5.Purchases and Sales of Securities
For the six months ended May 31, 2020, the cost of purchases and proceeds from sales of securities, excluding short-term investments, aggregated $13,174,516 and $15,570,176, respectively.
At May 31, 2020, the aggregate cost of securities for federal income tax purposes was $221,796,961, the aggregate gross unrealized appreciation for all securities in which there was an excess of value over tax cost was $11,966,412 and the aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value was $7,381,324.
6.Common Stock
At May 31, 2020, 240,000,000 shares of $0.01 par value Common Stock were authorized.
Common Stock transactions were as follows:
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Six Months Ended
05/31/20
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Year Ended
11/30/19
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Shares
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Amount
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Shares
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Amount
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Shares issued under the Dividend Reinvestment and Cash Purchase Plan
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31,525
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440,280
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44,786
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$
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623,393
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7.Preferred Stock
The Fund’s Articles of Incorporation authorize the issuance of up to 10,000,000 shares of $0.01 par value preferred stock. The Fund does not currently have any issued and outstanding shares of preferred stock.
8.Committed Financing Agreement
The Fund has entered into a committed financing agreement with BNP Paribas Prime Brokerage International, LTD. (“Financing Agreement”) that allows the Fund to borrow on a secured basis, which the Fund uses in the normal course of business as financial leverage. Such leveraging tends to magnify both the risks and opportunities to Shareholders. The Financing Agreement has been amended from time to time to allow for changes in the committed amount. As of May 31, 2020, the committed amount, and amount borrowed, under the Financing Agreement was $80.1 million.
Effective September 1, 2017, the lender charges an annualized rate of one-month LIBOR (reset monthly) plus 0.80% on the drawn (borrowed) balance. The lender’s charges on the undrawn (committed) balance remain unchanged at an annualized rate of 0.65%. For the six months ended May 31, 2020, the daily weighted average annualized interest rate on the drawn balance was 2.044% and the average daily loan balance was $80,100,000. LIBOR rates may vary in a manner unrelated to the income received on the Fund’s assets, which could have either a beneficial or detrimental impact on net investment income and gains available to Shareholders.