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First Trust/Highland Capital Floating Rate Income Fund and First Trust/Highland Capital Floating Rate Income Fund II Announce C

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  Published in Business and Finance on Tuesday, May 26th 2009 at 12:36 GMT, Last Modified on 2009-05-26 12:36:36 by Market Wire
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 TORONTO, May 26 /CNW/ - First Trust/Highland Capital Floating Rate Income Fund (TSX:FHT.UN) and First Trust/Highland Capital Floating Rate Income Fund II (TSX: FHM.UN) (each a "Fund") announce a change in the date of the upcoming meeting of unitholders of each Fund. The meetings will be held on July 14, 2009. As previously announced, the meetings will be held to consider a resolution (the "Merger Resolution") to approve the merger of the two Funds and all other matters ancillary thereto. In addition, the unitholders of each Fund will be asked to consider resolutions (the "Amendment Resolutions") to amend the provisions of the declaration of trust of each Fund as follows: (a) to cap the number of Units of a Fund that may be redeemed at the net asset value per Unit in 2010 and 2011 at 10% of outstanding Units with redeeming unitholders being dealt with on a pro rata basis if the cap is exceeded, (b) to change the termination provisions of the Fund to permit the trustee of the Fund to terminate the Fund in the event that the Fund is no longer economically feasible or if it is in the best interests of the Fund, and (c) to permit certain additional securities offerings where the net proceeds of the offering may be less than the net asset value per Unit. Each Amendment Resolution will be a distinct resolution, separate from the Merger Resolution, and will be more fully described in the information circular to be sent to unitholders of the Funds in mid-June. In addition, if the Merger Resolution is not approved at the meetings by one or both Funds, unitholders of the Funds will be asked to consider a resolution to terminate the Funds.

For further information: First Defined Portfolio Management Co., (416) 865-8065, (877) 622-5552