PHILADELPHIA, May 10, 2021 /PRNewswire/ -- The Board of
Trustees (the "Board") of Aberdeen Income Credit Strategies Fund
(NYSE: ACP) (the "Fund"), a closed-end fund, has
approved the terms of the issuance of transferable rights
("Rights") to the holders of the Fund's common shares (the "Common
Shareholders") of beneficial interest ("Common Shares") as of the
record date, entitling the holders of those Rights to subscribe for
Common Shares (the "Offer"). The Board, based on the
recommendations and presentations of Aberdeen Asset Managers
Limited, the Fund's investment adviser (the "Adviser"), and others,
has determined that it is in the best interests of the Fund and the
Common Shareholders to conduct the Offer and seek to increase the
assets of the Fund available for investment. The Offer
seeks to provide an opportunity to existing Common Shareholders to
purchase Common Shares at a discount to market price (subject to a
sales load).
![Aberdeen Asset Management Inc. At Aberdeen, asset management is our business. We only manage assets for clients, allowing us to focus solely on their needs and deliver independent, objective investment advice. We know global markets from the local level upwards, drawing on more than 1,900 staff, across 32 offices in 23 countries. Investment teams are based in the markets or regions where they invest, delivering local perspective in a global investment environment. (PRNewsFoto/Aberdeen Asset Management Inc.) Aberdeen Asset Management Inc. At Aberdeen, asset management is our business. We only manage assets for clients, allowing us to focus solely on their needs and deliver independent, objective investment advice. We know global markets from the local level upwards, drawing on more than 1,900 staff, across 32 offices in 23 countries. Investment teams are based in the markets or regions where they invest, delivering local perspective in a global investment environment. (PRNewsFoto/Aberdeen Asset Management Inc.)](https://mma.prnewswire.com/media/50305/aberdeen_asset_management_inc__logo.jpg)
The Fund will distribute to Common Shareholders of record as of
the record date ("Record Date Shareholders"), which is currently
anticipated to be May 20, 2021 (the
"Record Date"), one right ("Right") for each Common Share held on
the Record Date. Record Date Shareholders will be entitled to
purchase one new Common Share for every three Rights held (1 for
3); however, any Common Shareholder who owns fewer than three
Common Shares as of the Record Date will be entitled to subscribe
for one Common Share. Fractional Common Shares will not be
issued.
The proposed subscription period is currently anticipated to
commence on the Record Date and expire on June 16, 2021, unless extended by the Fund (the
"Expiration Date"). The Rights are transferable and are expected to
be admitted for trading on the New York Stock Exchange (the "NYSE")
under the symbol "ACP RT" during the course of the Offer. Rights
may be exercised at any time during the subscription period.
The subscription price per Common Share (the "Subscription
Price") will be determined on the Expiration Date, and will be
based upon a formula equal to 92.5% of the average of the last
reported sales price of a Common Share of the Fund on the NYSE on
the Expiration Date and each of the four (4) immediately preceding
trading days (the "Formula Price"). If, however, the Formula Price
is less than 87% of the Fund's net asset value per Common Share at
the close of trading on the NYSE on the Expiration Date, the
Subscription Price will be 87% of the Fund's net asset value per
Common Share at the close of trading on the NYSE on that day. The
estimated Subscription Price has not yet been determined by the
Fund.
Record Date Shareholders who exercise all of their primary
subscription Rights will be eligible for an over-subscription
privilege entitling Record Date Shareholders to subscribe, subject
to certain limitations and allotment, for any additional Common
Shares not purchased pursuant to the primary subscription.
The Fund also announced today that it will pay a
distribution of US $0.10 per share on
May 27, 2021 to all shareholders of
record as of May 21, 2021
(ex-dividend date May 20, 2021).
Please note that this monthly distribution will not be payable with
respect to the shares that will be issued pursuant to the rights
offering.
The Fund also expects to declare a regular monthly distribution
to Common Shareholders payable on or about June 30, 2021 with a record date on or about
June 4, 2021, which will also not be
payable with respect to Common Shares that are issued pursuant to
the Offer after such record date.
The Offer will be made pursuant to the Fund's currently
effective shelf registration statement on file with the Securities
and Exchange Commission ("SEC") and only by means of a prospectus
supplement and accompanying prospectus. A final prospectus
supplement and accompanying prospectus will be filed with the SEC,
but has not been filed as of the date of this release. The Fund
expects to mail subscription certificates evidencing the Rights and
a copy of the prospectus for the Offer to Record Date Shareholders
within the United States shortly
following the Record Date. To exercise their Rights, Common
Shareholders who hold their Common Shares through a broker,
custodian or trust company, should contact such entity to forward
their instructions to either exercise or sell their Rights on their
behalf. Common Shareholders who do not hold Common Shares through a
broker, custodian or trust company, should forward their
instructions to either exercise or sell their Rights by completing
the subscription certificate and delivering it to the subscription
agent for the Offer, together with their payment, at one of the
locations indicated on the subscription certificate or in the
prospectus.
*
* *
The Fund is a diversified, closed-end management investment
company. The Fund's primary investment objective is to seek a high
level of current income with a secondary objective of capital
appreciation. Depending on current market conditions and the Fund's
outlook over time, the Fund seeks to achieve its investment
objectives by opportunistically investing primarily in loan and
debt instruments (and loan-related or debt-related instruments,
including repurchase and reverse repurchase agreements and
derivative instruments) of issuers that operate in a variety of
industries and geographic regions. The Fund invests all or a
substantial portion of its assets in below investment grade
securities which are often referred to as high yield or "junk"
securities. Shares of closed-end funds frequently trade at a
discount to net asset value. The price of the Fund's Common Shares
is determined by a number of factors, many of which are beyond the
control of the Fund.
The Fund is managed and advised by Aberdeen Asset Managers
Limited. The Fund's shares trade on the NYSE under the symbol
"ACP".
In the United States, Aberdeen
Standard Investments is the marketing name for the following
affiliated, registered investment advisers: Aberdeen Standard
Investments Inc., Aberdeen Asset Managers Ltd., Aberdeen Standard
Investments Australia Ltd., Aberdeen Standard Investments
(Asia) Ltd., Aberdeen Capital
Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC
and Aberdeen Standard Alternative Funds Limited.
Investors should consider the Fund's investment objectives,
risks, charges and expenses carefully before investing. There is no
assurance that the Fund will achieve its investment objectives. For
further information regarding the Fund's Offer, or to obtain a
prospectus supplement and accompanying prospectus, when available,
please visit the website maintained by the SEC at www.sec.gov or
contact the Fund's Information Agent:
Georgeson Inc.
1290 Avenue of the Americas, 9th Floor
New York, NY 10104
1-800-561-2871
This press release shall not constitute an offer to sell or
constitute a solicitation of an offer to buy. Investors should read
the prospectus supplement and accompanying prospectus, when
available, and consider the investment objective, risks, fees and
expenses of the Fund carefully before investing. This press release
is not an offer to sell these securities and is not soliciting
offers to buy these securities in any jurisdiction where the offer
or sale is not permitted.
If you wish to receive this information
electronically, please contact
Investor.Relations@aberdeenstandard.com
aberdeenacp.com
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SOURCE Aberdeen Income Credit Strategies Fund