2002 Target Term Trust dividend & share repurchase announcement.NEW YORK--(BUSINESS WIRE)--June 9, 1995--2002 Target Term Trust, Inc. (NYSE NYSE See: New York Stock Exchange :TTR TTR Transthyretin TTR Ticket To Ride (World Snowboard Tour) TTR Transformer Turns Ratio (electric power transmission and distribution) TTR Time To Repair TTR Time to Read ), (the "Trust") a diversified, closed-end management investment company, seeks to manage a portfolio of high quality, fixed income and adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. securities in order to return $15.00 per share (the initial public offering price) to investors on or about Nov. 30, 2002, while providing high monthly income. Mitchell Hutchins Asset Management Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of PaineWebber Incorporated, serves as the Trust's Investment Adviser and Administrator and Goldman Sachs Funds Management L.P. Services serves as the Trust's Sub-Adviser. The Trust announced today that its Board of Directors has declared a monthly dividend of $0.0718 per share, a $0.00625 per share reduction from the Trust's previous dividend of $0.0781 per share. The dividend is payable on June 30, 1995, to shareholders of record as of June 16, 1995. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. is June 14, 1995. Simultaneously, the Trust's Board of Directors announced a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program aimed at reducing the Trust's discount to net asset value. The Trust can buy, daily, up to 25% of the average daily trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. for the four weeks prior to the period of the share repurchase in the open market. It is anticipated that the share repurchase program will commence on or about July 7, 1995, or shortly thereafter. PaineWebber Incorporated's 19c-3 desk will not be trading the Trust for the four week period prior to, and for the duration of, the share repurchase. The Trust's shares, however, will continue to trade on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . As of June 2, 1995, the Trust's net asset value was $13.88 and its market price was $12.13, trading at a 12.6% discount to net asset value. Although, based on current market conditions, it is unlikely that the Trust will be able to return a full $15.00 per share to investors on or about November 30, 2002, the Sub-Adviser intends to manage the Trust so that the amount available to distribute to shareholders upon termination will be as close as possible to the initial offering price. The Trust will consider measures for example, the sale of the zero coupon municipal securities, to help maximize the amount the Trust will return to shareholders on termination. Both the Trust's Investment Adviser and Sub-Adviser believe that the actions announced today will enhance the Trust's ability to increase the return to shareholders. CONTACT: Linda Buckley 201/902-5450 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion