Deutsche High Income Trust Announces Additional Details Regarding Its Liquidation
13 Juillet 2016 - 11:00PM
Business Wire
Deutsche High Income Trust (NYSE:KHI) (the “Fund”)
announced today that its Board of Trustees has approved a Plan of
Liquidation and Termination for the Fund (the “Plan”) related to
the previously approved liquidation of the Fund to occur on or
before November 30, 2016. As further described below, pursuant to
the Plan, a final liquidating distribution is expected to be made
on or about November 11, 2016.
Under the terms of the Plan, the “Cessation Date” for the Fund’s
planned liquidation is expected to occur on or about November 4,
2016. As provided in the Plan, at the close of business on the
Cessation Date, the Fund will cease to engage in any business
activities, except for the purpose of liquidating and winding up
its affairs, and the books of the Fund will be closed. Effective
the business day following the Cessation Date, the Fund’s shares
will not be transferable (except for the settlement of prior
transactions), and it is anticipated that trading in the Fund’s
shares on the New York Stock Exchange will cease. The Fund will
subsequently seek to reduce all remaining portfolio securities to
cash or cash equivalents and make a final liquidating distribution
to shareholders on or about November 11, 2016. All Fund
shareholders as of the close of business on the Cessation Date will
be entitled to receive a liquidating distribution. The Cessation
Date may be extended if necessary or appropriate in connection with
the orderly liquidation of the Fund or to protect the interests of
Fund shareholders.
Prior to the Cessation Date, the Fund intends to reduce and
eliminate its financial leverage by paying back its bank line of
credit. It is anticipated that the Fund’s de-levering will occur in
stages over time and, subject to portfolio management’s discretion,
may be completed as early as mid to late August. In addition, prior
to the Cessation Date and subject to portfolio management’s
discretion, the Fund intends to begin the process of converting its
portfolio securities to more liquid investments, including cash or
cash equivalents. As the Fund de-levers and begins to transition
its portfolio to more liquid investments, its net investment income
may decline, which, in turn, may reduce its remaining regular
monthly dividends. The Fund’s last anticipated regular monthly
dividend will be for the month of October. The Fund does not expect
to pay its regular November monthly dividend. Any net investment
income earned in November would consequently be included as part of
the Fund’s final liquidating distribution to shareholders.
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.
Certain statements contained in this release may be
forward-looking in nature. These include all statements relating to
plans, expectations, and other statements that are not historical
facts and typically use words like “expect,” “anticipate,”
“believe,” “intend,” and similar expressions. Such statements
represent management’s current beliefs, based upon information
available at the time the statements are made, with regard to the
matters addressed. All forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those expressed in, or implied by, such statements.
Management does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. The following
factors, among others, could cause actual results to differ
materially from forward-looking statements: (i) the effects of
adverse changes in market and economic conditions; (ii) legal and
regulatory developments; and (iii) other additional risks and
uncertainties.
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-047319-1 7/16)
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version on businesswire.com: http://www.businesswire.com/news/home/20160713006493/en/
For additional
information:Deutsche Bank Press Office,
212-250-7171Shareholder Account Information,
800-294-4366Deutsche Closed-End Funds, 800-349-4281
Deutsche High Income Trust (NYSE:KHI)
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