First Trust Advisors L.P. (“FTA”) today announced that the reorganizations of First Trust Strategic High Income Fund (NYSE: FHI) and First Trust Strategic High Income Fund III (NYSE: FHO) with and into First Trust Strategic High Income Fund II (NYSE: FHY) are effective as of the opening of business of the New York Stock Exchange on October 3, 2011. In the applicable reorganization, FHY acquired substantially all of the assets and liabilities of FHI and FHO in tax-free transactions in exchange for an equal aggregate value of newly-issued common shares of FHY. Common shareholders of FHI and FHO received common shares of FHY with a net asset value equal to the aggregate net asset value of their respective common shares as determined at the close of business on September 30, 2011, which includes the costs of the applicable reorganization (cash was distributed for any fractional common shares).
Relevant details pertaining to the reorganizations are as follows:
|Fund||NAV/Share ($)||Conversion Ratio|
|First Trust Strategic High Income Fund (FHI)||$3.7490||0.745047|
|First Trust Strategic High Income Fund II (FHY)||$5.0319||N/A|
|First Trust Strategic High Income Fund III (FHO)||$4.3795||0.870347|
Prior to the open of business on October 3, 2011, FHY also completed a previously announced 1-for-3 reverse share split, which resulted in every three outstanding FHY shares after the reorganizations being converted into one share. FHY’s shares continue to trade on a reverse split-adjusted basis under the same ticker symbol, FHY, with a new CUSIP number, 337353304.