Saba Capital Management Enters into Standstill Agreement with Invesco Senior Income
June 17, 2019 at 04:38 pm
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On June 14, 2019, Saba Capital Management, L.P announced that it entered into a standstill agreement with the Invesco Senior Income Trust and Invesco Advisors, Inc. Saba Capital Management stated that the standstill parties agreed, among other things, and subject to certain conditions, that the Board of Trustees of the Company will cause the Company to commence a tender offer to purchase for cash 15% of its outstanding common shares at a price per common share equal to 98.5% of the Company’s net asset value, subject to certain terms and conditions, with such tender offer to be completed not prior to December 1, 2019 and not later than January 1, 2020. In addition, Saba Capital agreed to withdraw its proposed nominees to serve as trustees of the Company as well as its proposal seeking a shareholder vote regarding the classified board structure of the Company and agreed to tender all of its then-owned common shares of the Company in the tender offer.
Invesco Senior Income Trust (the Trust) is a closed-end management investment company. The Trust's investment objective is to provide a high level of current income, consistent with preservation of capital. The Trust seeks to achieve its objectives by investing primarily in a portfolio of interests in floating or variable senior loans to corporations, partnerships, and other entities which operate in a variety of industries and geographic regions. It borrows money for investment purposes which may create the opportunity for enhanced return, but also should be considered a speculative technique and may increase the Trust's volatility. The Trust may participate in direct lending opportunities through its indirect investment in the Invesco Senior Income Loan Origination LLC. It invests in various sectors, including aerospace and defense, automotive, beverage and tobacco, building and development, and chemicals and plastics. The Trust's investment adviser is Invesco Advisers, Inc.