ATLANTA, March 17, 2017 /PRNewswire/ -- Invesco Advisers
Inc. ("Invesco") announced today that Invesco High Income 2023
Target Term Fund (the "Fund") has entered into a commercial
mortgage backed securities ("CMBS") repurchase facility (the
"Facility"). The Fund anticipates using the Facility as a
form of leverage to seek to enhance its potential to produce a high
level of current income and to return $9.835 per share to Common Shareholders on or
about December 1, 2023 (the Fund's
termination date). The Facility will permit the Fund to
engage in reverse repurchase agreement transactions in which the
Fund will receive cash and will transfer CMBS to a bank in exchange
for a simultaneous agreement by the bank to sell the CMBS back to
the Fund at a future date, resulting in the Fund having access to
additional cash to invest while maintaining its portfolio of
investments.
The Facility will expose the Fund to interest rate risk,
including the risk associated with financing fixed rate instruments
with floating rate debt. An increase in prevailing interest
rates will result in increased costs associated with using the
Facility. Additionally, the use of leverage, such as the
Facility, creates additional risks for Common Shareholders,
including increased variability of the Fund's net asset value, net
income and distributions in relation to market changes. In
particular, leverage increases the risk of price volatility. The
Fund's use of leverage may not work as planned or achieve its
goals.
Both the anticipated amount of leverage utilized by the Fund and
the costs of leverage associated with the Facility are projected to
be lower than was expected at the Fund's launch. Invesco
believes that by entering into the Facility, Invesco will enhance
its ability to manage the Fund's portfolio in the best interests of
shareholders and to meet the Fund's investment
objectives.
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. 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.
NOT FDIC INSURED l MAY LOSE VALUE l NO BANK GUARANTEE
—Invesco—
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SOURCE Invesco Ltd.