CHICAGO, Aug. 22, 2013 /PRNewswire/ -- Duff &
Phelps Utility and Corporate Bond Trust Inc. (NYSE: DUC), a
closed-end fund advised by Duff & Phelps Investment Management
Co., announces its intention to reduce the amount of leverage
utilized by the fund by $65 million
through the following actions on or about September 19, 2013:
- The fund will repay $17.5 million
of the $142.5 million principal
outstanding under its credit facility.
- The fund will redeem all 1,900 shares of the fund's outstanding
Auction Market Preferred Shares, Series TH7, liquidation preference
$25,000 per share (CUSIP:
26432K306). The shares will be redeemed for 100% of their
liquidation preference (an aggregate of $47.5 million) plus accrued and unpaid dividends,
if any.
The reduction in the amount of leverage outstanding is intended
to better align the fund's leverage ratio with current market
conditions and to lessen the potential volatility of the
fund. The reduction in leverage was approved by the fund's
Board of Directors and funding is expected to come from the
maturity and sale of portfolio securities. Upon completion of
the transactions, the amount of leverage outstanding is expected to
constitute approximately 29% of the fund's total assets. The
amount and timing of future changes to the leverage outstanding is
uncertain.
About the Fund
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. The fund seeks
to achieve its objectives by investing substantially all of its
assets in a diversified portfolio of utility income securities,
corporate income securities, mortgage-backed securities and
asset-backed securities. For more information, visit
www.ducfund.com or call (800) 864-0629.
About the Investment Adviser
Duff & Phelps Investment Management Co. has more than 29
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 $52.7 billion under management as of June 30, 2013. 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.
This communication is not an offer to sell securities and is
not soliciting an offer to buy securities in any jurisdiction where
the offer or sale is not permitted.
SOURCE Duff & Phelps Utility and Corporate Bond Trust
Inc.