NEW YORK--(BUSINESS WIRE)--Putnam High Income Securities Fund (NYSE: PCF) (NYSE: PCF - News) (the “Fund”) today made the following announcements:
- The name of the Fund will be changed as soon as possible to “High Income Securities Fund.” Until further notice, the Fund’s trading symbol will continue to be “PCF.”
- As previously announced, Putnam Investment Management, LLC will manage the Fund during a transition period ending on July 23, 2018 after which it is expected that the Fund will be internally managed until further notice
- The Fund’s board of trustees intends to call a special meeting of shareholders to be held as soon as possible to consider proposals to (1) deregister the Fund as an investment company, and (2) change the Fund’s organizational structure from a Massachusetts business trust to a Delaware corporation.
- Pursuant to a settlement agreement of the recent proxy contest conducted by Bulldog Investors, LLC the Fund will, promptly after the special meeting of shareholders, conduct a self-tender offer for at least 55% of the Fund’s outstanding shares at a price of not less than 99% of the net asset value per share.
- The Fund will pay its regular monthly distribution of $0.0283 per share on August 1, 2018 to shareholders of record as of July 24, 2018. The board of trustees will consider whether the Fund will thereafter discontinue the practice of paying monthly distributions.
- In anticipation of the self-tender offer and the proposed deregistration of the Fund, the board of trustees has determined to cause the Fund to sell all or a substantial percentage of its portfolio investments in the near future and to maintain the proceeds of such sales in cash or cash equivalents and not to reinvest them in accordance with the Fund’s current prospectus.
SECTION 19 DISCLOSURE
Putnam High Income Securities Fund
Putnam estimates that $0.0078 per share of Putnam High Income Securities Fund’s dividend is paid from accumulated net investment income, and $0.0205 per share represents a return of capital. These estimates and the sources of the fund's dividends and distributions are determined in accordance with accounting principles applicable to the fund. These principles may vary from those applicable to the characterization of distributions under federal tax law and, accordingly, federal tax law treatment will likely vary from the estimated characterization above. In addition, the sources of dividends are estimated at the time of declaration. Actual results will vary from these estimates. A non-taxable return of capital, if any, cannot be determined until after the end of the fund's fiscal year. In January 2019, you will receive final information as to the federal tax status of this and other distributions from the fund in the preceding calendar year.