Invesco Senior Income Trust Announces Private Placement of Two Series of Variable Rate Demand Mode Preferred Shares
Invesco Senior Income Trust (NYSE: VVR) has completed a private placement of Variable Rate Demand Mode Preferred Shares (VRDMs) with qualified institutional buyers. The fund issued two series: $50 million each in Series A and Series B VRDMs, totaling $100 million. The proceeds were used to redeem outstanding Variable Rate Demand Preferred Shares Series W-7. Both new series have a term redemption date of November 1, 2034, with weekly dividend rates set by the fund's remarketing agent. The VRDMs include a liquidity feature and are senior to common shares but junior to fund borrowings.
Invesco Senior Income Trust (NYSE: VVR) ha completato un collocamento privato di Azioni Preferenziali a Tasso Variabile (VRDM) con acquirenti istituzionali qualificati. Il fondo ha emesso due serie: 50 milioni di dollari ciascuna nelle serie A e B di VRDM, per un totale di 100 milioni di dollari. I proventi sono stati utilizzati per riscattare le Azioni Preferenziali a Tasso Variabile di Serie W-7 ancora in circolazione. Entrambe le nuove serie hanno una data di rimborso fissata per il 1° novembre 2034, con tassi di dividendo settimanali stabiliti dall'agente di rimarketing del fondo. Le VRDM includono una caratteristica di liquidità e sono privilegiate rispetto alle azioni ordinarie ma subordinate ai prestiti del fondo.
Invesco Senior Income Trust (NYSE: VVR) ha completado una colocación privada de Acciones Preferentes de Demanda a Tasa Variable (VRDM) con compradores institucionales calificados. El fondo emitió dos series: 50 millones de dólares cada una en las Series A y B de VRDM, sumando un total de 100 millones de dólares. Los ingresos se utilizaron para canjear las Acciones Preferentes de Demanda a Tasa Variable de la Serie W-7. Ambas nuevas series tienen una fecha de redención el 1 de noviembre de 2034, con tasas de dividendo semanales fijadas por el agente de remarketing del fondo. Las VRDM incluyen una característica de liquidez y tienen prioridad sobre las acciones comunes, pero son subordinadas a los préstamos del fondo.
인베스코 시니어 인컴 트러스트(NYSE: VVR)는 자격을 갖춘 기관 투자자들과 함께 가변금리 수요형 우선주(VRDM)의 사모 배치를 완료했습니다. 이 펀드는 각각 5천만 달러인 A 시리즈와 B 시리즈 VRDM 두 가지를 발행하여 총 1억 달러에 달합니다. 수익금은 기존의 가변금리 수요형 우선주 W-7 시리즈를 상환하는 데 사용되었습니다. 두 신규 시리즈 모두 2034년 11월 1일로 설정된 만기 상환일을 가지며, 펀드의 리마케팅 에이전트가 주간 배당률을 설정합니다. VRDM에는 유동성 기능이 포함되어 있으며, 보통주보다 우선하지만 펀드 대출에는 후순위입니다.
Invesco Senior Income Trust (NYSE: VVR) a complété un placement privé d'Actions Préférentielles à Taux Variable (VRDM) auprès d'acheteurs institutionnels qualifiés. Le fonds a émis deux séries : 50 millions de dollars chacune dans les séries A et B des VRDM, pour un total de 100 millions de dollars. Les fonds recueillis ont été utilisés pour racheter les Actions Préférentielles à Taux Variable de la Série W-7 en circulation. Les deux nouvelles séries ont une date de remboursement fixée au 1er novembre 2034, avec des taux de dividende hebdomadaires déterminés par l'agent de remarketing du fonds. Les VRDM comprennent une fonctionnalité de liquidité et sont prioritaires par rapport aux actions ordinaires, mais subordonnées aux emprunts du fonds.
Invesco Senior Income Trust (NYSE: VVR) hat eine Privatplatzierung von Vorzugsaktien mit variablem Zinssatz (VRDM) bei qualifizierten institutionellen Käufern abgeschlossen. Der Fonds hat zwei Serien ausgegeben: jeweils 50 Millionen Dollar in Serie A und Serie B VRDM, insgesamt 100 Millionen Dollar. Die Erlöse wurden verwendet, um die bestehenden Vorzugsaktien mit variablem Zinssatz der Serie W-7 einzulösen. Beide neuen Serien haben ein Rückzahlungsdatum am 1. November 2034, wobei die wöchentlichen Dividendenraten von dem Remarketing-Agenten des Fonds festgelegt werden. Die VRDMs enthalten ein Liquiditätsmerkmal und haben Vorrang vor den Stammaktien, sind jedoch nachrangig gegenüber den Fondsdarlehen.
- Successfully secured $100 million in new financing through VRDM issuance
- New VRDMs include liquidity feature providing additional security for holders
- Mandatory redemption requirement by November 1, 2034 creates future financial obligation
- Weekly dividend rates subject to maximum rate increases during unsuccessful remarketing periods
Insights
This private placement represents a significant refinancing of
The transaction's structure, maintaining seniority over common shares while remaining junior to borrowings, preserves the Fund's existing capital hierarchy. This refinancing helps VVR optimize its leverage costs and extend its debt maturity profile, though the ultimate impact on the Fund's returns will depend on the spread between borrowing costs and investment yields in its senior loan portfolio.
The Series A and Series B VRDMs have a term redemption date of November 1, 2034, upon which the VRDMs are subject to mandatory redemption by the Fund. Dividends on the Series A and Series B VRDMs are set weekly at a rate established by the Fund's remarketing agent, subject to a maximum rate that will increase over time in the event of an extended period of unsuccessful remarketing. Each Series of VRDMs includes a liquidity feature provided by a liquidity provider that allows a holder of the VRDMs to have its shares purchased by the liquidity provider in the event that a sell order by the holder has not been matched with a purchase order and successfully settled in a remarketing.
The Series A and Series B VRDMs are preferred shares of the Fund and are senior, with priority in all respects, to the Fund's common shares in liquidation and as to the payment of dividends; the VRDMs of each Series rank junior to borrowings of the Fund and on parity with each other.
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This communication does not constitute an offer for sale of any securities. No VRDMs have been registered under the Securities Act or any state securities laws. Unless so registered, no VRDMs may be offered or sold in
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed
Invesco Distributors, Inc. is the
Note: There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to net asset value. Regular brokerage commissions apply.
NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY A BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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FAQ
How much did Invesco Senior Income Trust (VVR) raise in its VRDM private placement?
When is the term redemption date for VVR's new Series A and B VRDMs?
What did Invesco Senior Income Trust (VVR) do with the VRDM proceeds?
