Page 21 of 22 – SEC Filing
Following
the Initial Managed Distribution Period, the Board of each Fund will review the current distribution amount in light of the current
distribution rate of peer funds selected by the Board and will seek to pay a monthly distribution in an amount not less than the
average monthly distribution rate of the peer group for an additional two year period.
Robert
Butler, Chairman of the Boards, said “We are very pleased to be implementing a discount management program that will
provide our shareholders with liquidity but more importantly, with the 4-year commitment to
a managed distribution program, we believe we are positioning the Funds for the future as attractive vehicles for investors who
seek regular and predictable distributions.”
Withdrawal
of Saba Candidates and Proposals
Saba
Capital Management, L.P. (collectively with certain of its affiliates, “Saba”) announced that, in connection with the
Funds and their respective Boards agreeing to take the actions set forth in the respective Standstill Agreements discussed below,
it has withdrawn its slate of nominees to serve as trustees of each Fund. It has also withdrawn the proposals for GLV and GLO seeking
a shareholder vote regarding the classified board structure of the Funds.
Standstill
Agreements
The
commencement of the tender offers and managed distribution program is pursuant to separate agreements (the “Standstill Agreements”)
between each Fund and Saba. Subject to the terms of the Standstill Agreements and in consideration for the tender offers, managed
distribution plan and other factors set forth in the Standstill Agreements, Saba has agreed, subject to the terms of the Standstill
Agreements, to (1) tender all Shares of the Funds owned by it in the tender offers, (2) be bound by certain “standstill”
covenants through July 10, 2021 and (3) vote its remaining Shares on all proposals submitted to shareholders in accordance with
the recommendation of management through July 10, 2021. Additionally, each Fund has agreed to a four year managed distribution
program as described above. The Funds have been advised that Saba will file a copy of each Fund’s Standstill Agreement with
the U.S. Securities and Exchange Commission as an exhibit to its Schedule 13D.
*****
The Funds have not commenced
the tender offers described in this release or declared any dividend or distribution. This
announcement is not
a recommendation, an offer
to purchase or
a solicitation of an offer
to sell shares of any Fund and the above
statements are not intended to constitute an offer to participate in any tender offer. Information about each tender offer, including
its commencement, will be provided by future public announcements. Shareholders will be notified in accordance with the requirements
of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, either by publication or
mailing or both. Each tender offer will be made only by an Offer to Purchase, a related Letter of Transmittal and other documents,
to be filed with the SEC. Shareholders of the Funds should read the Offer to Purchase and tender offer statement and related exhibits
when those documents are filed and become available, as they will contain important information about the applicable tender offer.
These and other filed documents will be available to investors for free both at the website of the SEC and from the Funds.
