DTF Tax-Free Income Entered into a Standstill Agreement with Karpus Investment
November 30, 2020 at 04:38 pm EST
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On November 23, 2020, DTF Tax-Free Income Inc entered into a standstill agreement with Karpus Investment Management pursuant to which the Company announced a tender offer for up to 17.5% of the Company's outstanding common stock at a price equal to 98% of the net asset value at the closing of trading on the date the tender offer expires, which is expected to be by early March, 2021. Karpus agreed to certain customary standstill provisions, effective as of the date of the agreement until November 23, 2023, prohibiting it from, among other things, seeking, making, proposing or participating in (i) any solicitation of proxies, (ii) any tender or exchange offer, recapitalization, dissolution or other extra-ordinary transaction, other than the tender offer, (iii) any short sale or other transaction that derives value from a decline in the market price of the Company’s securities, (iv) the formation of any group within the meaning of section 13(d)(3) of the exchange act, (v) any nomination, contested solicitation for the removal of directors, or other effort to gain board representation, (vi) any proposals for consideration by shareholders at an annual or special meeting of shareholders, or (vii) any public statement or proposal to change the number of directors, change the capitalization of the Company or otherwise effect material change to the Company’s management, business, policies, or corporate structure.
DTF Tax-Free Income 2028 Term Fund Inc. (the Fund) is a closed-end diversified investment management company. The Fund's investment objective is current income exempt from regular federal income tax consistent with the preservation of capital. The Fund may not invest more than 25% of its total assets (taken at market value at the time of each investment) in the securities of issuers in a single industry; provided that, for purposes of this restriction, tax-exempt securities of issuers that are states, municipalities or their political subdivisions are not considered to be the securities of issuers in any single industry. The Fund seeks to achieve its investment objective by investing in a diversified portfolio of investment-grade tax-exempt obligations. The Fund invests across sectors, such as special tax, education, healthcare, leasing and transportation. Duff & Phelps Investment Management Co. serves as an investment fund adviser.