First Trust High Yield
Opportunities 2027 Term Fund (the “Fund”) (NYSE: FTHY) has
declared the Fund’s initial regularly scheduled monthly common
share distributions for September, October and November of $0.1194
per share for each month.
The payable, record and expected ex-dividend dates for these
distributions are as follows:
September
October
November
Payable Date:
09/25/20
10/26/20
11/25/20
Record Date:
09/02/20
10/02/20
11/03/20
Expected Ex-Dividend Date:
09/01/20
10/01/20
11/02/20
Distribution Per Share:
$0.1194
$0.1194
$0.1194
It is anticipated that the monthly distribution for December
will be declared on its regular schedule on or around November 19,
2020.
The monthly distribution information for the Fund appears
below.
First Trust High Yield Opportunities 2027
Term Fund (FTHY):
Distribution per share:
$0.1194
Distribution Rate based on the July 29,
2020 NAV of $20.47:
7.00%
Distribution Rate based on the July 29,
2020 closing market price of $20.07:
7.14%
Distribution Rate based on the initial
offer price of $20.00:
7.16%
We anticipate these distributions will be paid out of net
investment income earned by the Fund. The final determination of
the source and tax status of all distributions paid in 2020 will be
made after the end of 2020 and will be provided on Form
1099-DIV.
The Fund is a diversified, closed-end management investment
company. The Fund’s investment objective is to provide current
income. Under normal market conditions, the Fund will seek to
achieve its investment objective by investing at least 80% of its
managed assets in high yield debt securities of any maturity that
are rated below investment grade at the time of purchase or unrated
securities determined by First Trust Advisors L.P. (“FTA”) to be of
comparable quality. High yield debt securities include U.S. and
non-U.S. corporate debt obligations and senior, secured floating
rate loans (“Senior Loans”). Securities rated below investment
grade are commonly referred to as “junk” or “high yield” securities
and are considered speculative with respect to the issuer’s
capacity to pay interest and repay principal. There can be no
assurance that the Fund will achieve its investment objective or
that the Fund’s investment strategies will be successful.
The Fund’s portfolio holdings can be found at
www.ftportfolios.com and are anticipated to be available on August
3rd with data as of July 31st and are anticipated to be available
daily thereafter.
FTA is a federally registered investment advisor and serves as
the Fund’s investment advisor. FTA and its affiliate First Trust
Portfolios L.P. (“FTP”), a FINRA registered broker-dealer, are
privately-held companies that provide a variety of investment
services. FTA has collective assets under management or supervision
of approximately $139 billion as of June 30, 2020 through unit
investment trusts, exchange-traded Funds, closed-end Funds, mutual
Funds and separate managed accounts. FTA is the supervisor of the
First Trust unit investment trusts, while FTP is the sponsor. FTP
is also a distributor of mutual Fund shares and exchange-traded
Fund creation units. FTA and FTP are based in Wheaton,
Illinois.
Past performance is no assurance of future results. Investment
return and market value of an investment in the Fund will
fluctuate. Shares, when sold, may be worth more or less than their
original cost. There can be no assurance that the Fund’s investment
objective will be achieved. The Fund may not be appropriate for all
investors.
Principal Risk Factors: Securities held by the Fund, as well as
shares of the Fund itself, are subject to market fluctuations
caused by factors such as general economic conditions, political
events, regulatory or market developments, changes in interest
rates and perceived trends in securities prices. Shares of the Fund
could decline in value or underperform other investments as a
result of the risk of loss associated with these market
fluctuations. In addition, local, regional or global events such as
war, acts of terrorism, spread of infectious diseases or other
public health issues, recessions, or other events could have a
significant negative impact on the Fund and its investments. Such
events may affect certain geographic regions, countries, sectors
and industries more significantly than others. The outbreak of the
respiratory disease designated as COVID-19 in December 2019 has
caused significant volatility and declines in global financial
markets, which have caused losses for investors. The impact of this
COVID-19 pandemic may last for an extended period of time and will
continue to impact the economy for the foreseeable future.
The Fund will typically invest in securities rated below
investment grade, which are commonly referred to as “junk” or “high
yield” securities and considered speculative because of the credit
risk of their issuers. Such issuers are more likely than investment
grade issuers to default on their payments of interest and
principal owed to the Fund, and such defaults could reduce the
Fund’s NAV and income distributions. An economic downturn would
generally lead to a higher non-payment rate, and a high yield
security may lose significant market value before a default occurs.
