ATLANTA,
Dec. 9, 2016 /PRNewswire/ --
Invesco, Ltd. (NYSE: IVZ), today announced it has
successfully completed the initial public offering of the Invesco
High Income 2023 Target Term Fund (NYSE: IHIT). The new closed-end
fund raised $216 million (or
21,600,000 common shares at a price of $10.00 per share) in its common share offering,
excluding any exercise of the underwriters' option to purchase
additional common shares. If the underwriters exercise that option
in full, the fund will have raised approximately $248 million before paying the sales load and
offering costs.
The Invesco High Income 2023 Target Term Fund's investment
objectives are to seek to provide a high level of current income
and to return $9.835 per share to
holders of common shares on or about Dec. 1,
2023. The fund seeks to achieve its investment objectives by
primarily investing in securities collateralized by loans secured
by real properties. The fund began trading on the New York Stock
Exchange (NYSE) on November 28, 2016,
under the symbol IHIT.
Invesco Advisers, the fund's investment adviser is responsible
for the fund's overall investment strategy and its implementation,
including the use of leverage. The lead managers of the
underwriting syndicate were Morgan Stanley & Co. LLC, Merrill
Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo
Securities, LLC.
About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management
firm, dedicated to helping investors worldwide achieve their
financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our clients
around the world. Operating in more than 20 countries, the firm is
listed on the New York Stock Exchange under the symbol IVZ.
Additional information is available at www.invesco.com.
Invesco Distributors, Inc. is the U.S. distributor for Invesco
Ltd.'s retail mutual funds, exchange-traded funds and institutional
money market funds and the subdistributor for its STIC Global
Funds. Invesco Advisers, Inc. is an investment adviser; it provides
investment advisory services to individual and institutional
clients and does not sell securities. Each entity is a wholly
owned, indirect subsidiary of Invesco Ltd.
Note: There is no assurance that a closed-end fund
will achieve its investment objective. Shares are bought on the
secondary market and may trade at a discount or premium to NAV.
Regular brokerage commissions apply.
Important Risk Information
Fund characteristics are
subject to change daily. Provided for informational purposes only
and should not be deemed as a recommendation to buy or sell the
securities.
This data is provided for informational purposes only and is not
intended for trading or selling purposes. Closed end funds, unlike
open end funds, are not continuously offered. There is a one-time
public offering and once issued, shares of closed end funds are
sold in the open market.
There is no assurance that a closed end fund will achieve its
investment objective. Like any stock, a closed end fund's share
price will fluctuate with market conditions and other factors. At
the time of sale, your shares may have a market price that is above
or below net asset value, and may be worth more or less than your
original investment. Accordingly, it is possible to lose money
investing in the fund.
As the fund approaches its Termination Date, the fund may earn
interest income at a more modest rate. As a result, the fund's
distributions during the wind-up period of approximately three to
six months preceding the Termination Date may consist, in whole or
in part, of a return of capital.
Commercial mortgage-backed securities (CMBS) differ from
conventional debt securities because principal is paid back over
the life of the security rather than at maturity. CMBS are subject
to prepayment or call risk, which is the risk that a borrower's
payments may be received earlier than expected due to changes in
prepayment rates on underlying loans. An unexpectedly high rate of
defaults on the mortgages held by a mortgage pool will adversely
affect the value of CMBS and will result in losses to the fund.
The fund's anticipated use of leverage by issuing Preferred
Shares and other senior debt securities creates special risks for
common shareholders, including potential interest rate risks and
the likelihood of greater volatility of NAV and market price of,
and distributions on, the Common Shares.
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SOURCE Invesco Ltd.