The abrdn Income Credit Strategies Fund (ACP) has announced a significant strategic move, filing with the U.S. Securities and Exchange Commission (SEC) for an “at-the-market” (ATM) equity offering program. This initiative, unveiled on August 1, 2025, aims to raise substantial capital, signaling the Fund’s proactive approach to enhancing its financial flexibility and investment capacity in the dynamic financial markets.
Under the provisions of this ATM Program, the closed-end fund may periodically offer and sell its common shares, with an aggregate offering price reaching up to $75 million. This mechanism provides the Fund with a flexible tool for capital generation, allowing for opportunistic sales based on market conditions and strategic needs, a common practice in corporate finance to optimize funding.
A critical condition stipulated in the offering ensures that the Fund cannot sell any common shares below their current net asset value (NAV), exclusive of any distributing commission or discount. This safeguard is designed to protect existing shareholders and maintain the intrinsic value of the investment, although there’s no guarantee regarding the volume or occurrence of sales.
The anticipated proceeds from this significant equity offering are slated for investment purposes, reinforcing the Fund’s core objective of seeking a high level of current income alongside a secondary objective of capital appreciation. Such strategic funding allows for the potential expansion of the Fund’s portfolio and reinforces its ability to pursue promising opportunities.
Prospective investors are strongly advised to thoroughly review the Fund’s prospectus and prospectus supplement before making any investment decisions. These essential documents detail the methods and terms of the offering, including any agents, underwriters, or dealers involved, and outline the various risks inherent in an investment in the Fund, emphasizing due diligence.
It is crucial for investors to understand that closed-end funds, like ACP, trade on their market value rather than solely on their NAV, often leading to shares trading at a premium or discount. Past performance does not guarantee future results, and the Fund’s value will naturally fluctuate with the underlying securities, necessitating careful consideration of market dynamics.
The Fund is a diversified, closed-end management investment company, expertly advised by abrdn Investments Limited and sub-advised by abrdn Inc. Its common shares are publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol “ACP”, providing accessibility for investors seeking exposure to its unique income and credit strategies.
The information provided is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any securities. Any offering of securities will strictly adhere to the requirements of Section 10 of the Securities Act of 1933, as amended, ensuring regulatory compliance and investor protection in all transactions related to this equity offering.
