Saba Capital Reaches Agreement With Pioneer Floating Rate Trust to Tender 50% of Its Shares
01 September 2020 - 6:00AM
Business Wire
Pioneer Floating Rate Trust to Commence Tender
Offer
Saba Capital Management, L.P. and certain associated parties
(collectively “Saba”) today announced that it has reached an
agreement with Pioneer Floating Rate Trust (NYSE: PHD) (the
“Fund”).
Under the terms of the agreement, the Fund will commence a cash
tender offer for up to 50% of the Fund’s outstanding shares of
common stock at a price per share equal to 98.5% of the Fund’s net
asset value (“NAV”) per share. The tender offer will not expire
prior to December 20, 2020. The Fund will repurchase shares
tendered and accepted in the tender offer in exchange for cash.
Amundi Pioneer Asset Management, Inc., the Fund’s investment
adviser, has agreed with the Board of the Fund to limit ordinary
operating expenses of the Fund for the benefit of the Fund’s
remaining shareholders. Saba has agreed to certain standstill
covenants.
“We believe this agreement is in the best interests of all
shareholders by allowing them the opportunity to tender their
shares at a price close to the Fund’s NAV,” said Paul Kazarian,
Portfolio Manager at Saba. “Importantly, the agreement will benefit
both the Fund’s tendering and non-tendering shareholders, as the
tender price will be accretive to the NAV of the Fund’s remaining
shareholders and Amundi Pioneer Asset Management, Inc. has agreed
with the Fund’s Board to limit ordinary operating expenses of the
Fund going forward. We are grateful to the Board for engaging in
productive and constructive discussions with Saba.”
About Saba Capital
Saba Capital Management, L.P. is an Investment Adviser based in
New York. Launched in 2009, Saba currently manages assets across
three core strategies: Credit Relative Value, Tail Hedge, and
Closed-End Funds.
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version on businesswire.com: https://www.businesswire.com/news/home/20200831005681/en/
Investors Leah Jordan Investor Relations
Leah.Jordan@sabacapital.com
Media Gasthalter & Co. Jonathan Gasthalter/Amanda
Klein 212-257-4170
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