DNP Select Income Fund Announces Issuance of Senior Notes and Partial Repayment of Committed Lending Facility
July 22, 2016 at 05:02 pm
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The board of directors of DNP Select Income Fund Inc. announced the successful issuance of $300 million of Senior Notes. The fund will use the entire proceeds from the Senior Note issuance to repay $300 million of the $700 million principal outstanding under its committed lending facility. The Senior Notes have been privately placed with institutional investors and will pay interest at fixed rates. The Senior Notes were issued in two series that are scheduled to mature in 7 and 10 years after issuance. The newly issued Senior Notes, like the committed lending facility, will provide leverage for the fund's common shareholders.
DNP Select Income Fund Inc. (Fund) is a closed-end diversified management investment company. The primary investment objectives of the Fund are current income and long-term growth of income. Capital appreciation is a secondary objective. The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. It invests more than 65% of its total assets in securities of public utility companies engaged in the production, transmission or distribution of electric energy, gas, or telephone services. It invests in master limited partnerships, which make distributions that are primarily attributable to return of capital. The Fundâs policy of concentrating its investments in the utilities industry has been developed to take advantage of the characteristics of securities of companies in that industry. The investment advisor of the Fund is Duff & Phelps Investment Management Co.
DNP SELECT INCOME FUND INC. 