TORONTO, April 9 /CNW/ - The Board of Directors of FT Floating Rate
Management Inc., the manager of First Trust/Highland Capital Floating Rate
Income Fund (the "Terminating Fund") and the Board of Directors of FT (NSI)
Floating Rate Management Co., the manager of First Trust/Highland Capital
Floating Rate Income Fund II (the "Continuing Fund") jointly announce that a
meeting of unitholders of the Terminating Fund and the Continuing Fund will be
held for the purpose of voting on a proposal to merge (the "Merger") the
Continuing Fund and the Terminating Fund (collectively, the "Funds").
Additionally, unitholders of the Continuing Fund will be asked to amend the
investment strategy and certain of the investment restrictions of the
Continuing Fund to permit the direct investment in senior loans. It is
anticipated the meeting will be held in June of this year.
As previously disclosed, a reduction in the assets of each of the Funds
and termination of the credit facilities that previously enabled the Funds to
leverage their respective assets have made it increasingly difficult to manage
the assets of the Funds. It is anticipated that the Merger will achieve
certain cost efficiencies and enable more effective management of the
consolidated assets. Accordingly, the managers will ask the unitholders of the
Funds to vote to terminate the Funds if the Merger is not approved.
The Merger may be subject to the regulatory approval and the consent of
certain arm's length service providers. All costs and expenses associated with
the Merger or Termination and the associated unitholder meetings will be borne
by the applicable fund.
More information regarding the two alternative courses of action will be
provided to unitholders of the Funds in a joint management information
circular to be disseminated in connection with the meetings.
Additional information about the Funds is available at www.sedar.com.
Certain statements included in this news release constitute
forward-looking statements, including, but not limited to, those identified by
the expressions "expect", "intend", "will" and similar expressions to the
extent they relate to the Continuing Fund, Terminating Fund or a manager
thereof. The forward-looking statements are not historical facts but reflect
current expectations regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current expectations
including delays in or inability to obtain regulatory or unitholder approvals
or to satisfy other closing conditions, fluctuations in interest rates and
foreign currency exchange rates, conditions in the credit markets (both in
general and the leveraged loan market), leveraged loan default rates as well
as general economic, market and business conditions, fluctuations in
securities prices and actions by governmental authorities. Although the funds
believe that the assumptions inherent in the forward-looking statements are
reasonable, forward-looking statements are not guarantees of future
performance and, accordingly, readers are cautioned not to place undue
reliance on such statements due to the inherent uncertainty therein. The funds
and their managers undertake no obligation to update publicly or otherwise
revise any forward looking statement or information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
For further information:
For further information: Fraser Howell, President and Chief Financial
Officer, (416) 865-8065 or 1-877-622-5552