Filed By First Trust Strategic High Income Fund II
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: First Trust Strategic High Income Fund
Commission File No.: 811-21756
Subject Company: First Trust Strategic High Income Fund III
Commission File No.: 811-21994
PRESS RELEASE SOURCE: First Trust Advisors L.P.
FIRST TRUST STRATEGIC HIGH INCOME FUNDS COMPLETE REORGANIZATIONS;
REVERSE SHARE SPLIT FOR SURVIVING FUND
WHEATON, IL - (BUSINESS WIRE) - October 3, 2011 - First Trust Advisors L.P.
("FTA") today announced that the reorganizations of First Trust Strategic High
Income Fund (NYSE: FHI) and First Trust Strategic High Income Fund III (NYSE:
FHO) with and into First Trust Strategic High Income Fund II (NYSE: FHY) are
effective as of the opening of business of the New York Stock Exchange on
October 3, 2011. In the applicable reorganization, FHY acquired substantially
all of the assets and liabilities of FHI and FHO in tax-free transactions in
exchange for an equal aggregate value of newly-issued common shares of FHY.
Common shareholders of FHI and FHO received common shares of FHY with a net
asset value equal to the aggregate net asset value of their respective common
shares as determined at the close of business on September 30, 2011, which
includes the costs of the applicable reorganization (cash was distributed for
any fractional common shares).
Relevant details pertaining to the reorganizations are as follows:
Conversion
Fund NAV/Share ($) Ratio
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First Trust Strategic High Income Fund (FHI) $3.7490 0.745047
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First Trust Strategic High Income Fund II (FHY) $5.0319 N/A
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First Trust Strategic High Income Fund III (FHO) $4.3795 0.870347
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Prior to the open of business on October 3, 2011, FHY also completed a
previously announced 1-for-3 reverse share split, which resulted in every three
outstanding FHY shares after the reorganizations being converted into one share.
FHY's shares continue to trade on a reverse split-adjusted basis under the same
ticker symbol, FHY, with a new CUSIP number, 337353304.
FHY is a diversified, closed-end management investment company that seeks
to provide a high level of current income. As a secondary objective, FHY seeks
to provide capital growth. FHY pursues these investment objectives by investing
up to 100% of its managed assets in a diversified portfolio of high income
producing securities that the investment sub-advisor believes offer attractive
yield and capital appreciation potential.
FTA, the investment advisor for FHY, along with 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 competitive municipal underwritings, with collective assets under management
or supervision of approximately $46 billion as of August 31, 2011 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual funds and
separate managed accounts and exchange traded funds.
Brookfield Investment Management Inc., the investment sub-advisor for FHY,
is a global investment advisor focused on specialized equity and fixed income
securities investments. The firm is a subsidiary of Brookfield Asset Management
Inc., a leading global asset manager with over $150 billion in assets under
management as of June 30, 2011 and over 100 years of experience in the property,
power and infrastructure industries. Brookfield Investment Management Inc. is an
SEC registered investment advisor, and with its affiliates had approximately $24
billion in assets under management as of June 30, 2011. Headquartered in New
York, the firm maintains offices and investment teams in Chicago, Boston,
London, Hong Kong, Sydney and Toronto.
FORWARD-LOOKING STATEMENTS
Certain statements made in this news release that are not historical facts
are referred to as "forward-looking statements" under the U.S. federal
securities laws. Actual future results or occurrences may differ significantly
from those anticipated in any forward-looking statements due to numerous
factors. Generally, the words "believe," "expect," "intend," "estimate,"
"anticipate," "project," "will" and similar expressions identify forward-looking
statements, which generally are not historical in nature. Forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ from the historical experience of FTA and the
closed-end funds managed by FTA and its present expectations or projections. You
should not place undue reliance on forward-looking statements, which speak only
as of the date they are made. FTA and the closed-end funds managed by FTA
undertake no responsibility to update publicly or revise any forward-looking
statements.
The Annual and Semi-Annual Reports and other regulatory filings of FHY
with the SEC are accessible on the SEC's web site at www.sec.gov.
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CONTACT: Jeff Margolin - (630) 915-6784
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CONTACT: Jim Dykas - (630) 517-7665
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SOURCE: First Trust Advisors L.P.