Deutsche High Income Opportunities Fund, Inc. Announces Additional Details Regarding Its Liquidation
December 01 2017 - 5:00PM
Business Wire
Deutsche High Income Opportunities Fund, Inc. (NYSE:DHG)
(the “Fund”) announced today that its Board of Directors has
approved a Plan of Liquidation for the Fund (the “Plan”) related to
the previously approved liquidation of the Fund to occur on or
before March 30, 2018. As further described below, pursuant to the
Plan a final liquidating distribution is expected to be made on or
about March 16, 2018.
Under the terms of the Plan, the “Cessation Date” for the Fund’s
planned liquidation is expected to occur on or about March 9, 2018.
As provided in the Plan, at the close of business on the Cessation
Date, the Fund will cease to engage in any business activities,
except for the purpose of liquidating and winding up its affairs,
and the books of the Fund will be closed. Effective the business
day following the Cessation Date, the Fund’s shares will not be
transferable (except for the settlement of prior transactions), and
it is anticipated that trading in the Fund’s shares on the New York
Stock Exchange will cease. The Fund will subsequently seek to
reduce all remaining portfolio securities to cash or cash
equivalents and make a final liquidating distribution to
shareholders on or about March 16, 2018. All Fund shareholders as
of the close of business on the Cessation Date will be entitled to
receive a liquidating distribution. The Cessation Date may be
extended if necessary or appropriate in connection with the orderly
liquidation of the Fund or to protect the interests of Fund
shareholders.
Prior to the Cessation Date, the Fund intends to reduce and
eliminate its financial leverage by paying back its bank line of
credit. It is anticipated that the Fund’s de-levering will occur in
stages over time and, subject to portfolio management’s discretion,
is currently expected to be completed no later than early February.
In addition, prior to the Cessation Date and subject to portfolio
management’s discretion, the Fund intends to begin the process of
converting its portfolio securities to more liquid investments,
including cash or cash equivalents. As the Fund de-levers and
begins to transition its portfolio to more liquid investments, its
net investment income may decline, which, in turn, may reduce its
remaining regular monthly dividends. The Fund’s last anticipated
regular monthly dividend will be for the month of February. The
Fund does not expect to pay its regular March monthly dividend. Any
net investment income earned in March would consequently be
included as part of the Fund’s final liquidating distribution to
shareholders.
Important Information
Deutsche High Income Opportunities Fund, Inc. seeks high
current income with a secondary objective of total return. The Fund
pursues its investment objectives by investing primarily in
securities designed to generate income, with the potential for
capital appreciation being a secondary consideration. The
Fund may invest in a broad range of income-producing securities,
including, but not limited to, domestic and foreign debt securities
of any credit quality or maturity (including below investment grade
debt securities and debt securities of issuers located in countries
with new or emerging securities markets), convertible securities
(including convertible bonds), dividend-paying common stocks,
preferred stocks, and securities of real estate investment trusts
(“REITS”), energy trusts and other investment companies. The
Fund may invest in debt securities not paying interest currently
and securities in default. In addition, the Fund may invest
in senior bank loans, including bank loan participations and
assignments. The Fund may buy or sell protection on credit exposure
and may also purchase securities on a when-issued basis and engage
in short sales. The Fund may invest in cash or money market
instruments in the event portfolio management determines that
securities meeting the Fund’s investment objectives are not readily
available for purchase. Future earnings of the Fund cannot be
guaranteed and the Fund's dividend policy is subject to change. Any
fund that concentrates in a particular segment of the market will
generally be more volatile than a fund that invests more broadly.
Bond investments are subject to interest-rate, credit, liquidity
and market risks to varying degrees. When interest rates rise, bond
prices generally fall. Credit risk refers to the ability of an
issuer to make timely payments of principal and interest.
Investments in lower-quality (“junk bonds”) and non-rated
securities present greater risk of loss than investments in
higher-quality securities. There are special risks associated with
an investment in real estate, including REITs. These risks include
credit risk, interest rate fluctuations and the impact of varied
economic conditions. Stocks may decline in value. Investing in
foreign securities presents certain risks, such as currency
fluctuations, political and economic changes, and market risks.
Investing in derivatives entails special risks relating to
liquidity, leverage and credit that may reduce returns and/or
increase volatility. Leverage results in additional risks and can
magnify the effect of any gains or losses.
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 bought and sold in the open market
through a stock exchange. Shares of closed-end funds frequently
trade at a discount to the net asset value. The price of a fund’s
shares is determined by a number of factors, several of which are
beyond the control of the fund. Therefore, the fund cannot predict
whether its shares will trade at, below or above net asset
value.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
Certain statements contained in this release may be
forward-looking in nature. These include all statements relating to
plans, expectations, and other statements that are not historical
facts and typically use words like “expect,” “anticipate,”
“believe,” “intend,” and similar expressions. Such statements
represent management’s current beliefs, based upon information
available at the time the statements are made, with regard to the
matters addressed. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed in, or implied by, such statements.
Management does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. The following
factors, among others, could cause actual results to differ
materially from forward-looking statements: (i) the effects of
adverse changes in market and economic conditions; (ii) legal and
regulatory developments; and (iii) other additional risks and
uncertainties.
Nothing contained herein is fiduciary or impartial investment
advice that is individualized or directed to any plan, plan
participant, or IRA owner regarding the advisability of any
investment transaction, including any IRA distribution or
rollover.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO
BANK GUARANTEENOT A DEPOSIT • NOT INSURED BY ANY FEDERAL
GOVERNMENT AGENCY
Deutsche AM Distributors, Inc.222 South Riverside
PlazaChicago, IL 60606-5808www.deutschefunds.comTel (800)
621-1148Copyright © 2017 Deutsche Bank AG. All Rights Reserved
Deutsche Asset Management represents the asset management
activities conducted by Deutsche Bank AG or any of its
subsidiaries. Investment products offered through Deutsche AM
Distributors, Inc. Advisory services offered through Deutsche
Investment Management Americas Inc. (R-053514-1)
(12/17)
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For additional
information:Deutsche Bank Press Office (212)
250-7171Shareholder Account Information (800)
294-4366Deutsche Closed-End Funds (800) 349-4281or
00-800-2287-2750 from outside the US
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