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THE FIRST AUSTRALIA PRIME INCOME FUND, INC. ANNOUNCES FINAL RESULTS OF RIGHTS OFFERING

 THE FIRST AUSTRALIA PRIME INCOME FUND, INC.
 ANNOUNCES FINAL RESULTS OF RIGHTS OFFERING
 NEW YORK, Oct. 19 /PRNewswire/ -- The First Australia Prime Income Fund (AMEX-PSE: FAX) today announced that a total of 89 percent (or 13,120,016 shares) of the 14,729,753 shares offered during its non- transferable rights offering were subscribed for, at a price of $9.75 per share.
 The offering, which expired at 5 p.m. on Friday, Oct. 9, 1992, resulted in the fund raising approximately US$127.9 million. To date, the First Australia Prime Income Fund's rights offering has been the largest by any closed-end bond fund in the U.S.
 For every full share of common stock owned on the record date, a shareholder was issued one-sixth of a non-transferable right. For each full right held, the shareholder was entitled to subscribe for one share at a price equivalent to 95 percent of the lower of (a) the average of the last reported sale prices of a share of the fund's common stock on the American Stock Exchange on Oct. 9, 1992, (the "pricing date") and the four preceeding business days or (b) the net asset value per share as of the pricing date.
 As the fund traded at a premium during the final week of the rights offering, the subscription price per share was calculated at 95 percent of $10.26, which was the fund's net asset value on the pricing date.
 Brian Sherman, president of the fund, offered the following, "We are extremely pleased with the outcome of this offering. With the subscription price set at $9.75, we believe the offering provided those shareholders who exercised their rights with outstanding value." The share price closed on Friday, Oct. 16, at $10.56.
 Overpayment checks and stock certificates will be mailed out to all shareholders no later than Nov. 6. The fund will include the net proceeds of the offering and the newly issued shares in its calculation of the fund's net asset value per share on or about Oct. 30, 1992.
 The fund's policy is to invest at least 65 percent of its portfolio in Australian issuers or debt securities rated AA or better. The First Australia Prime Income Fund trades on the American Stock Exchange and the Pacific Stock Exchange.
 The fund is advised by EquitiLink Australia Limited and managed by EquitiLink International Management Limited. The dealer-managers for the fund's offering were Merrill Lynch & Co. and Prudential Securities Incorporated.
 -0- 10/19/92
 /CONTACT: Brian Sherman of First Australia Prime Income Fund, Inc., 011-612-258-8222, or Marissa Moretti or Doug Myers of Dewe Rogerson, Inc., 212-688-6840, for First Australia Prime Income Fund, Inc./
 (FAX) CO: The First Australia Prime Income Fund, Inc. ST: New York IN: FIN SU: OFR


LR-OS -- NY087 -- 1760 10/19/92 15:43 EDT
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Publication:PR Newswire
Date:Oct 19, 1992
Words:470
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