Morningstar, Inc. Commentaries
Feb 18, 2014
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Pioneer High Income (PHT) announced last Tuesday that it plans to redeem all of its outstanding auction-rate preferred shares at par, totaling about $150 million. The board of directors plans to finance the redemption with the authorization of a third-party debt facility. The refinancing will be completed March 18, 2014. Considering that alternative forms of leverage financing are typically more expensive than ARPS, investors should expect an increase in the fund's total expense ratio.