Prudential Global Short Duration High Yield Fund, Inc. Raises $851 Million
NEWARK, N.J. -- December 21, 2012
Prudential Investments announced the initial public offering of the Prudential
Global Short Duration High Yield Fund, Inc. (the Fund). The Fund raised $740
million in its common share offering ($851 million assuming full exercise of
the underwriters’ overallotment option, which may not occur) and its shares
began trading today on the New York Stock Exchange under the symbol “GHY.”
The Fund is a newly organized closed-end fund that seeks to provide investors
with a high level of current income. It invests in a global portfolio
consisting primarily of higher-rated high yield bonds.^1 It seeks to maintain
a weighted average portfolio duration of three years or less and a weighted
average maturity of five years or less. There is no guarantee the Fund’s
objective will be achieved.
“This new closed-end fund should help investors address the challenge of
finding yield in today’s low interest rate environment by offering access not
only to the U.S. short duration high yield market, but also to the rapidly
growing non-U.S. market,” said Stuart Parker, president of Prudential
Investments. “Many non-U.S. bonds are currently providing higher yields than
similarly-rated U.S. bonds.”
The Fund’s portfolio managers are part of Prudential Fixed Income, a
credit-research-driven fixed income manager with a sharp focus on managing
risk. Prudential Fixed Income has been managing fixed income portfolios since
1875 and is among the largest fixed income managers in the United States, with
about $356 billion in assets under management as of September 30, 2012.
Day-to-day Fund management is provided by Prudential Fixed Income’s Leveraged
Finance Team, whose 12-member portfolio management team averages 20 years of
experience. The team is supported by 28 experienced high yield and bank loan
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets
Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC are acting as
lead underwriters of the offering.
Prudential Investments, the mutual fund and wealth management business of
Prudential Financial, Inc. (NYSE: PRU), oversees Prudential Mutual Funds,
which focuses on traditional mutual funds, separately managed accounts, and
Investment Only Defined Contribution businesses. Prudential Investments also
maintains two other business units, Wealth Management Solutions and Strategic
Investment Research Group.
Prudential Financial, Inc., a financial services leader with approximately $1
trillion of assets under management as of September 30, 2012, has operations
in the United States, Asia, Europe, and Latin America. Prudential’s diverse
and talented employees are committed to helping individual and institutional
customers grow and protect their wealth through a variety of products and
services, including life insurance, annuities, retirement-related services,
mutual funds and investment management. In the United States, Prudential’s
iconic Rock symbol has stood for strength, stability, expertise and innovation
for more than a century. For more information, please visit
The Fund is a newly organized registered closed-end management company with no
operating history. Shares of closed-end investment companies, such as the
Fund, usually trade on a national stock exchange, and these shares frequently
trade at a discount to their net asset value, which may increase investors’
risk of loss.
An investment in the Fund’s shares of common stock may be speculative in that
involves a high degree of risk and should not constitute a complete investment
program. Each closed-end fund will have its own unique investment strategy,
risks, charges and expenses that need to be considered before investing. The
prospectus, which contains this and other information about the Fund, should
be read carefully before investing.
Investing in this diversified Fund involves certain risks and the Fund may not
achieve its intended results for a variety of reasons, including, among
others, the possibility that the Fund may not successfully implement its
investment strategy, because of market, economic, regulatory, geopolitical and
other conditions. U.S. and foreign governments have taken a number of
unprecedented actions designed to support certain financial institutions and
segments of the financial markets that have experienced extreme volatility,
and in some cases a lack of liquidity. The impact of these measures, as well
as any additional future regulatory actions, is not yet known and cannot be
predicted. Legislation or regulation may also change the way in which the Fund
is regulated and could limit or preclude the Fund’s ability to achieve its
investment objective. Because the market price of the Fund’s common stock will
fluctuate, there is a risk that investors will lose money. Investments will
decline in value if, among other things, the market price of the Fund’s common
stock decreases. As with any security, a complete loss of an investment is
possible. The Fund may seek to enhance the level of its current distributions
to holders of common stock through the use of leverage, which may magnify
losses and increase a portfolio’s expenses. Fixed income investments are
subject to interest rate risk, where their value will decline as interest
SIRG is a unit of Prudential Investments LLC, and a research unit of
Prudential Financial. SIRG provides research, analysis and due diligence on
investment management firms and the vehicles and strategies they offer. Wealth
Management Solutions is a division of Prudential Investments LLC, Newark, NJ,
a Prudential Financial company.
Prudential Fixed Income is a business unit of Prudential Investment Management
LLC, a registered investment advisor and a Prudential Financial company.
Prudential Investments, Prudential, the Prudential logo,and the Rock symbol
are service marks of Prudential Financial, Inc. and its related entities,
registered in many jurisdictions worldwide.
This news release is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where the offer or
sale is not permitted. Investors should contact their financial professional
to obtain a copy of the prospectus and read it carefully before investing.
^1 Higher-rated high yield bonds are below investment grade, commonly referred
to as “junk bonds,” and are considered speculative. Rated Ba, B by Moody’s
Investors Service, Inc.; BB, B by Standard & Poor’s Ratings Services or Fitch,
Inc.; or comparably rated by another nationally recognized statistical rating
Control Number: 0236793-00001-00
Prudential Financial, Inc.
Darrell Oliver, 973-802-9627
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