Cohen & Steers Announces $1.4 Billion Financing to Redeem Auction Market
Preferred Securities
NEW YORK, Aug. 12 /PRNewswire-FirstCall/ -- Cohen & Steers announced today
that it has reached agreement on the terms of a $1.4 billion credit facility
that will allow four of its closed-end funds to redeem, at par value,
approximately 55% of their outstanding auction market preferred securities
(AMPS). Upon completion of this latest financing and redemption, more than 50%
of the AMPS issued by all of Cohen & Steers' leveraged closed-end funds will
have been redeemed.
The facility will allow the firm to redeem, on a pro rata basis,* 55% of
the AMPS across all series of Cohen & Steers Select Utility Fund, Inc.
(NYSE: UTF), Cohen & Steers REIT and Utility Income Fund, Inc. (NYSE: RTU),
Cohen & Steers Premium Income Realty Fund, Inc. (NYSE: RPF) and Cohen & Steers
REIT and Preferred Income Fund, Inc. (NYSE: RNP).
"We are pleased to have secured alternative financing on terms that are
favorable for our common shareholders, while providing liquidity for more than
50% of our auction preferred shares," said Martin Cohen, co-chairman and
co-CEO of Cohen & Steers. "Cohen & Steers senior management and the funds'
boards of directors are continuing to evaluate ways to provide liquidity for
the remaining AMPS."
Cohen & Steers expects to close the $1.4 billion facility in the third
quarter and redeem the AMPS shortly thereafter. The firm will issue a press
release as soon as the dates have been set, and will keep all shareholders
informed as further information becomes available. For more information,
please visit www.cohenandsteers.com.
* Redemptions will be allocated among participating broker/dealers by the
Depository Trust Company using a predetermined methodology, and each
broker/dealer allocates the redeemed shares to the underlying beneficiaries
according to its own procedures.
About Cohen & Steers
Cohen & Steers is a manager of income-oriented equity portfolios specializing
in U.S. and international real estate securities, large cap value stocks,
utilities and listed infrastructure, and preferred securities. The company
also offers alternative investment strategies such as hedged real estate
securities portfolios and private real estate multimanager strategies.
Headquartered in New York City, with offices in London, Brussels, Hong Kong
and Seattle, Cohen & Steers serves individual and institutional investors
through a broad range of investment vehicles.
Forward-Looking Statements
This press release and other statements that Cohen & Steers may make may
contain forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
which reflect the company's current views with respect to, among other things,
its operations and financial performance. You can identify these forward-
looking statements by the use of words such as "outlook," "believes,"
"expects," "potential," "continues," "may," "will," "should," "seeks,"
"approximately," "predicts," "intends," "plans," "estimates," "anticipates" or
the negative versions of these words or other comparable words. Such forward-
looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause
actual outcomes or results to differ materially from those indicated in these
statements. The company undertakes no obligation to publicly update or review
any forward-looking statement, whether as a result of new information, future
developments or otherwise.
The following factors, among others, could cause actual results to differ
materially from forward-looking statements: (1) the ability of Cohen & Steers
and the Cohen & Steers closed-end funds that have issued AMPS to develop and
finalize fund-by-fund specific proposals to restructure the leverage of such
funds; (2) the need for such Cohen & Steers funds to obtain formal fund-by-
fund approval from the funds' Board of Directors for certain types of specific
proposals as they are developed and finalized; (3) the ability of such Cohen &
Steers funds to negotiate and obtain from third parties the necessary debt
facilities and other commitments and agreements necessary for the Cohen &
Steers funds to refinance all or a portion of their leverage on terms and
conditions acceptable to the funds and in a timely manner; (4) the ability of
such Cohen & Steers funds to develop new forms of preferred stock that could
replace existing AMPS on terms acceptable to the Cohen & Steers funds and in a
timely manner; (5) the effects of changes in market and economic conditions,
including higher costs and expenses associated with refinancing; (6) other
legal and regulatory developments; and (7) other additional risks and
uncertainties.
SOURCE Cohen & Steers
Francis C. Poli, Executive Vice President and General Counsel, Cohen & Steers
Inc., +1-212-446-9112
