Pioneer Investments announced today that Pioneer Floating Rate Trust (NYSE: PHD) plans to redeem all of its outstanding auction market preferred shares (AMPS). The fund’s Board of Trustees has authorized a separate third-party debt facility and the redemption of the fund’s outstanding AMPS. The facility will be used to replace the fund’s outstanding AMPS as a form of leverage.
Shares of each series of the fund’s outstanding AMPS will be redeemed in accordance with the schedule below. The redemption price will be equal to the liquidation preference per share (sometimes referred to as “at par”) of each series of AMPS, plus accumulated but unpaid dividends as of the applicable redemption date.
| Series | CUSIP | Total | Liquidation | Aggregate | Redemption Date | |||||||||||||||
| M7 | 72369J201 | 2,434 | $25,000 | $60,850,000 | December 3, 2013 | |||||||||||||||
| W7 | 72369J300 | 2,432 | $25,000 | $60,800,000 | December 5, 2013 | |||||||||||||||
| TH7 | 72369J409 | 2,432 | $25,000 | $60,800,000 | December 6, 2013 | |||||||||||||||
After the refinancing is completed, the fund will continue to employ financial leverage for investment purposes. At this time, Pioneer does not expect the refinancing to affect the fund’s monthly distribution rate per common share.
Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed-end funds are bought and sold in the open market through a stock exchange and frequently trade at prices lower than their net asset value. Net asset value (NAV) is total assets less total liabilities divided by the number of common shares outstanding.
© 2013 Pioneer Investment Management, Inc.
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