WHEATON, Illinois–(BUSINESS WIRE)–First Trust Senior Floating Rate 2022 Target Term Fund (NYSE: FIV) (the “Fund”) completed its closing and liquidation after the close of business on December 15, 2021. The closing and liquidation was effected in accordance with Fund policy. investment objectives and governing documents, in accordance with the Fund’s previously announced liquidation plans.
The Fund launched its initial public offering on December 21, 2016 with the investment objectives of seeking a high level of current income and to earn $9.85 per common share of beneficial interest of the Fund (the “Initial NAV ”) to holders of such shares on or about February 1, 2022. The investment objective of return to the initial net asset value was not a guarantee.
As previously announced, in part due to the impact of the COVID-19 pandemic on market conditions and the U.S. economy, the Fund did not return the initial net asset value at its close. The Fund returns to shareholders a net asset value (“NAV”) of $9.753232 per beneficial interest common share as a liquidation distribution. Over its five-year term, the Fund paid 57 monthly distributions and 0 long-term capital gains distributions totaling $1.6732 per Beneficial Equity Common Share, which equates to an average distribution rate of 3.613% on the net asset value and 3.62% on the market price as of December 14, 2021. The annualized total return of the net asset value for the shareholders who invested during the IPO was 3.52% and the return total market price was 3.16%.
Shareholders may realize a gain or loss for US tax purposes on the liquidation of the Fund. Investors are advised to consult a professional tax adviser regarding their specific tax situation.
First Trust Advisors LP (“FTA”) is a federally registered investment adviser and acted as the investment adviser to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a FINRA-registered dealer, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $216 billion as of November 30, 2021 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and accounts managed separately. FTA is the supervisor of the First Trust Unitary Investment Trusts, while FTP is the sponsor. FTP is also a distributor of UCITS units and UCITS creation units. FTA and FTP are based in Wheaton, Illinois. For more information, visit https://www.ftportfolios.com.