Equus Total Return, Inc. Announces Suspension of Distribution Policy
March 24 2009 - 5:30PM
PR Newswire (US)
HOUSTON, March 24 /PRNewswire-FirstCall/ -- Equus Total Return,
Inc. (NYSE:EQS) (the "Fund") announced today that it will suspend
its managed distribution policy (the "Policy") and payment of
quarterly distributions for an indefinite period. The suspension of
the Policy is effective immediately. As originally implemented, the
Policy provided for quarterly dividends at an annualized rate equal
to 10% of the Fund's market value per share as at the end of the
preceding calendar year. At a regular meeting held on March 19,
2009, the Fund's Board of Directors considered continuation of the
Policy and a number of alternatives and other factors before making
a determination to suspend the Policy. The Fund's chairman, Greg
Flanagan, stated, "Given the circumstances of this unprecedented
economic climate, the Board believes it is in the best interest of
our shareholders to suspend the Fund's managed distribution
policy". The Fund will pay out net investment income and/or
realized capital gains, if any, on an annual basis as required
under the Investment Company Act of 1940. However, the Fund may not
make additional distributions in 2009. The Fund's policy has stated
a goal of providing dependable, but not assured distributions with
respect to the common shares. Mr. Flanagan noted, however, that the
Policy has always been subject to the Board's discretion to
suspend, modify or terminate the Policy at any time. Mr. Flanagan
stated that "the Fund's Board of Directors will continue to monitor
the economic environment and the Fund's ability to pay dividends at
its regular quarterly meetings." Kenneth Denos, Chief Executive
Officer and President the Fund, identified a number of factors that
influenced the decision to suspend the Policy: -- The Fund is not
presently generating sustainable current income or capital gains
sufficient to pay regular dividends. Consequently, any dividends
paid during the intermediate future are likely to primarily consist
of return of capital. -- Like other closed-end funds, the Fund's
Policy has not appeared to narrow the Fund's share price discount
from the Fund's net asset value. Equus Total Return, Inc. 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 Total Return, Inc. may be obtained from Equus'
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 Fund'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 Fund'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 Fund
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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