Franklin Limited Duration Income Trust announces an Equity Buyback for 10% stake.
April 20, 2016 at 09:30 am IST
Share
Franklin Limited Duration Income Trust (AMWX:FTF) announces a share repurchase program. Under the program, the company will repurchase up to 10% of the Fund's common shares in open-market transactions. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements.
In exercising its discretion consistent with its portfolio management responsibilities, the investment manager will take into account various other factors, including, but not limited to, the level of the discount, the Fund's performance, portfolio holdings, dividend history, market conditions, cash on hand, the availability of other attractive investments and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject the Fund to adverse tax consequences. Federal securities laws and rules restrict repurchases and the terms of any outstanding leverage or borrowing of the Fund. The repurchase program will commence on June 1, 2016 and end on March 31, 2017.
Franklin Limited Duration Income Trust (the Fund) is a closed-end management investment company. The Fund's primary objective is to provide high, current income, with a secondary objective of capital appreciation. The Fund invests in a diversified mix of fixed income securities, primarily high yield corporate bonds, floating-rate corporate loans and mortgage-and other asset-backed securities. It invests in various sectors, which include aerospace and defense, airlines, auto components, automobiles, banks, beverage, biotechnology, building products, capital markets, chemicals, commercial services and supplies, construction and engineering, containers and packaging, distributors, electric utilities, entertainment, insurance, media, metals and mining, Internet and direct marketing retail, information technology services, oil, gas and consumable fuels, paper and forest products, and wireless telecommunication services. The Fund's investment manager is Franklin Advisers, Inc.