Eagle Growth and Income Opportunities Fund Announces Plans to Liquidate
May 27 2020 - 3:00PM
Eagle Growth and Income Opportunities Fund (the "Fund")
(
NYSE: EGIF) today announced that it intends to
dissolve, liquidate and distribute its net assets to shareholders.
In August 2019, the Fund's Board of Trustees
(the "Board") appointed First Eagle Alternative Credit, LLC (then
THL Credit Advisors LLC) ("FEAC") as the Fund's interim investment
adviser and approved a new interim sub-advisory agreement between
FEAC and Eagle Asset Management, Inc. ("EAM"), which has served as
the Fund's sub-adviser since the Fund's initial public offering in
June 2015. The Fund's shareholders were asked to vote on proposals
to approve non-interim arrangements with FEAC and EAM.
Additionally, shareholders were asked to vote on the change in the
Fund's termination date from May 14, 2027 to May 14, 2024. Although
the substantial majority of the Fund's shareholders who voted their
shares in connection with these proposals voted in favor of each of
these proposals, the Fund was unable to obtain the statutory quorum
required to approve any of the proposals. Accordingly, the Fund's
term was not reduced and FEAC and EAM have continued to serve the
Fund on an interim basis without any compensation or expense
reimbursement while the Board considered various alternatives for
the Fund, including merging it into another investment company and
liquidation. After significant consideration, it was determined
that a merger is not feasible and that liquidation is in the best
interests of the Fund and its shareholders.
As approved by the Board, effective immediately,
the Fund has entered dissolution and will begin the orderly
liquidation of its assets and pay or make reasonable provision to
pay all of its claims and obligations, including potential claims
and obligations. During this period, the Fund will cease to pursue
its investment objective and policies. The Board also has approved
the termination of the Fund's credit facility and the Fund is no
longer utilizing any leverage.
The Fund anticipates that, in order to make
reasonable provision for certain potential claims and obligations,
a substantial portion of the proceeds from liquidation will not be
able to be immediately distributed to shareholders. It is therefore
anticipated that the Fund's liquidating distributions will be
comprised of a cash liquidation distribution plus a 1:1 per share
interest in a liquidating trust established to hold the Fund's
remaining assets and liabilities, including potential contingent
liabilities. The liquidating distributions together will represent
substantially all of the Fund's net assets at the time of
liquidation. The Fund will announce additional details concerning
the Fund's liquidation, including material terms of the liquidating
trust as well as the amount of the Fund's net assets that will be
held back and transferred to the liquidating trust, once those
details have been finalized by the Fund's Board. Shareholders will
not have the right to sell, transfer, or otherwise dispose of or in
any way encumber the interests they receive in the liquidating
trust, except by operation of law or death of the shareholder, or
as required by law or order of a court of competent jurisdiction.
The interests in the liquidating trust will not be offered to the
public and will not be traded.
The Fund will announce the effective date for
determining the shareholders of the Fund entitled to receive
liquidating distributions and the date on which the Fund will be
suspended from trading on the New York Stock Exchange once those
details have been finalized by the Fund's Board.
Shareholders may recognize gain or loss for U.S.
tax purposes as a result of the liquidation. Gain or loss will
generally be measured as the difference between the sum of the cash
liquidation distribution and fair value of the equity interest in
the liquidating trust received, and the shareholder's tax basis in
the shares of the Fund. The Fund does not provide tax advice and
investors should consult their individual tax adviser regarding the
tax treatment applicable to a liquidating distribution and any
other payments received in connection with the liquidation.
About Eagle Growth and Income
Opportunities Fund
The Fund is a diversified, closed-end management
investment company that is advised by FEAC and sub-advised by EAM.
The Fund's investment objective is to provide total return through
a combination of current income and capital appreciation. There can
be no assurance that the Fund will achieve its investment
objective.
About First Eagle Alternative Credit,
LLC
First Eagle Alternative Credit is an alternative
credit investment manager for both direct lending and broadly
syndicated investments through public and private vehicles,
collateralized loan obligations, separately managed accounts and
co-mingled funds. First Eagle Alternative Credit maintains a
variety of advisory and sub-advisory relationships across its
investment platforms. First Eagle Alternative Credit is a wholly
owned subsidiary of First Eagle Investment Management, LLC.
About Eagle Asset Management,
Inc.
Founded in 1984, Eagle provides an array of
fundamental equity and fixed income strategies designed to meet
long-term goals of institutional and wealth clients. Eagle's
multiple independent investment teams overseeing separately managed
accounts and funds have the autonomy to pursue investment decisions
guided by their unique philosophies and strategies.
Forward-Looking Statements
Statements included herein may constitute
"forward-looking statements", which relate to future events or our
future performance or financial condition. These statements are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our filings with the Securities and Exchange Commission. The
Fund undertakes no duty to update any forward-looking statements
made herein.
Contact the Fund at 1.833.845.7513 or
visit the Fund's website at http://feacegif.com for additional
information.
Contact
Andrew ParkFirst Eagle Alternative Credit,
LLC212.829.3126
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