DENVER--(BUSINESS WIRE)--Reaves Utility Income Fund (NYSE American: UTG) has established a subscription price of $29.93 per common share (“Share”) in connection with its previously announced rights offering (“Rights Offering”), which represents 95% of the reported market price per share, based on the average of the last reported sales price of a Share on the NYSE American for the five trading days preceding the October 4, 2017 expiration date (the “Expiration Date”).
The Fund will announce on or around Thursday, October 12, 2017 the final results of the Rights Offering and the number of new Shares issued.
The Fund has determined to issue additional Shares in an amount of up to 25% of the Shares issued pursuant to the primary subscription (the “Secondary Over-subscription Shares”). The Secondary Over-subscription Shares will be allocated only among record date shareholders who submitted over-subscription requests. Secondary Over-subscription Shares will be allocated pro rata among those fully exercising record date shareholders who over-subscribe based on the number of rights originally issued to them by the Fund. If common shareholders do not participate in the secondary over-subscription offer (if any), their percentage ownership may be dilute
This communication is not an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale is not permitted. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The Fund’s prospectus contains this and other information about the Fund. The prospectus can be found on file with the Securities and Exchange Commission and should be read carefully before investing.
The Reaves Utility Income Fund
The investment objective of the Fund is to provide a high level of income and total return consisting primarily of tax-advantaged dividend income and capital appreciation. There were approximately $1.2 billion of net assets under management and 34 million common shares outstanding as of September 30, 2017.
The Reaves Utility Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market’s value.
ALPS Portfolio Solutions Distributor, Inc., FINRA Member.