Update on DNP Preferred Shares
15 August 2008 - 4:36PM
PR Newswire (US)
CHICAGO, Aug. 15 /PRNewswire-FirstCall/ -- At the August 14, 2008
Board meetings the directors of DNP Select Income Fund Inc. (c),
Duff & Phelps Utility and Corporate Bond Trust Inc. (DUC), and
DTF Tax-Free Income Inc (DTF) received an update from the Funds'
management and legal counsel on recent developments affecting the
Funds' remarketed and auction preferred stock. The Boards took note
of the August 7, 2008 announcement by the SEC's Division of
Enforcement that a preliminary settlement had been reached with a
major broker-dealer that had marketed auction rate securities (ARS)
to its customers. The terms of the settlement included an
undertaking by the broker-dealer to purchase ARS at full face value
from its retail customers within three months and to provide
no-cost loans to those customers until the ARS are purchased. The
broker-dealer also agreed to use its best efforts to liquidate ARS
from its institutional customers by the end of 2009. On August 8,
2008, the SEC's Division of Enforcement announced that a similar
preliminary settlement had been reached with a second major
broker-dealer. In the days following these announcements, several
other major broker-dealers announced voluntary undertakings to
purchase ARS from their customers. The Funds' management believes
that many holders of the Funds' preferred stock are customers of
these major broker-dealers, and that additional broker-dealers are
likely to announce similar undertakings in the future. The Boards
view the steps that broker-dealers are taking to provide liquidity
to their customers who are holders of ARS as a positive
development. Because it appears that these steps may lead to a
resolution of the illiquidity that the Funds' preferred
shareholders have experienced since February of this year, the
Boards have accepted management's recommendation to suspend the
efforts to obtain a credit facility from commercial banks that had
been envisioned as a way of funding a redemption by DNP and DUC of
some or all of their preferred stock. The Boards and management of
the Funds will continue to monitor developments affecting the
liquidity of the Funds' preferred stock. DNP Select Income Fund
Inc. is a closed-end diversified investment management company. The
Fund's primary investment objectives are current income and
long-term growth of income. The Fund seeks to achieve these
objectives by investing primarily in a diversified portfolio of
equity and fixed income securities of companies in the public
utilities industry. For more information, visit the Fund's website
at http://www.dnpselectincome.com/ or call the Fund at (800)
864-0629. DATASOURCE: DNP Select Income Fund Inc. CONTACT: Joseph
C. Curry, Jr., +1-502-588-8602, or Dianna P. Wengler,
+1-502-588-8603, or Timothy P. Riordan, +1-502-588-1786, all for
DNP Select Income Fund Inc. Web site:
http://www.dnpselectincome.com/
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