The New America High Income Fund, Inc. Announces Proposed Reorganization and Agreement with Saba Capital
The New America High Income Fund, Inc. (NYSE: HYB) has announced a proposed reorganization into the T. Rowe Price High Yield Fund, subject to shareholder approval at the Annual Meeting in November 2024. The Fund's Board of Directors has approved this proposal, and shareholders will receive a combined proxy statement and prospectus with detailed information in Q3 or Q4 2024.
Additionally, the Fund has entered into a standstill agreement with Saba Capital Management, L.P. Under this agreement, the Board will work to secure shareholder approval for the reorganization, while Saba has agreed to withdraw its director nominations and vote in favor of the reorganization and director elections.
Il New America High Income Fund, Inc. (NYSE: HYB) ha annunciato una proposta di riorganizzazione nel T. Rowe Price High Yield Fund, soggetta all'approvazione degli azionisti durante l'Assemblea Annuale prevista per novembre 2024. Il Consiglio di Amministrazione del Fondo ha approvato questa proposta e gli azionisti riceveranno un documento combinato di delega e prospetto con informazioni dettagliate nel terzo o quarto trimestre del 2024.
Inoltre, il Fondo ha stipulato un accordo di standstill con Saba Capital Management, L.P. In base a questo accordo, il Consiglio lavorerà per ottenere l'approvazione degli azionisti per la riorganizzazione, mentre Saba ha accettato di ritirare le proprie nomination per il direttivo e di votare a favore della riorganizzazione e delle elezioni dei direttori.
El New America High Income Fund, Inc. (NYSE: HYB) ha anunciado una propuesta de reorganización en el T. Rowe Price High Yield Fund, sujeta a la aprobación de los accionistas en la Junta Anual en noviembre de 2024. La Junta Directiva del Fondo ha aprobado esta propuesta, y los accionistas recibirán una declaración de poder combinada con un prospecto que contendrá información detallada en el tercer o cuarto trimestre de 2024.
Además, el Fondo ha llegado a un acuerdo de standstill con Saba Capital Management, L.P. Según este acuerdo, la Junta trabajará para asegurar la aprobación de los accionistas para la reorganización, mientras que Saba ha acordado retirar sus nominaciones para el directorio y votar a favor de la reorganización y de las elecciones de los directores.
뉴 아메리카 고수익 펀드 주식회사 (NYSE: HYB)는 주주 승인을 조건으로 T. 로우 프라이스 하이 일드 펀드로의 재편성 제안을 발표했습니다. 이 제안은 2024년 11월 연례 회의에서 승인될 예정입니다. 펀드의 이사회는 이 제안을 승인했으며, 주주들은 2024년 3분기 또는 4분기에 상세한 정보가 포함된 통합 위임장 및 설명서를 받을 것입니다.
또한, 펀드는 Saba Capital Management, L.P.와 정지 합의를 체결했습니다. 이 합의에 따라 이사회는 재편성을 위한 주주 승인을 확보하기 위해 노력할 것이며, Saba는 이사 후보 지명을 철회하고 재편성과 이사 선임에 찬성 투표를 하기로 합의했습니다.
Le New America High Income Fund, Inc. (NYSE: HYB) a annoncé une proposition de réorganisation au sein du T. Rowe Price High Yield Fund, soumise à l'approbation des actionnaires lors de l'Assemblée Annuelle en novembre 2024. Le Conseil d'Administration du Fonds a approuvé cette proposition, et les actionnaires recevront un document de procuration et un prospectus combinés contenant des informations détaillées au troisième ou quatrième trimestre de 2024.
De plus, le Fonds a conclu un accord de gel avec Saba Capital Management, L.P. Dans le cadre de cet accord, le Conseil travaillera à obtenir l'approbation des actionnaires pour la réorganisation, tandis que Saba a accepté de retirer ses nominations pour le conseil d'administration et de voter en faveur de la réorganisation et des élections des administrateurs.
Der New America High Income Fund, Inc. (NYSE: HYB) hat eine vorgeschlagene Reorganisation in den T. Rowe Price High Yield Fund angekündigt, die der Genehmigung der Aktionäre auf der Hauptversammlung im November 2024 unterliegt. Der Vorstand des Fonds hat diesen Vorschlag genehmigt und die Aktionäre werden im dritten oder vierten Quartal 2024 eine kombinierte Vollmachts- und Verkaufsunterlage mit detaillierten Informationen erhalten.
Darüber hinaus hat der Fonds eine Stillhaltevereinbarung mit Saba Capital Management, L.P. getroffen. Im Rahmen dieser Vereinbarung wird der Vorstand daran arbeiten, die Genehmigung der Aktionäre für die Reorganisation zu sichern, während Saba zugestimmt hat, seine Direktoren-Nominierungen zurückzuziehen und für die Reorganisation sowie die Wahl der Direktoren zu stimmen.
