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First Trust/Four Corners Senior Floating Rate Income Fund II Board Announces Approval of Interim Advisory Agreement with First

^{Published on 2010-09-21 05:46:23 - Market Wire}
 

WHEATON, Ill.--([ BUSINESS WIRE ])--First Trust/Four Corners Senior Floating Rate Income Fund II (NYSE: FCT) (the aFunda) announced today that the Funda™s Board of Trustees has approved an interim investment management agreement with First Trust Advisors L.P. (aFTAa), the Funda™s investment advisor. On August 24, 2010, James A. Bowen, President of FTA, entered into a stock purchase agreement to purchase 100% of the general partnership interest of FTA (the aTransactiona). The Transaction is scheduled to be completed in October 2010 and is subject to normal closing conditions. The consummation of the Transaction may be deemed to be an aassignmenta (as defined in the Investment Company Act of 1940, as amended) of the investment management agreement between the Fund and FTA and the sub-advisory agreement among the Fund, FTA and Four Corners Capital Management, LLC (aFour Cornersa), the Funda™s current sub-advisor, which would result in the automatic termination of the agreements. The Board of Trustees of the Fund has approved the interim investment management agreement with FTA, which will be entered into effective upon the closing of the Transaction and will remain in effect for a maximum period of 150days. The investment sub-advisory agreement among the Fund, FTA and Four Corners will not be renewed. The Leveraged Finance Group of FTA will take over day-to-day responsibility for management of the Funda™s portfolio upon the closing of the Transaction. The portfolio management team of the Leveraged Finance Group of FTA will be led by William A. Housey, Jr. and Scott Fries. The Fund will continue to seek its primary investment objective of a high level of current income with a secondary objective to preserve capital. The Fund will continue to pursue these objectives through investment in a portfolio of senior secured floating rate corporate loans.

"First Trust Senior Floating Rate Income Fund II"

A new investment management agreement will be submitted to shareholders of the Fund for approval and would take effect upon such shareholder approval. A special shareholder meeting of the Fund to vote on proposal to approve the new investment management agreement is expected to be held later this year. There can be no assurance that the necessary percentage of the shareholders of the Fund will vote to approve the new investment management agreement.

The Fund also announced today that, subject to requisite regulatory approval, it will change its name to aFirst Trust Senior Floating Rate Income Fund II,a which would be effective upon the consummation of the Transaction. After the name change, it is anticipated that the Fund will continue to trade under the same ticker symbol aFCT.a

For additional information about any closed-end fund advised by FTA, including risks, charges and expenses, please see the Funda™s annual and semi-annual shareholder reports or contact your financial advisor. Each Funda™s daily closing price and daily net asset value, as well as other information, are available to [ www.ftportfolios.com ] or by calling 1-800-988-5891.

FTA and its affiliate First Trust Portfolios L.P. are privately-held companies which provide a variety of investment services, including asset management, financial advisory services, and municipal and corporate investment banking, with collective assets under management or supervision of over $32billion as of August31, 2010 through closed-end funds, unit investment trusts, mutual funds, separate managed accounts and exchange-traded funds.