DNP Select Income Fund Inc. Will Redeem Auction Preferred Stock, Series W
26 Mai 2009 - 2:00PM
PR Newswire (US)
CHICAGO, May 26 /PRNewswire-FirstCall/ -- DNP Select Income Fund
Inc. (NYSE:DNP), a closed-end registered investment company advised
by Duff & Phelps Investment Management Co., announced today
that the Fund will redeem a series of its preferred securities as
part of its stated intent to retire all its preferred stock. The
Fund will redeem all 4,000 outstanding shares of its Auction
Preferred Stock, Series W, liquidation preference $25,000 per share
(CUSIP: 23325P880). The shares will be redeemed on May 28, 2009.
Redemption of the shares, which was approved by the Fund's board,
has been financed by the previously announced credit facility that
is intended to ultimately finance redemptions of up to $900 million
of DNP preferred shares. Management anticipates that the Fund will
retire additional shares of preferred stock during the second
quarter of 2009, although there is no assurance as to the amount or
timing of additional redemptions. The Fund is currently constrained
in its ability to refinance all of its outstanding preferred stock
with debt by the asset coverage requirements of the Investment
Company Act of 1940. Therefore, the Fund has applied to the U.S.
Securities and Exchange Commission for an exemptive order enabling
the Fund, for a transitional period, to maintain 200% asset
coverage with respect to debt leverage that is used to redeem
preferred stock, rather than the 300% required by the Act. There is
no assurance that such an exemptive order will be granted. The Fund
will announce any subsequent redemptions through press releases and
postings to its website, http:/www.dnpselectincome.com. Moody's
Investors Service, Inc. and Standard & Poor's recently
reaffirmed their respective "Aaa" and "AAA" credit ratings assigned
to all series of the Fund's preferred shares in connection with the
Fund's establishment of the credit facility. DNP Select Income Fund
Inc. is a closed-end diversified investment management company
whose primary investment objectives are current income and
long-term growth of income. The fund seeks to achieve these
objectives by investing primarily in a diversified portfolio of
equity and fixed income securities of companies in the public
utilities industries. For more information, visit
http://www.dnpselectincome.com/ or call (800) 864-0629. Duff &
Phelps Investment Management Co. has more than 28 years of
experience managing investment portfolios, including institutional
separate accounts and open- and closed-end funds investing in
utilities, infrastructure and real estate investment trusts
(REITs). For more information, visit http://www.dpimc.com/. Duff
& Phelps is a subsidiary of Virtus Investment Partners (NASDAQ:
VRTS), an asset management company with $20.8 billion under
management (as of March 31, 2009). Virtus provides investment
management products and services to individuals and institutions
through a multi-manager asset management business, comprising a
number of individual affiliated managers, each with a distinct
investment style, autonomous investment process and individual
brand. Additional information can be found at
http://www.virtus.com/. DATASOURCE: DNP Select Income Fund Inc.
CONTACT: Joseph C. Curry, Jr., Dianna P. Wengler, or Timothy P.
Riordan, +1-888-878-7845, all for DNP Select Income Fund Inc. Web
Site: http://www.dnpselectincome.com/
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