Floating-rate fund raises $322.5 million in IPO

By Sara Rosenberg

New York, Oct. 29 - The new Floating Rate Income Strategies Fund Inc., which expects to invest a substantial portion of its funds in non-investment grade senior floating-rate loans, raised $322.5 million through an initial public offering of 16.125 million shares of common stock, according to a filing with the Securities and Exchange Commission. Merrill Lynch & Co., Wachovia Securities, McDonald Investments Inc. and SunTrust Robinson Humphrey are the underwriters.

The fund expects to focus on bank loans with Ba/BB or lower ratings, however, it may not invest more than 10% of its total assets in securities and instruments that are rated Caa1 or lower or CCC+ or lower.

Furthermore, the fund may leverage through borrowings, issuance of debt securities, issuance of preferred stock or a combination. Currently the fund plans to borrow money up to approximately 30% of the value of its total assets, the filing said.

The fund will be managed by Kevin Booth and Joseph P. Matteo of Merrill Lynch Investment Management.

© 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.