeur de liquidation de 100 millions de dollars, sont notées AA- par Kroll Bond Rating Agency. Les produits nets seront utilisés pour de nouveaux investissements de portefeuille, le refinancement ou le remboursement de la dette existante, et à des fins générales.
Le levier actuel du Fonds comprend un Prêt Syndiqué Revolving de 100 millions de dollars sur 364 jours arrivant à échéance le 30 juillet 2025, ainsi que diverses Obligations Sécurisées Senior. L'utilisation stratégique du levier est bénéfique pour la génération de revenus du Fonds en raison du différentiel de taux d'intérêt positif. La direction reste optimiste quant aux diverses opportunités d'investissement en revenu fixe dans la région Asie-Pacifique.
abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) hat den Abschluss einer privaten Angebotsrunde von 4 Millionen Serie B widerrufbaren Vorzugsaktien mit Fälligkeit im Jahr 2029 bekannt gegeben. Die Serie B MRPS, mit einem Liquidationswert von 100 Millionen Dollar, sind mit AA- von der Kroll Bond Rating Agency bewertet. Der Nettoproceeds werden für neue Portfolioinvestitionen, Refinanzierungen oder Rückzahlung bestehender Schulden sowie für allgemeine Zwecke verwendet.
Die aktuelle Verschuldung des Fonds umfasst eine 100-Millionen-Dollar, 364-tägige syndizierte revolvierende Kreditfazilität, die am 30. Juli 2025 fällig wird, sowie verschiedene vorrangige gesicherte Anleihen. Der strategische Einsatz von Leverage ist vorteilhaft für die Einkommensgenerierung des Fonds aufgrund des positiven Zinsdifferenzials. Die Geschäftsleitung bleibt optimistisch hinsichtlich der vielfältigen festverzinslichen Investitionsmöglichkeiten in der Asien-Pazifik-Region.
- Successful closing of $100 million Series B Mandatory Redeemable Preferred Shares offering
- AA- rating from Kroll Bond Rating Agency for the Series B MRPS
- Strategic use of leverage beneficial for income generation due to positive interest-rate differential
- Management's optimism about diverse fixed income investment opportunities in the Asia-Pacific region
- Increased leverage may pose higher financial risk
Insights
The issuance of
The Fund's total leverage now stands at approximately
For investors, this could lead to enhanced income streams, but it's important to monitor how efficiently the Fund utilizes this additional capital. The private placement nature of the offering also indicates the Fund's ability to access institutional capital markets, which is generally a positive signal.
The closed-end fund market has been facing challenges with persistent discounts to NAV and FAX is no exception. This leverage strategy could be seen as a way to enhance returns and potentially narrow the discount gap. The Fund's approach to using a mix of short-term (revolving credit facility) and long-term (MRPS and Senior Secured Notes) leverage instruments demonstrates a balanced approach to capital structure management.
The Asia-Pacific fixed income market presents unique opportunities, especially given the varying economic cycles and monetary policies across the region. FAX's increased leverage positions it to potentially capitalize on these opportunities more aggressively. However, investors should be aware that increased leverage also amplifies risks, particularly in a volatile market environment.
The
PHILADELPHIA, PA / ACCESSWIRE / October 3, 2024 / abrdn Asia-Pacific Income Fund, Inc. (NYSE MKT:FAX) (the "Fund"), a closed-end fund, today announced the closing of a private offering of 4 million shares of Series B Mandatory Redeemable Preferred Shares due 2029 (the "Series B MRPS"). The Series B MRPS, with a liquidation value of
The table below summarizes certain key terms of the Fund's current leverage:
| Amount ($ in millions) | KBRA Rating | Maturity |
364- day Syndicated Revolving Credit Facility |
| July 30, 2025 | |
5-year Series B Mandatory Redeemable Preferred Shares | AA- | October 3, 2029 | |
15-year Series C Senior Secured Notes | AAA | February 8, 2032 | |
15-year Series D Senior Secured Notes | AAA | August 10, 2032 | |
15-year Series E Senior Secured Notes | AAA | June 19, 2034 |
1Currently drawn at
The Fund's strategic use of leverage is beneficial to the income generated by the Fund due to the positive interest-rate differential between the interest earned and the cost of leverage. Management remains optimistic that the diverse fixed income investment opportunities in the Asia-Pacific region will be well sustained and remain well placed to deliver on its investment objectives.
The Series B MRPS are not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
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.
Closed-end funds are traded on the secondary market through one of the stock exchanges. A 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 a Fund will achieve its investment objective. Past performance does not guarantee future results.
Kroll Bond Rating Agency (KBRA) long-term credit ratings are expressed as letter grades that range from "AAA" to "D" to communicate the agency's opinion of relative level of credit risk. Ratings from ‘AA' to ‘CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories. The investment grade category is a rating from AAA to BBB-.
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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 Asia-Pacific Income Fund, Inc.
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FAQ
What is the liquidation value of FAX's Series B Mandatory Redeemable Preferred Shares?
When do FAX's Series B Mandatory Redeemable Preferred Shares mature?
What is the credit rating of FAX's Series B Mandatory Redeemable Preferred Shares?
How will FAX use the net proceeds from the Series B MRPS offering?
