Franklin Limited Duration Income Trust announces an Equity Buyback for 15% of its issued and outstanding common shares.
January 19, 2017 at 10:30 am IST
Share
Franklin Limited Duration Income Trust (AMWX:FTF) announces a share repurchase program. Under the tender offer, the company will repurchase for cash up to 15% or 3,988,963 shares of its issued and outstanding common shares. Purchases will be made at a price per share equal to 98% of the Fund's net asset value per share ("NAV") as of the close of trading on March 6, 2017 and if more shares are tendered than the amount the Board has authorized for purchase, the fund will purchase a number of shares equal to the offer amount on a prorated basis. The Fund will first use cash on hand to pay for shares tendered, and then sell portfolio securities to raise any additional cash needed for the purchase of shares. The purpose of the offer is to reduce market discount in the Fund's Shares while also providing shareholders with the opportunity to sell some or all of their Fund shares at a price close to NAV. The tender offer will commence on January 30, 2017 and will expire on March 3, 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.
FRANKLIN LIMITED DURATION INCOME TRUST 
