CHICAGO, Jan. 18, 2012 /PRNewswire/ -- DNP Select
Income Fund Inc. (NYSE: DNP) and Duff & Phelps Utility and
Corporate Bond Trust Inc. (NYSE: DUC), two closed-end registered
investment companies (the "funds") advised by Duff & Phelps
Investment Management Co. (the "Adviser"), have provided an update
on their efforts to provide additional liquidity to holders of
preferred shares in light of the persistent failures in the auction
markets.
To date each fund has retired a portion of its preferred shares
with monies borrowed under a credit facility. However, as
explained in press releases of November
7 and December 15, 2011 there
are a number of factors that have constrained the funds from
refinancing additional preferred shares with debt.
In order to potentially overcome one of those factors, the board
of directors of the funds has charged the Adviser with formulating
a proposed amendment to the funds' charters that would permit the
funds to negotiate an arrangement allowing the funds to provide
additional liquidity to preferred shareholders by increasing the
funds' use of debt leverage. In response to a number of inquiries
from preferred shareholders, the funds want to clarify that all
series and classes of outstanding preferred shares will be treated
on an equal basis should the funds be able to increase the amount
of debt in their capital structure.
There is no guarantee that the funds will be successful in
utilizing a charter amendment to provide additional liquidity to
preferred shareholders, even if the amendment is approved by
shareholders. The board of directors and the Adviser continue to
believe that any action taken to provide such liquidity should not
materially disadvantage common shareholders and their ability to
benefit from leverage, should be long-term in nature and should not
encumber the funds' investment process or reduce the pool of
available investment alternatives. Because of all the foregoing
considerations, the amount and timing of any future purchases of
preferred shares are uncertain. The funds will announce any such
purchases through press releases and postings to their
websites.
DNP Select Income Fund Inc. is a closed-end diversified
investment management company whose primary investment objectives
are current income and long-term growth of income. The fund seeks
to achieve these objectives by investing primarily in a diversified
portfolio of equity and fixed income securities of companies in the
public utilities industries. For more information, visit
www.dnpselectincome.com or call (800) 864-0629.
Duff & Phelps Utility and Corporate Bond Trust Inc. is a
closed-end diversified investment management company whose primary
investment objective is high current income consistent with
investing in securities of investment grade quality with emphasis
on companies in the public utilities industries. For more
information, visit www.ducfund.com or call (800) 338-8214.
Duff & Phelps Investment Management Co. has more than 28
years of experience managing investment portfolios, including
institutional separate accounts and open- and closed-end funds
investing in utilities, infrastructure and real estate investment
trusts (REITs). For more information, visit www.dpimc.com.
Duff & Phelps is a subsidiary of Virtus Investment Partners
(NASDAQ: VRTS), a multi-boutique asset manager with $33.1 billion under management as of September 30, 2011. Virtus provides investment
management products and services to individuals and institutions
through a multi-manager asset management business, comprising a
number of individual affiliated managers, each with a distinct
investment style, autonomous investment process and individual
brand. Additional information can be found at www.virtus.com.
SOURCE DNP Select Income Fund Inc.