Pioneer Floating Rate Trust (NYSE: PHD) announced today that the
Fund’s Board of Trustees has authorized (subject to certain
conditions) a cash tender offer for up to 50% of the Fund’s
outstanding shares of common stock (the “Shares”) at a price per
Share equal to 98.5% of the Fund’s net asset value per Share as of
the business day immediately following the expiration date of the
tender offer. The commencement of the tender offer will be
announced at a later date. The tender offer will not expire prior
to December 20, 2020. The Fund will pay for any Common Shares
tendered in the Tender Offer prior to December 31, 2020. The Fund
will repurchase Shares tendered and accepted in the tender offer in
exchange for cash. In the event the tender offer is oversubscribed,
Shares will be repurchased on a pro rata basis. 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.
The tender offer is pursuant to a settlement agreement between
the Fund and Saba Capital Management, L.P. (“Saba”) and certain
associated parties. Pursuant to the settlement agreement, Saba has
agreed to immediately withdraw its nominations of three candidates
for election to the Fund’s Board of Trustees and its proposal to
terminate the Fund’s investment advisory agreement with Amundi
Pioneer Asset Management, Inc. and to terminate its pending proxy
contest at the Fund’s 2020 Annual Meeting of Shareholders. During
the effective period of the settlement agreement, Saba has agreed
to (1) be bound by the terms of the settlement agreement, including
to comply with certain standstill covenants, and (2) vote its
Shares in favor of the Board’s nominees, in favor of any proposal
with respect to which the Board recommends a vote in favor of such
proposal, and against any proposal with respect to which the Board
recommends a vote against such proposal. The Fund has been advised
that Saba will file a copy of the settlement agreement with the
U.S. Securities and Exchange Commission as an exhibit to its
Schedule 13D.
Tender Offer Statement
The Fund has not commenced the tender offer described in this
press release. This announcement is not a recommendation, an offer
to purchase or a solicitation of an offer to sell shares of the
Fund and the above statements are not intended to constitute an
offer to participate in any tender offer. Information about the
tender offer, including its commencement, will be provided by
future public announcements. Shareholders will be notified in
accordance with the requirements of the Securities Exchange Act of
1934, as amended, and the Investment Company Act of 1940, as
amended, either by publication or mailing or both. The tender offer
will be made only by an offer to purchase, a related letter of
transmittal, and other documents to be filed with the SEC.
Shareholders of the Fund should read the offer to purchase and
tender offer statement and related exhibits when those documents
are filed and become available, as they will contain important
information about the tender offer. These and other filed documents
will be available to investors for free both at the SEC’s website,
http://www.sec.gov and from the Fund’s website,
https://www.amundipioneer.com/us. There can be no assurance that
any Share repurchases will reduce or eliminate the discount of the
Fund’s market price per Share to the Fund’s net asset value per
Share.
About Pioneer Floating Rate Trust
Pioneer Floating Rate Trust is an NYSE listed closed-end fund
that seeks a high level of current income. It also seeks capital
preservation as a secondary objective to the extent consistent with
its primary objective.
About Amundi Pioneer Asset Management
Amundi Pioneer is the U.S. business of Amundi, Europe’s largest
asset manager by assets under management and ranked among the ten
largest globally[1]. Boston is one of Amundi’s six main global
investment hubs and offers a broad range of fixed-income, equity,
and multi-asset investment solutions in close partnership with
wealth management firms, distribution platforms, and institutional
investors across the Americas, Europe, and Asia-Pacific. Our long
history of proprietary research, robust risk management,
disciplined investment processes, and strong client relationships
has made Amundi Pioneer an investment adviser of choice among
leading institutional and individual investors worldwide. Amundi
Pioneer had approximately $85 billion in assets under management as
of June 30, 2020.
[1] Source IPE “Top 400 asset managers” published in June 2020
and based on AUM as of December 31, 2019.
