Morgan Keegan's RMK High Income fund raises $247.5 million in IPO

New York, June 25 - RMK High Income Fund, Inc., a new junk bond portfolio, raised $247.5 million in its initial public offering.

The closed-end fund will seek a high level of current income with capital appreciation as a secondary investment objective.

The fund will invest a majority of its assets in securities rated below investment grade including corporate bonds, mortgage- and asset-backed securities, convertible debt securities and municipal and foreign government obligations, according to the prospectus filed with the Securities and Exchange Commission.

No more than 10% of assets will be in securities rated below CCC or a comparable level.

The size of the fund could be increased by up to 15% of the greenshoe is exercised. The fund intends to use leverage up to 30% of its total assets.

James C. Kelsoe of Morgan Asset Management is the portfolio manager for the fund. Morgan Asset Management, located in Birmingham, Ala., also manages the Morgan Keegan Select funds and is a subsidiary of MK Holding, Inc., in turn a subsidiary of Regions Financial Corp.

"The offering has been a tremendous success. We believe the fund's broad diversification across multiple asset classes offers investors a unique means to invest in high-yield securities. Investing in corporate and convertible bonds, as well as structured-finance securities, should enhance its potential to provide a high level of current income and solid total return," Kelsoe said in a news release.

The fund will trade under the ticker "RMH" on the New York Stock Exchange.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.