Deutsche High Income Trust (NYSE:KHI) (the “Fund”) announced today that
the Board of Trustees has approved the termination of the Fund, pursuant
to which KHI will make a liquidating distribution to shareholders no
later than November 30, 2016. The Fund also announced that a special
meeting of shareholders will be held on June 30, 2016 at the offices of
Deutsche Investment Management Americas Inc. (“DIMA”) at 345 Park
Avenue, New York, NY 10154. As previously disclosed, at the special
meeting, shareholders will consider a proposal to convert the Fund from
a closed-end investment company to an open-end investment company. The
proposal to convert the Fund from a closed-end investment company to an
open-end investment company is being made to satisfy a requirement of
the Fund’s Agreement and Declaration of Trust. After careful
consideration of a range of factors, and in light of the Board’s
approval of the Fund’s termination and liquidating distribution to
shareholders no later than November 30, 2016, the Board recommends that
shareholders vote against the proposal to convert the Fund to an
open-end investment. A discussion of factors considered by the Board in
developing this recommendation will be set forth in the proxy statement
to be provided to Fund shareholders. Holders of record of common shares
of the Fund at the close of business on April 26, 2016 will be entitled
to vote at the meeting and any adjournments thereof.
DIMA proposed to the Fund’s Board the termination of the Fund and
liquidating distribution pursuant to the terms of a Standstill Agreement
that DIMA and the Fund entered into with Saba Capital Management L.P.
(“Saba”), a large shareholder in the Fund, and certain parties
associated with Saba. Under the terms of the Standstill Agreement, Saba
has agreed, among other things, to vote in accordance with the Board's
recommendation on various matters affecting KHI, including any proposal
to convert KHI to an open-end investment company. The Fund has been
advised that Saba will file a copy of the Standstill Agreement with the
Securities and Exchange Commission as an exhibit to its Schedule 13D.
Important Information
Deutsche High Income Trust seeks to provide the highest current
income obtainable, consistent with reasonable risk, with capital gains
secondary. Bond investments are subject to interest-rate and
credit risks. When interest rates rise, bond prices generally fall.
Credit risk refers to the ability of an issuer to make timely payments
of principal and interest. Investments in lower-quality (“junk bonds”)
and non-rated securities present greater risk of loss than investments
in higher-quality securities. Investing in derivatives entails special
risks relating to liquidity, leverage and credit that may reduce returns
and/or increase volatility. Leverage results in additional risks and can
magnify the effect of any gains or losses. Investing in foreign
securities, particularly those of emerging markets, presents certain
risks, such as currency fluctuations, political and economic changes,
and market risks.
Closed-end funds, unlike open-end funds, are not continuously
offered. There is a one-time public offering and once issued, shares of
closed-end funds are bought and sold in the open market through a stock
exchange. Shares of closed-end funds frequently trade at a discount to
the net asset value. The price of a fund’s shares is determined by a
number of factors, several of which are beyond the control of the fund.
Therefore, a fund cannot predict whether its shares will trade at, below
or above net asset value.
Past performance is no guarantee of future results.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these securities in
any state or jurisdiction in which such offer or solicitation or sale
would be unlawful prior to registration or qualification under the laws
of such state or jurisdiction.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT
A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
Deutsche Asset Management represents the asset management activities
conducted by Deutsche Bank AG or any of its subsidiaries. Clients will
be provided Deutsche Asset Management products or services by one or
more legal entities that will be identified to clients pursuant to the
contracts, agreements, offering materials or other documentation
relevant to such products or services. (R-45685-1 2/16)
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