Cautionary Statement Regarding Forward-Looking
Statements
This press release is not an offer to purchase nor a
solicitation of an offer to sell shares of the Fund. This press
release may contain statements regarding plans and expectations for
the future that constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
(the “PSLRA”), and such statements are intended to qualify for the
safe harbors from liability established by the PSLRA. All
statements other than statements of historical fact are
forward-looking and can sometimes be identified as such by the
context of the statements, including words such as “believe,”
“could,” “expect,” “anticipate,” “plan,” “may,” “will,” “would,”
“should,” “intend,” “possible,” “continue” “project,” “estimate,”
“guidance” and other similar terms and phrases, whether in the
negative or affirmative, although not all forward-looking
statements include these words. Similarly, statements that describe
the objectives, plans, or goals of the Fund or its investment
adviser are forward-looking. Such forward-looking statements are
based upon the Fund’s current plans, estimates and expectations and
are not a representation that such plans, estimates, or
expectations will be achieved. Because such statements include
risks, uncertainties and contingencies, actual events may differ
materially from the expectations, intentions, beliefs, plans or
predictions of the future expressed or implied by such
forward-looking statements. Additionally, past performance is no
guarantee of future results. Additional information concerning such
risks and uncertainties are or will be contained in the Fund’s
filings with the U.S. Securities and Exchange Commission (the
“SEC”), including the Fund’s Annual Report to Shareholders on Form
N-CSR for the fiscal year ended November 30, 2019, and its
subsequent filings with the SEC which are available at
http://www.sec.gov. These factors should be considered carefully
and readers are cautioned not to place undue reliance on such
forward-looking statements. Except as required by applicable law,
the Fund undertakes no obligation to update publicly these
statements for any reason, whether to reflect new information or
the occurrence of unanticipated events or otherwise, following the
date of this press release.
Important Additional Information And Where To Find It
The Fund’s trustees, executive officers, and certain persons
associated with the Fund’s investment adviser and its parent
company are deemed participants in the solicitation of proxies from
the Fund’s shareholders in connection with the matters to be
considered at the 2020 Annual Meeting of Shareholders. On August 3,
2020, the Fund filed a definitive proxy statement and an
accompanying definitive WHITE proxy card with the SEC in connection
with the solicitation of proxies from the Fund’s shareholders in
connection with the matters to be considered at the Fund’s 2020
Annual Meeting of Shareholders. Information regarding the names of
the Fund’s trustees, executive officers, and certain persons
associated with the Fund’s investment adviser and its parent
company and their respective direct or indirect interests in the
Fund by security holdings or otherwise can be found in such
definitive proxy statement, including the schedules and appendices
thereto. INVESTORS AND SHAREHOLDERS ARE STRONGLY ENCOURAGED TO READ
ANY SUCH PROXY STATEMENT AND THE ACCOMPANYING WHITE PROXY CARD AND
OTHER DOCUMENTS FILED BY THE FUND WITH THE SEC CAREFULLY AND IN
THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN
IMPORTANT INFORMATION. Shareholders may obtain the definitive proxy
statement, any amendments or supplements to the proxy statement,
the accompanying WHITE proxy card, and other documents filed by the
Fund with the SEC for no charge at the SEC’s website at
www.sec.gov. Copies will also be available free of charge at the
Fund’s website at https://www.amundipioneer.com/us, by writing to
the Fund’s Secretary at Pioneer Floating Rate Trust, 60 State
Street, Boston, Massachusetts 02109, by contacting the Fund’s
investor relations department at 1.800.859.8508, or by contacting
the Fund’s proxy solicitor, Okapi Partners LLC, toll free at
877.566.1922.
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version on businesswire.com: https://www.businesswire.com/news/home/20200831005692/en/
Prosek Partners Brian Schaffer (646) 818-9229
bschaffer@prosek.com Josh Clarkson (646) 818-9259
jclarkson@prosek.com
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