Morningstar, Inc. Commentaries
Feb 25, 2014
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Capital Structure Changes
DNP Select Income (DNP) announced the successful placement of $267 million of floating-rate mandatory redeemable preferred shares, or MRPS. The fund will use the proceeds to redeem all outstanding shares of Series D and Series E remarketed preferred stock. The preferred shares will be redeemed for 100% of their liquidation preference plus accrued and unpaid dividends. The Series D shares will be redeemed March 12, 2014, and the Series E shares will be redeemed March 19, 2014. The fund will use the remaining proceeds from the MRPS placement to repay $128.8 million of the $861.8 million principal outstanding under its credit facility.