RAC INCOME FUND ANNOUNCES EQUITY RIGHTS OFFERING
RAC INCOME FUND ANNOUNCES EQUITY RIGHTS OFFERING COLUMBIA, Md., Nov. 1 /PRNewswire/ -- RAC Income Fund (NYSE: RMF)
today announced that it plans to file a Form N-2 registration statement with the Securities and Exchange Commission for an equity rights offering.
Subject to the registration statement becoming effective under the Securities Act of 1933, shareholders will receive one right for each full share of common stock owned as of the record date. These rights entitle the holder to acquire one share for each five rights held. This offering will cover the right to subscribe for an aggregate of approximately 2 million shares of common stock of the fund. Shareholders are entitled to the additional privilege of over- subscribing for any shares not acquired by exercise of primary subscription rights, subject to certain limitations. The subscription price will be determined on the pricing date. This will be after the expiration date, the last day shareholders have to exercise their subscription rights. The price will be the greater of: (A) 95 percent of the share's price based on the average closing price for five consecutive trading days ending on the pricing date or (B) the net asset value per share of the fund on the pricing date. "We are pleased to offer this opportunity to our shareholders," said Thomas H. Potts, president. "This offering will enable them to purchase additional shares at a favorable price. Mortgage securities continue to offer favorable yields relative to many other investments of comparable credit quality." The rights are non-transferable and will not be listed for trading on the New York Stock Exchange. The timing for this offering will depend on market conditions and other factors. RAC Income Fund, a closed-end investment fund, primarily invests in fixed income mortgage-backed securities that are rated AAA or AA by a nationally recognized rating agency, or are issued or guaranteed by the U.S. government, its agencies or instrumentalities. The fund's goal is to distribute monthly income that is 150 to 200 basis points greater than the rate obtainable from U.S. Treasury securities, having the same maturity as the expected average life of the fund's investments. -0- 11/1/91 /CONTACT: Sylvia R. Gillan of RAC Income Fund, 301-730-6851/ (RMF) CO: RAC Income Fund, Inc. ST: Maryland IN: FIN SU: OFR JS-KA -- PH019 -- 0270 11/01/91 13:53 EST
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|Date:||Nov 1, 1991|
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