DTF Tax-Free Income Fund Announces Redemption of Remarketed Preferred Stock
CHICAGO, Aug. 22, 2013 /PRNewswire/ -- The Board of Directors of DTF Tax-Free Income Inc. (NYSE: DTF), a closed-end fund advised by Duff & Phelps Investment Management Co., today announced the successful placement of $65 million of Variable Rate MuniFund Term Preferred Shares (VMTPs). The Fund will use the proceeds to redeem all 1,300 outstanding shares of its Remarketed Preferred Stock (RP), liquidation preference $50,000 per share (CUSIP: 23334J206). The preferred shares will be redeemed for 100% of their liquidation preference plus accrued and unpaid dividends, if any. The shares will be redeemed on September 20, 2013.
The VMTPs have been privately placed with an institutional shareholder for its own account, and will pay dividends at a variable rate that is set weekly at a spread to the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index and will be mandatorily redeemable five years after issuance. The newly issued VMTPs, like the redeemed RPs, will provide leverage for the fund's common shareholders.
About the Fund
DTF Tax-Free Income Inc. (NYSE: DTF) is a closed-end diversified investment management company whose investment objective is current income exempt from regular federal income tax consistent with preservation of capital. The fund seeks to achieve its investment objective by investing in a diversified portfolio of investment-grade tax-exempt obligations. For more information, visit www.dtffund.com or call (800) 338-8214.
About the Investment Adviser
Duff & Phelps Investment Management Co. has more than 29 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure and real estate investment trusts (REITs). For more information, visit www.dpimc.com.
Duff & Phelps is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a multi-boutique asset manager with $52.7 billion under management as of June 30, 2013. Virtus provides investment management products and services to individuals and institutions through a multi-manager asset management business, comprising a number of individual affiliated managers, each with a distinct investment style, autonomous investment process and individual brand. Additional information can be found at www.virtus.com.
This communication is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
SOURCE DTF Tax-Free Income Inc.