Wells Fargo Multi-Sector Income Fund Announces Final Results of Tender Offer
May 12 2017 - 8:00AM
Business Wire
The Wells Fargo Multi-Sector Income Fund (NYSE MKT:ERC), a
diversified, closed-end management investment company organized as
a Delaware statutory trust (the fund), announced today the final
results of its tender offer for up to 15% (or 6,165,826) of its
outstanding common shares of beneficial interest, par value $0.01
per share. The offer expired at 5 p.m. Eastern Time on Thursday,
May 11, 2017.
Based on a count by Computershare Trust Company, N.A., the
depositary for the tender offer, 18,987,662 common shares, or
approximately 46.1925% of the fund’s common shares outstanding,
were tendered. The fund has accepted 6,165,826 shares for cash
payment at a price equal to 98% of the fund’s net asset value (NAV)
per share effective as of the close of the regular trading session
of the NYSE on May 12, 2017, the pricing date stated in the offer
to purchase. Because the total number of shares tendered exceeded
the number of shares offered to purchase, all tendered shares are
subject to proration in accordance with the terms of the offer to
purchase. Following the purchase of the tendered shares, the fund
will have approximately 34,939,684 common shares outstanding.
Additional information
The fund is a closed-end income fund. The fund’s investment
objective is to seek a high level of current income consistent with
limiting its overall exposure to domestic interest-rate risk.
The fund is leveraged through a revolving credit facility and
also may incur leverage by issuing preferred shares in the future.
The use of leverage results in certain risks, including, among
others, the likelihood of greater volatility of the NAV and the
market value of common shares. Foreign investments are especially
volatile and can rise or fall dramatically due to differences in
the political and economic conditions of the host country. These
risks are generally intensified in emerging markets. Derivatives
involve additional risks, including interest-rate risk, credit
risk, the risk of improper valuation, and the risk of
noncorrelation to the relevant instruments that they are designed
to hedge or closely track. Bond values fluctuate in response to the
financial condition of individual issuers, general market and
economic conditions, and changes in interest rates. Changes in
market conditions and government policies may lead to periods of
heightened volatility in the bond market and reduced liquidity for
certain bonds held by the fund. In general, when interest rates
rise, bond values fall and investors may lose principal value.
Interest-rate changes and their impact on the fund and its share
price can be sudden and unpredictable. High-yield securities have a
greater risk of default and tend to be more volatile than
higher-rated debt securities. This fund is exposed to mortgage- and
asset-backed securities risk. This closed-end fund is no longer
available as an initial public offering and is only offered through
broker/dealers on the secondary market.
Unlike an open-end mutual fund, a closed-end fund offers a fixed
number of shares for sale. After the initial public offering,
shares are bought and sold through broker/dealers in the secondary
marketplace, and the market price of the shares is determined by
supply and demand, not by NAV, and is often lower than the NAV. A
closed-end fund is not required to buy its shares back from
investors upon request.
For more information on Wells Fargo’s closed-end funds, please
visit our website.
Wells Fargo Asset Management (WFAM) is a trade name used by the
asset management businesses of Wells Fargo & Company. Wells
Fargo Funds Management, LLC, a wholly owned subsidiary of Wells
Fargo & Company, provides investment advisory and
administrative services for Wells Fargo Funds. Other affiliates of
Wells Fargo & Company provide subadvisory and other services
for the funds. This material is being prepared by Wells Fargo
Funds Distributor, LLC, Member FINRA, an affiliate of Wells
Fargo & Company. Neither Wells Fargo Funds Management nor Wells
Fargo Funds Distributor has fund customer account/assets, and
neither provides investment advice/recommendations or acts as an
investment advice fiduciary to any investor.
Some of the information contained herein may include
forward-looking statements about the expected investment activities
of the fund. These statements provide no assurance as to the fund’s
actual investment activities or results. The reader must make
his/her own assessment of the information contained herein and
consider such other factors as he/she may deem relevant to his/her
individual circumstances.
303507 05-17
NOT FDIC INSURED • NO BANK GUARANTEE • MAY
LOSE VALUE
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170512005090/en/
Wells Fargo & CompanyShareholder inquiries,
1-800-730-6001Financial advisor inquiries, 1-888-877-9275orMedia
contact:John Roehm, 415-222-5338john.o.roehm@wellsfargo.com
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Wells Fargo (NYSE:WFC)
Historical Stock Chart
From Sep 2023 to Sep 2024