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Reaves Utility Income Fund Announces Preliminary Results of Rights Offering

Nachrichtenquelle: Business Wire (engl.)
07.10.2017, 00:33  |  312   |   |   

Reaves Utility Income Fund (NYSE American: UTG) is pleased to announce preliminary results of its rights offering (“Rights Offering”). The Fund anticipates that it will issue a total of 14,314,706 new common shares on or about October 10, 2017 as a result of the Rights Offering which closed on October 4, 2017 (the “Expiration Date”).

Due to high investor demand (estimated shares requested total between 14.8 million and 16.0 million depending on the receipt of “delivery-guaranteed” subscriptions), the Board of Directors of the Fund elected to exercise the Fund’s over-subscription privilege (as described in the Fund’s Prospectus dated August 28, 2017) thereby increasing the shares available for subscription by 25% over the initial offering. The additional shares issued as part of the over-subscription will be allocated only among record date shareholders who submitted over-subscription requests. Secondary over-subscription shares will be allocated pro rata among those fully exercising Record Date shareholders who over-subscribe based on the number of Rights originally issued to them by the Fund. The total anticipated new common shares to be issued will therefore consist of 11,451,765 shares issued related to the Fund’s primary subscription of shares and an additional 2,862,941 shares issued related to the Fund’s secondary over-subscription of shares.

The foregoing numbers are estimates only. The Fund will announce the final results of the Rights Offering in a press release on or about October 10, 2017.

The subscription price of $29.93 per share was established on the Expiration Date, which represented 95% of the reported market price per share, based on the average of the last reported sales price of a common share on the NYSE American for the five trading days preceding the Expiration Date.

The Reaves Utility Income Fund

The investment objective of the Fund is to provide a high level of income and total return consisting primarily of tax-advantaged dividend income and capital appreciation. There were approximately $1.2 billion of net assets under management and 34 million common shares outstanding as of September 30, 2017.

The Reaves Utility Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market’s value.

ALPS Portfolio Solutions Distributor, Inc., FINRA Member.

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