Pacholder High Yield Fund, Inc. Enters into New $50 Million Credit Facility; Announces Satisfaction of Financing Condition in...
April 05 2016 - 4:55PM
Business Wire
Pacholder High Yield Fund, Inc. (NYSE MKT: PHF) (the “Fund”)
announced today that it has entered into a new $50 million credit
facility with Pershing LLC as lender (the “Credit Facility”). The
Credit Facility provides for borrowings in an aggregate principal
amount of up to $50,000,000 and allows the Fund to borrow, repay
and reborrow amounts thereunder from time to time, with each
borrowing terminable upon 180 days’ notice by the Fund or Pershing
LLC. In order to secure the loans available under the Credit
Facility, the Fund will pledge a portfolio of U.S. corporate
investment grade and high-yield bonds as collateral. Loans made
under the Credit Facility will accrue interest at a rate equal to
the one-month LIBOR offered rate plus 75 basis points. In addition,
the Fund will be subject to a minimum balance fee equal to the
one-month LIBOR offered rate plus 60 basis points if the amount
outstanding under the Credit Facility is less than 80% of the
maximum amount permitted to be borrowed under the Credit Facility.
The minimum balance fee will be applied to the difference between
80% of maximum amount permitted to be borrowed under the Credit
Facility and the amount borrowed.
The Credit Facility contains certain representations and
warranties, and notice requirements for the occurrence of specific
events such as the occurrence of any event of default, or pending
or threatened litigation. The Credit Facility requires compliance
with certain covenants, including certain minimum margin
requirements, retention of the Fund’s net asset value above
specified threshold levels, limitations on the incurrence of
additional liens and limitations on the ability of the Fund to
sell, lease or otherwise transfer all or any substantial part of
its assets to any other entity, with certain exceptions.
The Fund expects to use borrowings under the Credit Facility to
purchase preferred shares tendered in its previously announced
tender offer (the “Tender Offer”) for up to 100% of the outstanding
shares of the Fund’s Auction Rate Cumulative Preferred Stock,
Series W at a price equal to 95.5% of the liquidation preference of
$25,000 (or $23,875 per share), plus any unpaid accrued dividends.
Borrowings under the Credit Facility may also be used to buy, carry
or trade in securities or an investment contract security.
The Fund further announced that, as a result of its entering
into the Credit Facility, the Financing Condition (as such term is
defined in the Fund’s Offer to Purchase dated March 11, 2016 (the
“Offer to Purchase”) with respect to the Tender Offer) has been
satisfied. The Tender Offer remains subject to the other terms and
conditions described in the Offer to Purchase and the accompanying
letter of transmittal. Other than the satisfaction of the Financing
Condition, the terms and conditions of the Tender Offer remain
unchanged.
The Tender Offer commenced on Friday March 11, 2016 and is
scheduled to expire at 5:00 p.m., New York City time, on Wednesday,
April 13, 2016, unless extended or terminated earlier by the
Fund. Shareholders who wish to tender their Preferred Shares must
properly tender their Preferred Shares on or prior to the
expiration of the Tender Offer. Tendered shares may be withdrawn at
any time on or prior to the expiration of the Tender Offer.
The information agent for the Tender Offer is Georgeson, Inc.
The depositary is Computershare Trust Company, N.A. Tender
Offer documents, including the Offer to Purchase, related letter of
transmittal and related documents, have been mailed to shareholders
of record and have also been made available for distribution to
beneficial owners of the Funds Preferred Shares. Such documents can
be found on the Securities and Exchange Commission’s website at
www.sec.gov. For questions and information regarding the Tender
Offer, please call the Information Agent toll free at
(800) 457-0759.
This press release is for informational purposes only and is
not an offer to sell or purchase or the solicitation of an offer to
sell or purchase any securities discussed herein. New investors
cannot purchase shares directly from the Fund. The Tender
Offer is being made solely pursuant to the Offer to Purchase and
the related letter of transmittal, and other related materials that
the Fund has distributed to holders of the Preferred Shares and
filed with the Securities and Exchange Commission. The Tender Offer
is not being made in any jurisdiction in which the making or
acceptance thereof would not be in compliance with the securities,
“blue sky” or other laws of such jurisdiction. The Fund’s common
shares are listed on the New York Stock Exchange MKT, and
interested investors should contact their financial advisor or
broker-dealer for more information.
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 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.
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Pacholder High Yield Fund, Inc.1-877-217-9502
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