ATLANTA, Dec. 9, 2016 /PRNewswire/ -- Invesco, Ltd. (NYSE: IVZ), today announced it has successfully completed the initial public offering of the Invesco High Income 2023 Target Term Fund (NYSE: IHIT). The new closed-end fund raised $216 million (or 21,600,000 common shares at a price of $10.00 per share) in its common share offering, excluding any exercise of the underwriters' option to purchase additional common shares. If the underwriters exercise that option in full, the fund will have raised approximately $248 million before paying the sales load and offering costs.
The Invesco High Income 2023 Target Term Fund's investment objectives are to seek to provide a high level of current income and to return $9.835 per share to holders of common shares on or about Dec. 1, 2023. The fund seeks to achieve its investment objectives by primarily investing in securities collateralized by loans secured by real properties. The fund began trading on the New York Stock Exchange (NYSE) on November 28, 2016, under the symbol IHIT.
Invesco Advisers, the fund's investment adviser is responsible for the fund's overall investment strategy and its implementation, including the use of leverage. The lead managers of the underwriting syndicate were Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC.
About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned, indirect subsidiary of Invesco Ltd.
Note: There is no assurance that a closed-end fund will achieve its investment objective. Shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.
Important Risk Information
Fund characteristics are subject to change daily. Provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities.
This data is provided for informational purposes only and is not intended for trading or selling purposes. Closed end funds, unlike open end funds, are not continuously offered. There is a one-time public offering and once issued, shares of closed end funds are sold in the open market.
There is no assurance that a closed end fund will achieve its investment objective. Like any stock, a closed end fund's share price will fluctuate with market conditions and other factors. At the time of sale, your shares may have a market price that is above or below net asset value, and may be worth more or less than your original investment. Accordingly, it is possible to lose money investing in the fund.
As the fund approaches its Termination Date, the fund may earn interest income at a more modest rate. As a result, the fund's distributions during the wind-up period of approximately three to six months preceding the Termination Date may consist, in whole or in part, of a return of capital.
Commercial mortgage-backed securities (CMBS) differ from conventional debt securities because principal is paid back over the life of the security rather than at maturity. CMBS are subject to prepayment or call risk, which is the risk that a borrower's payments may be received earlier than expected due to changes in prepayment rates on underlying loans. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool will adversely affect the value of CMBS and will result in losses to the fund.
The fund's anticipated use of leverage by issuing Preferred Shares and other senior debt securities creates special risks for common shareholders, including potential interest rate risks and the likelihood of greater volatility of NAV and market price of, and distributions on, the Common Shares.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/invesco-high-income-2023-target-term-fund-raises-216-million-300376033.html
SOURCE Invesco Ltd.