Duff & Phelps Utility and Infrastructure Fund Inc. To Redeem Floating Rate Mandatory Redeemable Preferred Shares, Series B

Rhea-AI Summary

On October 22, 2021, Duff & Phelps Utility and Infrastructure Fund (NYSE: DPG) will redeem all outstanding Floating Rate Mandatory Redeemable Preferred Shares, Series B. The redemption, funded by a $40 million loan from a commercial bank, aims to optimize leverage management. The redemption price is $25.00 per share plus any unpaid dividends. Following the redemption, the preferred shares will no longer be active, and rights associated with them will cease. The fund focuses on generating high current income through investments in utility and infrastructure sectors.

Positive

• Redemption of preferred shares indicates proactive financial management.
• Funding the redemption through a $40 million credit facility shows liquidity and financial strategy.

Negative

• None.

CHICAGO, Sept. 22, 2021 /PRNewswire/ -- Duff & Phelps Utility and Infrastructure Fund Inc. (NYSE: DPG), a closed-end fund advised by Duff & Phelps Investment Management Co., today announced that on October 22, 2021, it will redeem all of its outstanding Floating Rate Mandatory Redeemable Preferred Shares, Series B (CUSIP No. 26433C3#0).

The fund is making this redemption at this time at its voluntary option and as part of what it believes is prudent management of its use of leverage. The redemption of the Series B Preferred Shares is being funded by the borrowing of $40 million under the fund's existing credit facility with a major commercial bank.

The redemption price per share will be the liquidation preference of $25.00 plus accumulated but unpaid dividends and distributions up to, but excluding, the redemption date. Effective upon the redemption, the Series B Preferred Shares will no longer be deemed outstanding, dividends will cease to accumulate, and all the rights of the shareholders with respect to the Series B Preferred Shares will cease.

About the Fund
Duff & Phelps Utility and Infrastructure Fund Inc. is a closed-end investment management company whose investment objective is to seek total return, resulting primarily from (i) a high level of current income, with an emphasis on providing tax-advantaged dividend income and (ii) growth in current income, and secondarily from capital appreciation. The Fund seeks to achieve its objective by investing in equities of domestic and foreign companies in the infrastructure and utility industries. The fund considers the infrastructure industry to include companies that derive at least 50% of their revenue or profits from owning or operating infrastructure assets, which include toll roads, bridges, tunnels, airports, seaports, and railroads. The fund considers the utility industry to include companies that commit or derive at least 50% of their assets, gross income or profits in the electric, gas, water, telecommunications, and midstream energy sectors. For more information, please contact shareholder services by calling (866) 270-7598, by email at duff@virtus.com, or by visiting the DPG website, www.dpimc.com/dpg.

About the Investment Adviser
Duff & Phelps Investment Management Co. is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a multi-boutique asset manager. Duff & Phelps has more than 35 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure, MLPs and real estate investment trusts (REITs). For more information, visit www.dpimc.com.

Fund Risks
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the fund's investment objective and risks, please see the fund's annual report. A copy of the fund's most recent annual report may be obtained free of charge from shareholder services at (866) 270-7598, by email at duff@virtus.com, or visit the DPG website, www.dpimc.com/dpg.

Forward-Looking Information
This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about beliefs or expectations, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as "expect," "estimate," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," or similar statements or variations of such terms. Forward-looking statements are based on a series of expectations, assumptions, and projections; are not guarantees of future results or performance; and may involve risks and uncertainty. All forward-looking statements are as of the date of this release only; the fund undertakes no obligation to update or review any forward-looking statements. The fund can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/duff--phelps-utility-and-infrastructure-fund-inc-to-redeem-floating-rate-mandatory-redeemable-preferred-shares-series-b-301382885.html

SOURCE Duff & Phelps Utility and Infrastructure Fund Inc.

FAQ

When will DPG redeem its Floating Rate Mandatory Redeemable Preferred Shares?

DPG will redeem its Floating Rate Mandatory Redeemable Preferred Shares on October 22, 2021.

How is DPG funding the redemption of its preferred shares?

DPG is funding the redemption with $40 million borrowed from its credit facility.

What is the redemption price for DPG's Series B Preferred Shares?

The redemption price is $25.00 plus any accumulated but unpaid dividends.

What happens to the rights of shareholders after the redemption by DPG?

After the redemption, the Series B Preferred Shares will no longer be outstanding, and all rights associated with them will cease.

What is the investment focus of Duff & Phelps Utility and Infrastructure Fund?

The fund invests primarily in the utility and infrastructure sectors to achieve high current income and capital appreciation.