Moreover, any specific collateral used to secure a high yield
security may decline in value or become illiquid, which would
adversely affect the high yield security’s value.
The debt securities in which the Fund invests are subject to
certain risks, including issuer risk, reinvestment risk, prepayment
risk, credit risk, and interest rate risk. Issuer risk is the risk
that the value of fixed-income securities may decline for a number
of reasons which directly relate to the issuer. Reinvestment risk
is the risk that income from the Fund’s portfolio will decline if
the Fund invests the proceeds from matured, traded or called bonds
at market interest rates that are below the Fund portfolio’s
current earnings rate. Prepayment risk is the risk that, upon a
prepayment, the actual outstanding debt on which the Fund derives
interest income will be reduced. Credit risk is the risk that an
issuer of a security will be unable or unwilling to make dividend,
interest and/or principal payments when due and that the value of a
security may decline as a result. Interest rate risk is the risk
that fixed-income securities will decline in value because of
changes in market interest rates.
Senior Loans are structured as floating rate instruments in
which the interest rate payable on the obligation fluctuates with
interest rate changes. As a result, the yield on Senior Loans will
generally decline in a falling interest rate environment, causing
the Fund to experience a reduction in the income it receives from a
Senior Loan. In addition, the market value of Senior Loans may fall
in a declining interest rate environment and may also fall in a
rising interest rate environment if there is a lag between the rise
in interest rates and the reset. Many Senior Loans have a minimum
base rate, or floor (typically, a “LIBOR floor”), which will be
used if the actual base rate is below the minimum base rate. To the
extent the Fund invests in such Senior Loans, the Fund may not
benefit from higher coupon payments during periods of increasing
interest rates as it otherwise would from investments in Senior
Loans without any floors until rates rise to levels above the LIBOR
floors. As a result, the Fund may lose some of the benefits of
incurring leverage. Specifically, if the Fund’s borrowings have
floating dividend or interest rates, its costs of leverage will
increase as rates increase. In this situation, the Fund will
experience increased financing costs without the benefit of
receiving higher income. This in turn may result in the potential
for a decrease in the level of income available for dividends or
distributions to be made by the Fund.
Many financial instruments use or may use a floating rate based
upon the London Interbank Offered Rate (LIBOR), which is being
phased out by the end of 2021. There remains some uncertainty
regarding the future of utilization of LIBOR and the nature of any
replacement rate.
A second lien loan may have a claim on the same collateral pool
as the first lien or it may be secured by a separate set of assets.
Second lien loans are typically secured by a second priority
security interest or lien on specified collateral securing the
borrower’s obligation under the interest and present a greater
degree of investment risk. These loans are also subject to the risk
that borrower cash flow and property securing the loan may be
insufficient to meet scheduled payments after giving effect to
those loans with a higher priority. These loans also have greater
price volatility than those loans with a higher priority and may be
less liquid. However, second lien loans often pay interest at
higher rates than first lien loans reflecting such additional
risks.
The Fund intends to terminate on or about August 1, 2027.
Because the assets of the Fund will be liquidated in connection
with the termination, the Fund may be required to sell portfolio
securities when it otherwise would not, including at times when
market conditions are not favorable, which may cause the Fund to
lose money. The Fund is not a “target term” Fund and its primary
objective is to provide high current income. As a result, the Fund
may not return the Fund’s initial public offering price of $20.00
per share at its termination.
Use of leverage can result in additional risk and cost, and can
magnify the effect of any losses.
The risks of investing in the Fund are spelled out in the
shareholder report and other regulatory filings.
The information presented is not intended to constitute an
investment recommendation for, or advice to, any specific person.
By providing this information, First Trust is not undertaking to
give advice in any fiduciary capacity within the meaning of ERISA,
the Internal Revenue Code or any other regulatory framework.
Financial professionals are responsible for evaluating investment
risks independently and for exercising independent judgment in
determining whether investments are appropriate for their
clients.
The Fund’s daily closing New York Stock Exchange price and net
asset value per share as well as other information can be found at
www.ftportfolios.com or by calling 1-800-988-5891.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200730006044/en/
Press Inquiries: Jane Doyle 630-765-8775 Analyst Inquiries: Jeff
Margolin 630-915-6784 Broker Inquiries: Jeff Margolin
630-915-6784
First Trust High Yield O... (NYSE:FTHY)
Historical Stock Chart
From Jun 2024 to Jul 2024
First Trust High Yield O... (NYSE:FTHY)
Historical Stock Chart
From Jul 2023 to Jul 2024