Franklin Universal Trust Refinances Senior Fixed Rate Notes
August 28, 2018 at 07:23 pm EDT
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Franklin Universal Trust announced that the Trust has refinanced its 2.87% senior fixed rate notes due August 28, 2018, which had an outstanding principal balance of $60 million. The Trust has issued new 3.91% senior fixed rate notes due September 15, 2023, in the principal amount of $65 million, in a private placement. The proceeds of these new notes have been used to retire the 2.87% senior fixed rate notes and will be used for general fund purposes. As a result of the refinancing, the Trust currently has $65 million in notes outstanding. The Trust’s total net assets were $200.0 million as of July 31, 2018.
Franklin Universal Trust (Fund) is a closed-end management investment company. The Fund's primary investment objective is to provide high, current income consistent with preservation of capital. Its secondary objective is growth in income through dividend increases and capital appreciation. It invests primarily in two asset classes: high yield bonds and utility stocks. Within the high yield portion of the portfolio, it uses fundamental research to invest in a diversified portfolio of bonds. Within the utility portion of the portfolio, it focuses on companies with attractive dividend yields and with a history of increasing their dividends. The Fund invests in various industrial sectors, such as Electric Utilities, independent power and renewable electricity producers, metals and mining, multi utilities, oil, gas and consumable fuels, auto components, beverages, biotechnology, building products, communications equipment, and others. Franklin Advisers, Inc. is its investment manager.
FRANKLIN UNIVERSAL TRUST 
