PHILADELPHIA CREAM, May 10, 2021 / PRNewswire / – The Board of Directors (the “Board”) of Aberdeen Income Credit Strategies Fund (NYSE: ACP) (the “Fund”), a closed-end fund, has approved the terms of the issuance of transferable rights (“Rights”) to holders of common shares of the Fund (the “Common Shareholders”) of beneficial interest (“ Common Shares “”) on the Record Date, allowing holders of such Rights to subscribe for Common Shares (the “Offer”). The Board, based on the recommendations and presentations of Aberdeen Asset Managers Limited, of the Advisor investment fund (the “Advisor”) and others, has determined that it is in the best interests of the Fund and the common shareholders to complete the Offer and seek to increase the assets of the Fund available for investment. The offer is intended to provide existing common shareholders with the ability to purchase common shares at a discount to the market price (subject to a subscription charge).
The Fund will distribute to common shareholders of record on the record date (the “record date shareholders”), which should currently be May 20, 2021 (the “Record Date”), one Right (“Right”) for each Common Share held on the Record Date. Reference date Shareholders will have the right to purchase one new ordinary share for three rights held (1 for 3); however, any common shareholder who owns less than three common shares on the record date will be entitled to subscribe for one common share. No fractional common shares will be issued.
The proposed subscription period is currently scheduled to begin on the date of registration and expire on June 16, 2021, unless extended by the Fund (the “Expiry Date”). The Rights are transferable and are expected to be admitted to trading on the New York Stock Exchange (the “NYSE”) under the symbol “ACP RT” during the term of the Offer. The rights can be exercised at any time during the subscription period.
The Subscription Price per Common Share (the “Subscription Price”) will be determined on the Expiry Date and will be based on a formula corresponding to 92.5% of the average of the last published selling price of a Common Share of the Funds on the NYSE on the Expiration Date and each of the four (4) trading days immediately preceding (the “Formula Price”). If, however, the price of the Formula is less than 87% of the Fund’s NAV per Common Share at the close of trading on the New York Stock Exchange on the Expiry Date, the Subscription Price will be 87% of the net asset value of the Fund per common share. at the close of trading on the NYSE that day. The estimated Subscription Price has not yet been determined by the Fund.
Shareholders on the record date who exercise all of their primary subscription rights will be eligible for an oversubscription privilege allowing shareholders on the record date to subscribe, subject to certain restrictions and allotments, for any additional common shares not purchased under the terms. of the primary subscription.
The Fund also announced today that it will pay a distribution of USD $ 0.10 per share on May 27, 2021 to all shareholders registered in the May 21, 2021 (ex-dividend date May 20, 2021). Please note that this monthly distribution will not be payable in respect of the shares to be issued under the Rights Offering.
The Fund also expects to declare a regular monthly distribution to holders of Common Shares payable on or about June 30, 2021 with a recording date on or around June 4, 2021, which will also not be payable in respect of the Common Shares issued under the Offer after such Record Date.
The offering will be made in accordance with the Fund’s current pre-registration statement filed with the Securities and Exchange Commission (“SEC”) and only by way of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus will be filed with the SEC, but have not been filed as of the date of this news release. The Fund expects to mail subscription certificates evidencing the rights and a copy of the offering prospectus to shareholders on the date of registration in the United States shortly after the date of registration. In order to exercise their rights, holders of Common Shares who hold their Common Shares through a broker, custodian or trust company should contact such entity with their instructions to exercise or to sell their rights on their behalf. Holders of Common Shares who do not hold Common Shares through a broker, custodian or trust company must provide their instructions to exercise or sell their rights by completing the certificate. subscription and delivering it to the subscription agent for the offering, together with their payment, at one of the locations indicated on the subscription certificate or in the prospectus.
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The Fund is a diversified and private management investment company. The primary investment objective of the Fund is to seek a high level of current income with a secondary objective of capital appreciation. Depending on current market conditions and the outlook for the Fund over time, the Fund seeks to achieve its investment objectives by investing opportunistically primarily in loan and debt instruments (and instruments linked to loans or debt securities, including repurchase and reverse repurchase agreements and derivatives) of issuers operating in various industries and geographic regions. The Fund invests all or a substantial portion of its assets in securities of lower investment quality, often referred to as high yield or “junk” securities. Closed-end fund stocks frequently trade for less than net asset value. The price of common shares of the Fund is determined by a number of factors, many of which are beyond the control of the Fund.
The Fund is managed and advised by Aberdeen Asset Managers Limited. The Fund’s shares trade on the NYSE under the symbol “ACP”.
In United States, Aberdeen Standard Investments is the trade name of the following affiliated and registered investment advisers: Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd., Aberdeen Standard Investments Australia Ltd., Aberdeen Standard Investments (Asia) Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Aberdeen Standard Alternative Funds Limited.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. There can be no assurance that the Fund will achieve its investment objectives. For further information regarding the Fund Offer, or to obtain a prospectus supplement and accompanying prospectus, when available, please visit the website maintained by the SEC at www.sec. gov or contact the Fund Information Agent:
1290 Avenue of the Americas, 9e Ground
New York, New York State 10104
This press release does not constitute an offer to sell or the solicitation of an offer to buy. Investors should read the Prospectus Supplement and accompanying prospectus, when available, and carefully consider the investment objective, risks, charges and expenses of the Fund before investing. This press release does not constitute an offer to sell these securities and does not solicit offers to buy such securities in any jurisdiction where the offer or sale is not permitted.
If you wish to receive this information electronically, please contact [email protected]
SOURCE Aberdeen Income Credit Strategies Fund