New Palmer Square fund to invest in debt securities via stock proceeds

By Toni Weeks

San Luis Obispo, Calif., Sept. 5 – Palmer Square Opportunistic Income Fund is launching with a public sale of its common shares, according to a 497 filing with the Securities and Exchange Commission. The fund’s inception date was Aug. 29.

The newly organized, non-diversified, closed-end investment company seeks a high level of current income with long-term capital appreciation as a secondary objective. Under normal circumstances, it invests at least 80% of its net assets in debt securities and/or income-producing securities of any maturity and credit quality. The types of debt securities may include, among others, collateralized debt obligations; corporate bonds, notes and debentures; securities issued or guaranteed by the U.S. government, its agencies, instrumentalities or sponsored entities; senior secured floating-rate and fixed-rate loans or debt; second-lien or other subordinated or unsecured floating-rate and fixed-rate loans or debt; and other fixed-, floating- or variable-interest-rate securities. The fund may invest in both U.S.-dollar-denominated and non-U.S.-dollar denominated loans and securities as well as securities of foreign issuers.

Angie K. Long and Christopher D. Long are the portfolio managers.

The fund plans to sell 12.5 million shares at the current public offering price of $20.60 for proceeds of $257.5 million. It plans to offer its shares on a continuous basis.

Investments may be subject to a sales load of up to 3%. Management fees of 1% and the effect of a fee waiver and expenses reimbursement agreement are included in the expected total annual fund operating expenses of 1.53%.

Proceeds will be used to make investments according to the fund’s investment objectives and policies.

Mission Woods, Kan.-based Palmer Square Capital Management LLC is the investment adviser.

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