- Proposed reorganization into T. Rowe Price High Yield Fund, potentially offering new opportunities for shareholders
- Standstill agreement with Saba Capital Management, reducing potential conflicts and ensuring support for the reorganization
- Reorganization subject to shareholder approval, introducing uncertainty
- Potential changes in fund structure and management may affect existing shareholders
Insights
This proposed reorganization of The New America High Income Fund (HYB) into the T. Rowe Price High Yield Fund is a significant development for shareholders. The move could potentially lead to economies of scale, lower expense ratios and enhanced liquidity for investors. However, it's important to examine the fee structures and investment strategies of both funds to assess the true impact.
The agreement with Saba Capital is noteworthy, as it suggests the activist investor sees value in this reorganization. This could indicate potential synergies or improved fund management. Shareholders should closely review the upcoming proxy statement for detailed information on how this reorganization might affect their investment objectives and risk exposure.
The proposed reorganization of HYB into the T. Rowe Price High Yield Fund raises several legal and regulatory considerations. Shareholders' rights are protected through the voting process, as mandated by the Investment Company Act. The standstill agreement with Saba Capital is a strategic move to ensure a smooth transition and avoid potential proxy fights.
Investors should pay close attention to the combined proxy statement and prospectus for full disclosure of the terms and potential impacts of the reorganization. The SEC filing will provide important information on any changes in fund governance, investment policies and shareholder rights. This transparency is essential for shareholders to make an informed decision at the upcoming Annual Meeting.
This reorganization could significantly impact the high-yield bond fund landscape. The merger of HYB into the larger T. Rowe Price High Yield Fund may create a more competitive entity in the market. Investors should consider how this consolidation might affect fund performance, yield and market positioning.
The involvement of Saba Capital, known for its activist approach, suggests potential for value unlocking in the fund. Their agreement to support the reorganization indicates confidence in the proposed structure. However, shareholders should analyze how this might influence the fund's investment strategy and risk profile going forward. The market's reaction to this news could provide insights into the perceived benefits of the reorganization.
BOSTON, Aug. 08, 2024 (GLOBE NEWSWIRE) -- The New America High Income Fund, Inc. (the “Fund”) (NYSE: HYB) announced today that the Fund’s Board of Directors has approved a proposal to reorganize the Fund into the T. Rowe Price High Yield Fund, a separate series of the T. Rowe Price High Yield Fund, Inc. The reorganization is subject to approval by Fund shareholders, who will be asked to vote on the proposal at the Fund’s Annual Meeting of Shareholders expected to take place in November 2024 (the “Meeting”).
Important information about the proposed reorganization and the Meeting will be provided to shareholders of record as of the record date in a combined proxy statement and prospectus that is expected to be mailed in the third or fourth quarter of 2024. Shareholders are advised to read the combined proxy statement and prospectus when it is available. When filed with the U.S. Securities and Exchange Commission (“SEC”), the combined proxy statement and prospectus as well as other documents about the Fund will be available free of charge on the SEC website, www.sec.gov. Copies of the combined proxy statement and prospectus will also be mailed to each Fund shareholder of record as of the record date.
The Fund also announced today that it has entered into a standstill agreement with Saba Capital Management, L.P. (together with certain of its affiliates, “Saba”) pursuant to which the Board agreed to use reasonable efforts to cause shareholders of the Fund to approve the reorganization and Saba agreed to irrevocably withdraw the notice of its intent to nominate persons for election at the Meeting and vote in favor of the reorganization and the election of directors. The Fund has been advised that Saba will file a copy of the agreement with the SEC as an exhibit to its Schedule 13D.
About the Fund
The New America High Income Fund, Inc. is a diversified, closed-end management investment company with a leveraged capital structure. The Fund’s investment adviser is T. Rowe Price Associates, Inc. (“T. Rowe Price”). As of June 30, 2024, T. Rowe Price and its affiliates managed approximately
This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at www.newamerica-hyb.com.
Statements in this press release that are not historical facts may be forward-looking statements, as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that may be beyond the Fund’s control and could cause actual results to differ materially from those set forth in the forward-looking statements.
Contact:
Ellen E. Terry, President
Telephone: 617-263-6400
www.newamerica-hyb.com
FAQ
What is the proposed reorganization for The New America High Income Fund (HYB)?
When will shareholders vote on the HYB fund reorganization?
What agreement has HYB made with Saba Capital Management?
When will HYB shareholders receive information about the proposed reorganization?
