Business & Finance
Business and Finance
Business and Finance
Tue, August 31, 2010
Mon, August 30, 2010 BlackRock Build America Bond Trust Raises $1.015 Billion
NEW YORK--([ BUSINESS WIRE ])--BlackRock, Inc. (NYSE:BLK) announced today that the BlackRock Build America Bond Trust (NYSE:BBN), the aTrusta, a non-diversified closed-end registered investment company that invests primarily in taxable municipal securities known as aBuild America Bonds,a has completed pricing its common share initial public offering, which will close on August 31, 2010, raising approximately $1.015 billion (exclusive of the underwriters' overallotment). The total amount raised could be increased to approximately $1.165 billion assuming full exercise of the underwritersa™ overallotment, which may not occur.
"This Trust, which provides investors access to the Build America Bond Program i the fastest growing segment of the $2.8 trillion municipal market i plays a very important role in BlackRocka™s commitment to providing a diverse range of closed-end fund options."
BlackRock Advisors, LLC is the investment advisor to the Trust. The Trust began trading on the New York Stock Exchange on Friday, August 27, 2010. The Trusta™s common shares were distributed through a group of underwriters led by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Morgan Stanley & Co. Incorporated, UBS Securities LLC and Ameriprise Financial Services, Inc.
aWe believe the BlackRock Build America Bond Trust is an attractive fixed income option for investors seeking exposure to taxable municipal securities offering a potential yield advantage and lower default risk than similarly rated corporate bonds, as well as high current income and capital appreciation potential,a said Frank Porcelli, Managing Director and Head of U.S. Retail at BlackRock. Porcelli went on to say, aThis Trust, which provides investors access to the Build America Bond Program i the fastest growing segment of the $2.8 trillion municipal market i plays a very important role in BlackRocka™s commitment to providing a diverse range of closed-end fund options.a
BlackRock will pay the Underwriters a standard expense for advice relating to the structure, sale and distribution of the Trust. This expense is expected to be recorded in the third quarter of 2010.
Like any investment, the price of the Trusta™s shares will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. For more complete information, including risk considerations, charges and expenses, please contact your securities representative or BlackRock, 55 East 52nd Street, New York, NY 10055.
About BlackRock
BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2010, BlackRocka™s AUM was $3.151 trillion. BlackRock offers products that span the risk spectrum to meet clientsa™ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2010, the firm has approximately 8,500 employees in 24 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at [ www.blackrock.com ].
Forward-Looking Statements
This report, and other statements that BlackRock may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to BlackRocka™s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as atrend,a apotential,a aopportunity,a apipeline,a abelieve,a acomfortable,a aexpect,a aanticipate,a acurrent,a aintention,a aestimate,a aposition,a aassume,a aoutlook,a acontinue,a aremain,a amaintain,a asustain,a aseek,a aachieve,a and similar expressions, or future or conditional verbs such as awill,a awould,a ashould,a acould,a amaya or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to risk factors previously disclosed in BlackRocka™s Securities and Exchange Commission (aSECa) reports and those identified elsewhere in this report the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for products or services or in the value of assets under management; (3) the relative and absolute investment performance of BlackRocka™s investment products; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions or divestitures; (7) the unfavorable resolution of legal proceedings; (8) the extent and timing of any share repurchases; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to BlackRock, Barclays PLC, Bank of America Corporation, Merrill Lynch & Co., Inc. or The PNC Financial Services Group, Inc.; (11) terrorist activities and international hostilities, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (12) the ability to attract and retain highly talented professionals; (13) fluctuations in the carrying value of BlackRocka™s investments; (14) the impact of changes to tax legislation and, generally, the tax position of the Company; (15) BlackRocka™s success in maintaining the distribution of its products; (16) the impact of BlackRock electing to provide support to its products from time to time; (17) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions; and (18) the ability of BlackRock to integrate the operations of Barclays Global Investors.
BlackRock's Annual Reports on Form 10-K and BlackRock's subsequent filings with the SEC, accessible on the SEC's website at [ http://www.sec.gov ]and on BlackRocka™s website at [ http://www.blackrock.com ], discuss these factors in more detail and identify additional factors that can affect forward-looking statements. The information contained on our website is not a part of this press release.
