EX-99.(A)(5)(I) 2 d66182_ex99a5i.htm TEXT OF PRESS RELEASE

Exhibit (a)(5)(i)

PRESS RELEASE

  For Immediate Release
08 December 2005

Shareholder Inquiries:
800.346.2898

Media Inquiries
Laura Fay 617.210.3867
LFay@EvergreenInvestments.com 		Dan Flaherty 617.210.3887
dflaherty@evergreeninvestments.com


 

EVERGREEN FUND BOARD APPROVES EVERGREEN UTILITIES AND HIGH INCOME FUND TENDER OFFER

 

BOSTON – Evergreen Utilities and High Income Fund (AMEX:ERH), a closed-end equity and bond fund, announced that the Board of Trustees approved a tender offer to repurchase up to 5% of the fund’s outstanding shares at net asset value. The repurchase offer period will commence on or about December 19, 2005, when the notification of the repurchase offer is sent to shareholders. The repurchase deadline is expected to be 5:00 p.m. on January 20, 2006. Shareholders who participate in the tender offer will receive the net asset value of the fund shares as calculated on January 23, 2006, or, if the offer is extended, on the business day following the date to which the offer is extended. Shareholders participating in the tender offer are required to tender at least 20 percent of their shares. The complete terms of the offer will be contained in the Offer to Purchase and related Letter of Transmittal.

 

As described in the fund's prospectus dated April 27, 2004, under the Enhanced Liquidity Plan, the Board is required to consider repurchasing shares in the event that the fund's common shares trade at a discount to net asset value of greater than 5 percent for at least 15 out of 20 trading days during a predetermined measurement period. The latest measurement period commenced on October 31, 2005. As of the close of business on November 18, 2005, the fund had traded at a discount of greater than 5 percent for 15 days, initiating the recommendation that the Board consider a tender offer. If more than 5% of the fund’s outstanding shares are tendered, the fund will purchase a pro rata portion of the shares tendered by each shareholder.

 

There can be no assurance that any action proposed or approved by the Board will reduce or eliminate the discount at which the fund’s shares may be trading. This announcement is not an offer to purchase or the solicitation of an offer to sell shares of the fund. The tender offer will be made only by the Offer to Purchase and the related Letter of Transmittal, which is expected to be mailed to shareholders on or about December 19, 2005. Shareholders should read these documents carefully when they are available because they will contain important information. These documents will also be available to investors for free at the website of the Securities and Exchange Commission (www.sec.gov). The Offer to Purchase and Letter of Transmittal will also be able to be obtained at no charge by contacting Computershare Shareholder Services, Inc. (formerly EquiServe Trust Company, N.A.), the fund's information agent, as provided in the

 

 




 

Offer to Purchase. Neither the offer to purchase shares will be made to, nor will tenders pursuant to the Offer to Purchase be accepted from or on behalf of, holders of shares in any jurisdiction in which making or accepting the offer to purchase would violate that jurisdiction’s laws.

 

Investments in the fund involve risk. Additional risks are associated with investing in utility and below investment grade securities, such as risk that concentrating investments in one single sector could increase volatility of your investment and risk that below investment grade investment is more prone to default or decline in market value.

 

About Evergreen Investments

Evergreen Investments is the brand name under which Wachovia Corporation (NYSE:WB) conducts its investment management business and is a leading asset management firm serving more than four million individual and institutional investors through a broad range of investment products. Led by 400 investment professionals, Evergreen Investments strives to meet client investment objectives through disciplined, team-based asset management. Evergreen Investments manages more than $252 billion in assets (as of September 30, 2005). For more information on Evergreen, please visit www.evergreeninvestments.com.

 

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