First Trust Senior Floating Rate Income Fund II Reports Monthly Common Share Distribution of $ 0.0896 per Share for August


WHEATON, Illinois – (COMMERCIAL THREAD) – First Trust Senior Floating Rate Income Fund II (the “Fund”) (NYSE: FCT) declared the regular monthly distribution of common shares of the Fund in the amount of $ 0.0896 per share payable on August 16, 2021 to shareholders of record as of August 3, 2021. The ex-dividend date is expected to be August 2, 2021. Information on the Fund’s monthly distributions is provided below.

First Trust Senior Floating Rate Income Fund II (FCT):

Breakdown per share:

$ 0.0896

Distribution rate based on the July 19, 2021 net asset value of $ 12.53:


Payout rate based on the July 19, 2021 closing market price of $ 12.35:


This distribution will consist of the net investment income earned by the Fund and a return of capital and may also consist of net capital gains realized in the short term. The final determination of the source and tax status of all 2021 distributions will be made after the end of 2021 and will be provided on Form 1099-DIV.

The Fund is a diversified and private management investment company. The primary investment objective of the Fund is to seek a high level of current income. As a secondary objective, the Fund attempts to preserve capital. The Fund pursues these investment objectives by investing primarily in senior secured variable rate corporate loans. Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in lower quality debt securities.

First Trust Advisors LP (“FTA”) is a federally registered investment advisor and acts as the investment advisor to the Fund. FTA and its affiliate First Trust Portfolios LP (“FTP”), a brokerage firm registered with FINRA, are private companies that provide a variety of investment services. FTA has collective assets under management or supervision of approximately $ 205 billion as of June 30, 2021 through mutual funds, exchange-traded funds, closed-end funds, mutual funds and managed accounts distinct. FTA is the supervisor of the First Trust mutual funds, while FTP is the sponsor. FTP is also a distributor of UCITS units and exchange-traded fund creation units. FTA and FTP are based in Wheaton, Illinois.

Past performance is no guarantee of future results. Investment returns and the market value of an investment in the Fund fluctuate. Stocks, when sold, may be worth more or less than their original cost. There can be no assurance that the Fund’s investment objectives will be achieved. The Fund may not be suitable for all investors.

Main risk factors: The securities held by a fund, as well as the shares of a fund itself, are subject to market fluctuations caused by factors such as general economic conditions, political events, regulatory or market developments. market, changes in interest rates and perceived trends in securities prices. The shares of a fund could lose value or underperform other investments because of the risk of loss associated with these market movements. In addition, local, regional or global events such as war, acts of terrorism, the spread of infectious diseases or other public health issues, recessions or other events could have a significant negative impact on a person. funds and its investments. Such events can affect certain geographic regions, countries, sectors and industries more significantly than others. The outbreak of respiratory disease known as COVID-19 in December 2019 caused significant volatility and declines in global financial markets, causing losses for investors. While vaccine development has slowed the spread of the virus and allowed the resumption of “reasonably” normal business activity in the United States, many countries continue to impose lockdowns in an attempt to slow the spread. In addition, there is no guarantee that the vaccines will be effective against emerging variants of the disease.

The Fund will generally invest in senior loans rated below investment grade, which are commonly referred to as “undesirable” or “high yield” securities and considered speculative due to the credit risk of their issuers. These issuers are more likely than investment grade issuers to default on their interest and principal payments owed to the Fund, and such defaults could reduce the net asset value and income distributions of the Fund. An economic downturn would generally result in a higher default rate, and a senior loan can lose significant market value before a default occurs. Additionally, any specific collateral used to secure a senior loan may lose value or become illiquid, which would negatively affect the value of the senior loan.

The senior loan market has seen an increase in loans with weaker lender protections, which may impact salvage values ​​and / or trading levels going forward. The absence of financial sustaining covenants in a loan agreement usually means that the lender may not be able to declare a default if financial performance deteriorates. This may hamper the Fund’s ability to reassess the credit risk associated with a particular borrower and reduce the Fund’s ability to restructure a problematic loan and mitigate potential losses. As a result, the Fund’s exposure to losses on senior loan investments may be increased, particularly during a slowdown in the credit cycle or changes in market or economic conditions.

