Boulder Growth & Income Fund Issues Auction Market Preferred Shares.BOULDER, Colo. -- The Boulder Growth & Income Fund, Inc. (NYSE NYSE See: New York Stock Exchange :BIF BIF In currencies, this is the abbreviation for the Burundi Franc. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) announced today the issuance of $25 million in Auction Market Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , resulting in an increase in the Fund's leverage and total assets. The Fund issued 1,000 shares Auction Market Preferred Shares, Series M28, par value $0.01, liquidation preference of $25,000 per share (the "AMPS"). The Fund was leveraged with a $20 million revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. provided by Custodial Trust Company, a subsidiary of Bear Stearns & Co. The proceeds from the AMPS issuance will be, in part, used to pay off the full outstanding line of credit. Therefore, the net increase in leverage for the Fund will be $5 million. The proceeds of the leverage will be invested in accordance with the Fund's investment objective. The Fund's AMPS received a rating of 'Aaa' by Moody's Investors Services and 'AAA' by Fitch Ratings. Boulder Growth & Income Fund is a non-diversified, closed-end management investment company with an investment objective of total return. The Fund seeks to produce both income and long-term capital appreciation by investing in a portfolio of equity and debt securities. As of Friday, October 14, 2005, the Fund's NAV See navigation system and navigation bar. was $7.61 and the closing market price was $6.58, which is a 13.5% discount to NAV. |
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