<SEC-DOCUMENT>0001445546-17-001292.txt : 20170308
<SEC-HEADER>0001445546-17-001292.hdr.sgml : 20170308
<ACCEPTANCE-DATETIME>20170308165309
ACCESSION NUMBER: 0001445546-17-001292
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20170308
ITEM INFORMATION: Regulation FD Disclosure
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20170308
DATE AS OF CHANGE: 20170308
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: FIRST TRUST SENIOR FLOATING RATE INCOME FUND II
CENTRAL INDEX KEY: 0001282850
IRS NUMBER: 113716541
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 811-21539
FILM NUMBER: 17675693
BUSINESS ADDRESS:
STREET 1: 120 EAST LIBERTY DRIVE
STREET 2: SUITE 400
CITY: WHEATON
STATE: IL
ZIP: 60187
BUSINESS PHONE: 630-765-8000
MAIL ADDRESS:
STREET 1: 120 EAST LIBERTY DRIVE
STREET 2: SUITE 400
CITY: WHEATON
STATE: IL
ZIP: 60187
FORMER COMPANY:
FORMER CONFORMED NAME: FIRST TRUST FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
DATE OF NAME CHANGE: 20040305
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>fct_8k.txt
<DESCRIPTION>CURRENT REPORT
<TEXT>
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) March 8, 2017
FIRST TRUST SENIOR FLOATING RATE INCOME FUND II
(Exact Name of Registrant as Specified in its Charter)
Massachusetts 811-21539 11-3716541
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
120 East Liberty Drive, Suite 400
Wheaton, Illinois 60187
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (630) 765-8000
___________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
================================================================================
<PAGE>
Item 7.01 Regulation FD Disclosure.
First Trust Senior Floating Rate Income Fund II (the "Fund") is filing herewith
a press release issued on March 8, 2017, as Exhibit 99.1. The press release was
issued by First Trust Advisors L.P. to report that its Leveraged Finance
Investment Team, portfolio manager of the Fund, will release an update on the
market and the Fund on March 10, 2017. Details regarding access to the update
are contained in the press release included herein.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Press release of First Trust Advisors L.P. dated
March 8, 2017.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 8, 2017 FIRST TRUST SENIOR FLOATING RATE INCOME FUND II
By: /s/ W. Scott Jardine
----------------------------------
Name: W. Scott Jardine
Title: Secretary
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release of First Trust Advisors L.P. dated
March 8, 2017.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>press_release.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
PRESS RELEASE SOURCE: First Trust Advisors L.P.
FIRST TRUST ADVISORS L.P. ANNOUNCES PORTFOLIO MANAGER UPDATE FOR FIRST TRUST
SENIOR FLOATING RATE INCOME FUND II AND FIRST TRUST SENIOR FLOATING RATE 2022
TARGET TERM FUND
WHEATON, IL -- (BUSINESS WIRE) -- March 8, 2017 -- First Trust Advisors L.P.
("FTA") announced today that its Leveraged Finance Investment Team, portfolio
manager for the First Trust Senior Floating Rate Income Fund II (NYSE: FCT) and
First Trust Senior Floating Rate 2022 Target Term Fund (NYSE: FIV) (each a
"Fund" or collectively, the "Funds"), will release an update on the market and
the Funds for financial advisors and investors. The update will be available
FRIDAY, MARCH 10, 2017, AT 5:00 P.M. EASTERN TIME UNTIL 11:59 P.M. EASTERN TIME
ON FRIDAY, APRIL 7, 2017. To listen to the update, follow these instructions:
-- Dial: (888) 203-1112; International (719) 457-0820; and Passcode #
6750824. The update will be available from Friday, March 10, 2017, at
5:00 P.M. Eastern Time until 11:59 P.M. Eastern Time on April 7, 2017.
FCT is a diversified, closed-end management investment company whose primary
investment objective is to seek a high level of current income. As a secondary
objective, the Fund attempts to preserve capital. The Fund pursues its
objectives by investing in a professionally managed portfolio of senior secured
floating rate corporate loans ("Senior Loans"). The Fund invests in below
investment grade Senior Loans. This involves the risk that borrowers may default
on obligations, or that lenders may have difficulty liquidating the collateral
securing the loans, or difficulty enforcing their rights under the terms of the
Senior Loans. Senior loans are subject to credit risk and the potential for
non-payment of scheduled principal or interest payments, which may result in a
reduction of the Fund's net asset value ("NAV"). The Fund utilizes leverage. The
use of leverage for investment purposes increases both investment opportunity
and investment risk. In the event of a default on one or more loans or other
interest-bearing instruments held by the Fund, the use of leverage can magnify
the effect of any losses.
