Shareholders Approve the Modification of Investment Policy
July 1, 2008
Chicago, IL
DNP Select Income Fund Inc. (NYSE:DNP) announced the results of its special shareholder meeting held on June 30, 2008. At that meeting the Fund’s shareholders overwhelmingly approved the Board of Directors’ proposal to amend the Fund’s fundamental investment restriction relating to borrowing to allow the Fund to borrow money to the full extent permitted by the Investment Company Act of 1940 and related SEC rules and interpretations.
Nathan Partain, President and Chief Investment Officer of the Fund, commented: "Modifying the fundamental investment restriction that limited the Fund’s borrowings to 15% of the Fund’s total assets enhances our ability to respond to changing market conditions affecting the use of leverage. This change in the Fund’s debt limit is an important step in our ongoing effort to find a solution that will serve the best interests of both common and preferred shareholders and that will relieve the illiquidity in the markets for the Fund's preferred shares."
The Fund has received a commitment from a commercial bank regarding the syndication of a bank loan facility that would be used to redeem shares of the Fund’s preferred stock. However, both the timing and the amount of any bank financing and share redemption are highly uncertain and will depend on a variety of factors, including challenging financial market conditions and regulatory, market and economic factors. Management cannot be certain that the Fund will be able to refinance all or any specified portion of its preferred stock, that credit facilities or other mechanisms can be entered into on terms acceptable to the Fund or that the Fund will be able to effectuate a preferred stock redemption in any specified amount or within any specified time frame. Moreover, there can be no assurance that any alternative forms of leverage used by the Fund will not become prohibitively expensive or unavailable in the future.
« Return to News