Deutsche High Income Trust (KHI) Announces Termination of Trust & Liquidating Distribution to Shareholders by November 30, 20...
26 Febrero 2016 - 4:00PM
Business Wire
Deutsche High Income Trust (NYSE:KHI) (the “Fund”) announced
today that the Board of Trustees has approved the termination of
the Fund, pursuant to which KHI will make a liquidating
distribution to shareholders no later than November 30, 2016. The
Fund also announced that a special meeting of shareholders will be
held on June 30, 2016 at the offices of Deutsche Investment
Management Americas Inc. (“DIMA”) at 345 Park Avenue, New York, NY
10154. As previously disclosed, at the special meeting,
shareholders will consider a proposal to convert the Fund from a
closed-end investment company to an open-end investment company.
The proposal to convert the Fund from a closed-end investment
company to an open-end investment company is being made to satisfy
a requirement of the Fund’s Agreement and Declaration of Trust.
After careful consideration of a range of factors, and in light of
the Board’s approval of the Fund’s termination and liquidating
distribution to shareholders no later than November 30, 2016, the
Board recommends that shareholders vote against the proposal to
convert the Fund to an open-end investment. A discussion of factors
considered by the Board in developing this recommendation will be
set forth in the proxy statement to be provided to Fund
shareholders. Holders of record of common shares of the Fund at the
close of business on April 26, 2016 will be entitled to vote at the
meeting and any adjournments thereof.
DIMA proposed to the Fund’s Board the termination of the Fund
and liquidating distribution pursuant to the terms of a Standstill
Agreement that DIMA and the Fund entered into with Saba Capital
Management L.P. (“Saba”), a large shareholder in the Fund, and
certain parties associated with Saba. Under the terms of the
Standstill Agreement, Saba has agreed, among other things, to vote
in accordance with the Board's recommendation on various matters
affecting KHI, including any proposal to convert KHI to an open-end
investment company. The Fund has been advised that Saba will file a
copy of the Standstill Agreement with the Securities and Exchange
Commission as an exhibit to its Schedule 13D.
Important Information
Deutsche High Income Trust seeks to provide the highest
current income obtainable, consistent with reasonable risk, with
capital gains secondary. Bond investments are subject to
interest-rate and credit risks. When interest rates rise, bond
prices generally fall. Credit risk refers to the ability of an
issuer to make timely payments of principal and interest.
Investments in lower-quality (“junk bonds”) and non-rated
securities present greater risk of loss than investments in
higher-quality securities. Investing in derivatives entails special
risks relating to liquidity, leverage and credit that may reduce
returns and/or increase volatility. Leverage results in additional
risks and can magnify the effect of any gains or losses.
Investing in foreign securities, particularly those of emerging
markets, presents certain risks, such as currency fluctuations,
political and economic changes, and market risks.
Closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and once issued,
shares of closed-end funds are bought and sold in the open market
through a stock exchange. Shares of closed-end funds frequently
trade at a discount to the net asset value. The price of a fund’s
shares is determined by a number of factors, several of which are
beyond the control of the fund. Therefore, a fund cannot predict
whether its shares will trade at, below or above net asset
value.
Past performance is no guarantee of future results.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO
BANK GUARANTEENOT A DEPOSIT • NOT INSURED BY ANY FEDERAL
GOVERNMENT AGENCY
Deutsche Asset Management represents the asset management
activities conducted by Deutsche Bank AG or any of its
subsidiaries. Clients will be provided Deutsche Asset Management
products or services by one or more legal entities that will be
identified to clients pursuant to the contracts, agreements,
offering materials or other documentation relevant to such products
or services. (R-45685-1 2/16)
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version on businesswire.com: http://www.businesswire.com/news/home/20160226006101/en/
For additional
information:Deutsche Bank Press Office,
212-250-5536orShareholder Account Information,
800-294-4366orDeutsche Closed-End Funds,
800-349-4281
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