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Re: KIO rts valued @ .50The board of trustees (the "Board") of KKR Income Opportunities Fund (NYSE: KIO) (the "Fund") has approved the terms of the issuance of transferable rights ("Rights") by the Fund to its shareholders of record as of the Record Date (as defined below) entitling the holders of these Rights to subscribe (the "Offer") for common shares of beneficial interest (the "Common Shares"). The Board, based on the recommendations and presentations of KKR Credit Advisors (US) LLC, the Fund's investment adviser (the "Adviser") and others, has determined that it is in the best interests of the Fund and the holders of its Common Shares (the "Common Shareholders") to seek to increase the assets of the Fund available for investment and therefore to conduct the Offer. In making this determination, the Board considered a number of factors, including potential benefits and costs (including potential dilution). In particular, the Board considered the Adviser's belief that the Offer would enable the Fund to more fully take advantage of existing and future investment opportunities that may be or may become available, consistent with the Fund's primary investment objective to seek a high level of current income with a secondary objective of capital appreciation. The Offer also seeks to provide an opportunity to existing Common Shareholders to purchase Common Shares at a discount to market price (subject to a sales load). The record date for the Offer is currently expected to be October 19, 2017 (the "Record Date"). The Fund will distribute to Common Shareholders of record on the Record Date ("Record Date Common Shareholders") one Right for each Common Share held on the Record Date. Record Date Common Shareholders will be entitled to purchase one new Common Share for every three Rights held (1 for 3); however, any Record Date Common Shareholder who is issued fewer than three Rights will be entitled to subscribe for one Common Share of the Fund. Fractional Common Shares will not be issued. The proposed subscription period is currently anticipated to expire on November 17, 2017, unless extended by the Fund (the "Expiration Date"). The Rights are transferable and are expected to be admitted for trading on the New York Stock Exchange (the "NYSE") under the symbol "KIO RT" during the course of the Offer. The subscription period will commence on the Record Date and expire on the Expiration Date. Rights may be exercised at any time during the subscription period. The Fund has declared a monthly distribution to Common Shareholders payable on October 31, 2017 with a record date of October 6, 2017, which will not be payable with respect to Common Shares issued pursuant to the Offer. The Fund has also declared a monthly distribution to Common Shareholders payable on November 30, 2017 with a record date of November 6, 2017, which will not be payable with respect to Common Shares that are issued pursuant to the Offer after November 6, 2017, the record date for such distribution. The subscription price per Common Share (the "Subscription Price") will be determined on the Expiration Date, and will be equal to 90% of the average of the last reported sales price of a Common Share of the Fund on the NYSE on the Expiration Date and each of the four (4) immediately preceding trading days (the "Formula Price"). If, however, the Formula Price is less than 82% of the Fund's net asset value ("NAV") per Common Share at the close of trading on the NYSE on the Expiration Date, the Subscription Price will be 82% of the Fund's NAV per Common Share at the close of trading on the NYSE on that day. The estimated Subscription Price has not yet been determined by the Fund. Record Date Common Shareholders who exercise all of their primary subscription Rights will be eligible for an over-subscription privilege entitling Record Date Common Shareholders to subscribe, subject to certain limitations and allotment, for any additional Common Shares not purchased pursuant to the primary subscription. Best Rgds; R |
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Msg # | Subject | Author | Recs | Date Posted |
17340 | Re: KIO rts valued @ .50 | urhmi | 0 | 10/18/2017 2:42:21 PM |