Equus Total Return, Inc. Revises Its Managed Distribution Policy to Pay 10% Annually, and Declares a Quarterly Dividend of $0.15
February 19 2008 - 7:05PM
PR Newswire (US)
HOUSTON, Feb. 19 /PRNewswire-FirstCall/ -- Equus Total Return, Inc.
(NYSE:EQS) (the "Fund"), today announced a revised managed
distribution policy in which the Fund will seek to pay quarterly
dividends to shareholders at an annualized rate equal to 10% of the
Fund's market value, based on the 2007 year-end closing price of
$6.31. The Fund's Board of Directors periodically will reassess the
annualized percentage at which the Fund's quarterly distributions
will be made. The Board may change or terminate the managed
distribution policy at any time; any such change or termination may
have an adverse effect on the market price for the Fund's shares.
In accordance with the revised managed distribution policy and
federal legal requirements, the Board has approved an annual
dividend of $0.631 per share, of which $0.158 will be paid for the
first quarter of 2008. This first quarter dividend includes a
"special dividend" that the Fund is required to pay pursuant to
federal tax requirements. The dividend will be payable on March 31,
2008, to shareholders of record as of the close of business on
February 29, 2008. Shares of EQS will trade ex-dividend beginning
February 27, 2008. The dividend will be payable in shares of common
stock or in cash by specific election. Such election must be made
by shareholders no later than March 24, 2008. If no election is
made, shareholders will receive stock. The stock issued in the
dividend will be valued at the average closing market price of EQS
for the ten trading days ending March 24, 2008. Cash will be paid
in lieu of issuing any fractional shares. The Fund is managed with
a goal of generating as much of its dividends as possible from
ordinary income (net investment income and short-term capital
gains). The balance of the dividend then comes from long-term
capital gains and, if necessary, a return of capital. Kenneth I.
Denos, the Fund's CEO and President, commented, "The Fund's
dividend policy, as originally adopted in October 2006 and revised
today, is consistent with the Fund's total return objective. We
believe this new approach will continue to provide our shareholders
with a current cash feature in the form of a quarterly dividend."
Equus is a business development company that trades as a closed-end
fund on the New York Stock Exchange, under the symbol "EQS".
Additional information on Equus may be obtained from the website at
http://www.equuscap.com/. This press release may contain certain
forward-looking statements regarding future circumstances. These
forward-looking statements are based upon the Company's current
expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially
from those contemplated in such forward-looking statements
including, in particular, the risks and uncertainties described in
the Company's filings with the Securities and Exchange Commission.
Actual results, events, and performance may differ. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as to the date hereof. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by the Company or any
other person that the events or circumstances described in such
statements are material. CONTACT: Brett Chiles (713) 529-0900
DATASOURCE: Equus Total Return, Inc. CONTACT: Brett Chiles of Equus
Total Return, Inc., +1-713-529-0900 Web site:
http://www.equuscap.com/
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