PGIM Short Duration High Yield Opportunities Fund raises $542 million

By PGIM Global Communications — Nov 25, 2020

3 mins read

NEWARK, N.J., Nov. 25, 2020–PGIM Investments has successfully completed the initial public offering of the PGIM Short Duration High Yield Opportunities Fund (the “Fund”). The Fund raised approximately $475 million of proceeds in connection with the offering of its common shares (approximately $542 million assuming full exercise of the underwriters’ overallotment option, which may not occur) and its shares will begin trading today on the New York Stock Exchange (NYSE) under the symbol SDHY. The initial public offering of the Fund’s common shares is scheduled to close on Nov. 30, 2020, subject to customary closing conditions.

PGIM Investments, LLC, the Investment Manager of the Fund, has agreed to pay from its own assets all organizational expenses of the Fund and all offering costs associated with the offering.

Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC served as lead underwriters in connection with the offering.

About the Fund

The Fund’s investment objective is to provide total return through a combination of current income and capital appreciation. The Fund seeks to achieve its objective by investing at least 80% of its assets in a diversified portfolio of high yield fixed income instruments that are rated below investment grade.

The Fund will primarily invest in fixed income investments rated BB or B or deemed equivalent by the Fund’s subadvisor and has a 10% limit on investments rated CCC+ and below.

The Fund generally seeks to maintain a weighted average portfolio duration, including the effects of leverage, of approximately three years or less and a weighted average maturity of approximately five years or less.

Limited Term

The Fund intends to terminate as of the close of business on the ninth anniversary of the effective date of the Fund’s initial registration statement, which will occur on or about Nov. 30, 2029 (the “Dissolution Date”). The Dissolution Date may be extended once for up to six months and the Fund may conduct an eligible tender offer. Upon dissolution or the eligible tender offer, each common shareholder would be eligible to be paid its pro rata portion of the Fund’s net assets.

There is no assurance that the Fund will meet its investment objectives. You could lose some or all of your investment.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. The Fund has filed a registration statement including a preliminary prospectus and a statement of additional information, which has been declared effective, and will file the prospectus with the Securities and Exchange Commission for the offering of the Fund’s common shares to which this communication relates. Before investing, an investor should carefully read the Fund's prospectus, when available, which includes a discussion of the Fund's investment strategy, risks, charges and expenses.

Data and commentary provided in this press release are for informational purposes only.

PGIM Investments LLC, the Investment Manager of the Fund, and its affiliates do not engage in selling shares of the Fund. The Fund is subadvised by PGIM Fixed Income, a business unit of PGIM, Inc. and an affiliate of the investment manager. Prudential Investment Management Services LLC (PIMS), member FINRA. PIMS and PGIM Fixed Income are Prudential Financial companies. PGIM, Inc. is a registered investment adviser and will be responsible for the day-to-day portfolio management of the Fund, subject to the supervision of the Fund’s Board and PGIM Investments. PGIM Limited is a subadvisor. PGIM Limited is an indirect wholly-owned subsidiary of PGIM, Inc. Shares of a closed-end fund often trade at a discount to their net asset value.

This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact a financial professional. Please consult with a qualified investment professional if you wish to obtain investment advice.

Investment products are not insured by the FDIC or any federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

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