FIV is a diversified, closed-end management investment company. The Fund's
investment objectives are to seek a high level of current income and to return
$9.85 per common share of beneficial interest ("Common Share") of the Fund (the
original net asset value ("Original NAV") per Common Share before deducting
offering costs of $0.02 per Common Share) to the holders of Common Shares on or
about February 1, 2022 (the "Termination Date"). The Fund will attempt to strike
a balance between the two objectives, seeking to provide as high a level of
current income as is consistent with the Fund's overall credit performance, on
the one hand, and its objective of returning the Original NAV on or about the
Termination Date on the other. However, as the Fund approaches the Termination
Date, its monthly distributions are likely to decline, and there can be no
assurance that the Fund will achieve either of its investment objectives or that
the Fund's investment strategies will be successful. Under normal market
conditions, the Fund will seek to achieve its investment objectives by investing
at least 80% of its Managed Assets in senior, secured floating-rate loans
("Senior Loans") of any maturity. Senior Loans are made to U.S. and non-U.S.
corporations, partnerships and other business entities which operate in various
industries and geographical regions. Senior Loans are typically rated below
investment grade. As it nears the Termination Date, the Fund may invest in
higher credit quality instruments with maturities extending beyond the
Termination Date to seek to improve the liquidity of its portfolio and reduce
investment risk. Investing in higher credit quality instruments may reduce the
amount available for distribution to Common Shareholders.
First Trust Advisors L.P., the Fund's investment advisor, along with its
affiliate, First Trust Portfolios L.P., are privately-held companies which
provide a variety of investment services, including asset management and
financial advisory services, with collective assets under management or
supervision of approximately $104 billion as of February 28, 2017 through unit
investment trusts, exchange-traded funds, closed-end funds, mutual funds and
separate managed accounts.
Past performance is no assurance of future results. Investment return and
principal value of an investment in each Fund will fluctuate. Shares, when sold,
may be worth more or less than their original cost. Shares of closed-end funds
often trade at a discount to their net asset value.
Principal Risk Factors: The Funds are subject to various risks including: the
Funds will typically invest in senior loans rated below investment grade, which
are commonly referred to as "junk" or "high yield" securities and considered
speculative because of the credit risk of their issuers. Such issuers are more
likely than investment grade issuers to default on their payments of interest
and principal owed to a Fund, and such defaults could reduce a Fund's NAV and
income distributions. An economic downturn would generally lead to a higher
non-payment rate, and a senior loan may lose significant market value before a
default occurs. Moreover, any specific collateral used to secure a senior loan
may decline in value or become illiquid, which would adversely affect the senior
loan's value.
Senior Loans are structured as floating rate instruments in which the interest
rate payable on the obligation fluctuates with interest rate changes. As a
result, the yield on Senior Loans will generally decline in a falling interest
rate environment, causing the Fund to experience a reduction in the income it
receives from a Senior Loan. In addition, the market value of Senior Loans may
fall in a declining interest rate environment and may also fall in a rising
interest rate environment if there is a lag between the rise in interest rates
and the reset. Many Senior Loans have a minimum base rate, or floor (typically,
a "LIBOR floor"), which will be used if the actual base rate is below the
minimum base rate. To the extent a Fund invests in such Senior Loans, the Fund
may not benefit from higher coupon payments during periods of increasing
interest rates as it otherwise would from investments in Senior Loans without
any floors until rates rise to levels above the LIBOR floors. As a result, a
Fund may lose some of the benefits of incurring leverage. Specifically, if a
Fund's Borrowings have floating dividend or interest rates, its costs of
leverage will increase as rates increase. In this situation, a Fund will
experience increased financing costs without the benefit of receiving higher
income. This in turn may result in the potential for a decrease in the level of
income available for dividends or distributions to be made by a Fund.
FIV's limited term may cause it to invest in lower-yielding securities or hold
the proceeds of securities sold near the end of its term in cash or cash
equivalents, which may adversely affect the performance of the Fund or the
Fund's ability to maintain its dividend.
A second lien loan may have a claim on the same collateral pool as the first
lien or it may be secured by a separate set of assets. Second lien loans are
typically secured by a second priority security interest or lien on specified
collateral securing the Borrower's obligation under the interest. Because second
lien loans are second to first lien loans, they present a greater degree of
investment risk. Specifically, these loans are subject to the additional risk
that the cash flow of the Borrower and property securing the loan may be
insufficient to meet scheduled payments after giving effect to those loans with
a higher priority. In addition, loans that have a lower than first lien priority
on collateral of the Borrower generally have greater price volatility than those
loans with a higher priority and may be less liquid. However, second lien loans
often pay interest at higher rates than first lien loans reflecting such
additional risks.
Because the assets of FIV will be liquidated in connection with its termination,
the Fund may be required to sell portfolio securities when it otherwise would
not, including at times when market conditions are not favorable, or at a time
when a particular security is in default or bankruptcy, or otherwise in severe
distress, which may cause the Fund to lose money. Although the Fund has an
investment objective of returning Original NAV to Common Shareholders on or
about the Termination Date, the Fund may not be successful in achieving this
objective. The return of Original NAV is not an express or implied guarantee
obligation of the Fund. There can be no assurance that the Fund will be able to
return Original NAV to Common Shareholders, and such return is not backed or
otherwise guaranteed by the Advisor or any other entity.
The risks of investing in each Fund are spelled out in the prospectus,
shareholder reports, and other regulatory filings.
Each Fund's daily New York Stock Exchange closing price and daily net asset
value, as well as other information are available at www.ftportfolios.com or by
calling 1-800-988-5891.
CONTACT: JEFF MARGOLIN - (630) 915-6784
----------------------------------
Source: First Trust Advisors L.P.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>