If a borrower fails to pay expected interest or principal payments on a senior loan held by the Fund, the Fund will experience a reduction in its income and a decline in the value of the senior loan, which is likely to reduce the losses. dividends and will result in a decrease in the net asset value of the common shares of the Fund. If the Fund acquires a senior loan from another lender, for example by acquiring an equity interest, the Fund may also be subject to credit risk with respect to that lender. Although senior loans may be secured by a specific guarantee, the value of the collateral may not equal the Fund’s investment when the senior loan is acquired or may fall below the principal amount of the loan. first after the investment of the Fund. In addition, to the extent that the collateral consists of shares of the borrower or of its subsidiaries or affiliates, the Fund bears the risk that the shares may lose value, be relatively illiquid and / or lose all or substantially all of them. – their full value, causing the senior loan to be under-secured. Therefore, liquidation of the collateral underlying a senior loan may not meet the obligation of the issuer to the Fund for default on anticipated interest or principal, and the collateral may not. be easily liquidated.

To the extent that a fund invests in floating or variable rate bonds which use the London Interbank Offered Rate (“LIBOR”) as the benchmark interest rate, it is subject to LIBOR risk. The UK Financial Conduct Authority, which regulates LIBOR, will stop offering LIBOR as a benchmark rate over a phase-out period that will begin immediately after December 31, 2021. LIBOR unavailability or replacement may affect the value. , liquidity or return on certain investments of the fund and may incur costs associated with closing positions and entering into new transactions. The potential effects of leaving LIBOR on the fund or on certain instruments in which the fund invests may be difficult to determine, and they may vary depending on various factors, and they may result in losses for the fund.

The Fund’s portfolio is also subject to credit risk, interest rate risk, liquidity risk, prepayment risk and reinvestment risk. Interest rate risk is the risk that fixed income securities will lose value because of changes in market interest rates. Credit risk is the risk that an issuer of a security will be unable or unwilling to make dividend, interest and / or principal payments when due and that the value of a security may decline over time. result. The credit risk may be increased for the Fund as it invests in securities that are lower quality than the investment. Liquidity risk is the risk that the fund will find it difficult to sell senior loans if it seeks to repay debt, pay dividends or expenses, or take advantage of a new investment opportunity. Prepayment risk is the risk that, upon prepayment, the actual outstanding debt on which the Fund earns interest income will be reduced. The Fund may not be able to reinvest the proceeds received on such favorable terms as the prepaid loan. Reinvestment risk is the risk that the income of the Fund portfolio will decline if the Fund invests the proceeds of matured instruments traded or called at market interest rates lower than the current rate of return of the Fund portfolio.

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-ranking loans are usually secured by a second-priority security or lien on a specified guarantee securing the borrower’s obligation under the interest. Since senior loans are superior to senior loans, they present a greater investment risk. Specifically, these loans are subject to the additional risk that the cash flow of the Borrower and the assets securing the loan will be insufficient to meet the scheduled payments after giving effect to the higher priority loans. In addition, loans that have a lower priority than the first lien on the Borrower’s guarantees generally have greater price volatility than higher priority loans and may be less liquid.

Distressed securities often do not generate income while they are in circulation. The Fund may be required to incur certain extraordinary expenses in order to protect and recover its investment. The Fund will also be subject to significant uncertainty as to the timing, manner and value of obligations evidenced by distressed securities which will ultimately be satisfied.

The use of leverage can lead to additional risks and costs and can magnify the effect of any loss.

The risks associated with investing in the Fund are described in reports to shareholders and other regulatory documents.

The information presented is not intended to constitute an investment recommendation or advice to any particular person. By providing this information, First Trust does not undertake to give advice in a fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for independently assessing investment risks and exercising independent judgment in determining whether investments are appropriate for their clients.

The daily closing price of the Fund on the New York Stock Exchange and the net asset value per share as well as other information is available at or by calling 1-800-988-5891.


Comments are closed.