Pacholder High Yield Fund, Inc. Announces Intent to Launch Cash Tender Offer to Purchase up to 100% of its Auction Rate Cumul...
February 12 2016 - 4:53PM
Business Wire
Pacholder High Yield Fund, Inc. (NYSE MKT: PHF) (the “Fund”)
announced today that its Board of Directors has authorized a cash
tender offer to purchase up to 100% of its outstanding shares of
the Auction Rate Cumulative Preferred Stock, Series W (the
“Preferred Shares”) from holders of the Preferred Shares (the
“Preferred Shareholders”) at a price equal to 95.5% of the
liquidation preference of $25,000 per share (or $23,875 per share),
plus any unpaid accrued dividends. The Fund intends to finance the
tender offer using borrowings under a credit facility that the Fund
expects to enter into in the near term, subject to completion of
the negotiation of a definitive agreement (the “Credit Facility”).
Among other conditions, the tender offer is subject to the Fund’s
entry into the Credit Facility and the availability of sufficient
funds thereunder to finance the purchase of the Preferred Shares in
the tender offer (the “Financing Condition”).
Further Information Regarding the Proposed Tender
Offer
In addition to the Financing Condition, the tender offer is
conditioned upon at least 80% of the outstanding Preferred Shares
being validly tendered and not withdrawn (the “Minimum Condition”).
Two substantial Preferred Shareholders, RiverNorth Capital
Management, LLC and its affiliates and Morgan Stanley & Co.
LLC, have provided commitments to the Fund that they will
participate in the tender offer. These commitments, if honored,
will satisfy the Minimum Condition. In connection with these
commitments, the Fund has agreed to commence the tender offer no
later than March 11, 2016, and the tender offer will remain open
for at least twenty business days following the date of the
commencement of the offer. All tendering instructions and a
complete explanation of the tender offer’s terms and conditions
will be described in the Offer to Purchase, the related Letter of
Transmittal, and other materials relating to the tender offer that
will be distributed to the Preferred Shareholders upon commencement
of the tender offer.
While the Fund’s Board of Directors has authorized the Fund to
commence the tender offer, neither the Fund, nor the Board of
Directors, nor J.P. Morgan Investment Management Inc., the
investment advisor of the Fund, has made any recommendation to any
Preferred Shareholder whether to tender or refrain from tendering
any Preferred Shares. The Preferred Shareholders are urged to
consult their own investment and tax advisors and make their own
decisions whether to tender any Preferred Shares and, if so, how
many Preferred Shares to tender.
Important Information
The anticipated tender offer described in this press release
has not yet commenced. The discussion of the tender offer contained
in this press release is for informational purposes only and is not
an offer to purchase, nor the solicitation of an offer to sell, any
of the Fund’s Preferred Shares. While the Fund intends to commence
the tender offer within a reasonable time following the date of
this press release and complete the tender offer, there can be no
assurances that the Fund will commence or complete the tender offer
on the terms described in this press release, or at all. If the
Fund commences the tender offer, the offer to purchase and
solicitation of the Preferred Shares will be made only pursuant to
an Offer to Purchase, the related Letter of Transmittal, and other
related materials, as they may be amended or supplemented. Such
documents will be distributed to the Preferred Shareholders upon
commencement of the tender offer. Preferred Shareholders should
read those materials carefully when they become available before
making any decisions with respect to the tender offer because they
will contain important information. The Fund will also file a
Tender Offer Statement on Schedule TO (the “Tender Offer
Statement”) with the Securities and Exchange Commission (the
“SEC”). The Tender Offer Statement, the Offer to Purchase, the
related Letter of Transmittal, and other related materials, as well
as any amendments or supplements, will be available to the
Preferred Shareholders for no charge on the SEC's website
(www.sec.gov). The Preferred Shareholders may also obtain a copy of
these documents, as well as any other documents that the Fund has
filed with the SEC, without charge, by contacting the Fund or
through its website at www.pacholder.com.
Forward-Looking Statements
This news release includes forward-looking statements. All
statements, other than statements of historical facts, included in
this news release that address activities, events, or developments
that the Fund expects, believes, or anticipates will or may occur
in the future are forward-looking statements. Terminology such as
“will,” “may,” “should,” “expect,” “anticipate,” “plan,” “project,”
“intend,” “estimate,” “believe,” “target,” “continue,” “potential,”
the negative of such terms, or other comparable terminology often
identify forward-looking statements. Except as required by law, the
Fund undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances
occurring after this news release. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this news release. All forward-looking
statements are qualified in their entirety by these cautionary
statements. These forward-looking statements involve risks and
uncertainties, many of which are beyond the control of the Fund,
which may cause the Fund’s actual results to differ materially from
those implied or expressed by the forward-looking statements.
About Pacholder High Yield Fund, Inc.
Pacholder High Yield Fund, Inc. is a closed-end management
investment company with a leveraged capital structure. The Fund's
investment objective is to provide a high level of total return
through current income and capital appreciation by investing
primarily in "high yield, high risk" fixed income securities of
domestic companies. The Fund’s investment advisor is J.P. Morgan
Investment Management Inc., an investment management firm
registered with the SEC under the Investment Advisers Act of
1940.
The information presented here is not intended as a
solicitation. New investors cannot purchase common shares directly
from the Fund. Shares are listed on the New York Stock Exchange
MKT, and interested investors should contact their financial
advisor or broker-dealer for more information.
The Fund was organized as a corporation under the laws of
Maryland on August 17, 1988 and has registered with the SEC under
the Investment Company Act of 1940, as amended. The Fund's
principal office is located at 270 Park Avenue, New York, New York
10017. For more information visit us at www.pacholder.com, or call
1-877-217-9502.
The Fund's investment adviser is J.P. Morgan Investment
Management Inc., an investment management firm registered with the
SEC under the Investment Advisers Act of 1940.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160212005869/en/
Pacholder High Yield Fund, Inc.1-877-217-9502
Pacholder HI Yld (AMEX:PHF)
Historical Stock Chart
From May 2024 to Jun 2024
Pacholder HI Yld (AMEX:PHF)
Historical Stock Chart
From Jun 2023 to Jun 2024