 |
|
For Immediate Release
THE NEW AMERICA HIGH INCOME FUND, INC. DECLARES DIVIDEND
Boston, Massachusetts, February 29, 2008 -- The New America High Income Fund, Inc. (the "Fund")(NYSE:HYB) announced today that it intends to pay a dividend of $.013 per share on the company's common stock on March 31, 2008 to common shareholders of record as of the close of business on March 17, 2008. The ex-dividend date will be March 13th.
The Fund's capital structure employs leverage in the form of an Auction Term Preferred Stock (the "ATP") which pays dividends based on a rate that resets through a monthly auction procedure. The reduced dividend reflects lower net income available for distribution to common stockholders due to a reduced contribution to earnings from the Fund's leverage and a related interest rate swap.
In late summer 2007, as the consequences of the sub-prime mortgage collapse spread, demand for auction rate securities like the Fund's ATP fell sharply, resulting in a higher dividend rate for the ATP. Beginning in August the rate set in the ATP auctions rose sharply to as high as 200 basis points above LIBOR, increasing the Fund's costs, and thereby decreasing its net income. Investor demand for auction rate securities has continued to decline in 2008 with insufficient buyer interest resulting in the recently reported auction failures. Under the terms of the ATP, the maximum dividend rate payable on the ATP is 150% of the AA-rated 30 day commercial paper rate. The principal consequence to the Fund of a failed auction is that it must pay the maximum dividend rate on the ATP until the next auction date when the dividend rate for the succeeding 28 day period is determined. To date, the Fund has had two auction failures, resulting in a dividend rate of 4.512% in the most recent instance. The Fund will continue to actively monitor conditions in the auction rate securities markets and look for avenues to address their impact on the Fund's leverage.
The New America High Income Fund, Inc. is a diversified, closed-end management investment company with a leveraged capital structure. The Fund's investment adviser is T. Rowe Price Associates, Inc. ("T. Rowe Price"). As of December 31, 2007, T. Rowe Price and its affiliates managed approximately $400 billion of assets, including approximately $10.5 billion of "high yield" investments. T. Rowe Price has provided investment advisory services to investment companies since 1937.
View other press releases:
December 19, 2008
December 1, 2008
November 19, 2008
October 31, 2008
October 1, 2008
September 2, 2008
August 1, 2008
July 2, 2008
June 2, 2008
May 1, 2008
April 1, 2008
December 18, 2007
December 4, 2007
November 1, 2007
October 1, 2007
September 18, 2007
September 12, 2007
September 4, 2007
August 16, 2007
July 24, 2007
July 12, 2007
July 2, 2007
June 1, 2007
May 15, 2007
May 1, 2007
April 2, 2007
March 1, 2007
December 18, 2006
December 1, 2006
November 1, 2006
October 2, 2006
September 6, 2006
August 1, 2006
July 5, 2006
June 1, 2006
May 1, 2006
April 3, 2006
March 1, 2006
December 20, 2005
December 1, 2005
November 2, 2005
October 5, 2005
September 1, 2005
August 1, 2005
July 5, 2005
June 2, 2005
May 4, 2005
April 4, 2005
March 2, 2005
December 21, 2004
December 3, 2004
November 5, 2004
October 5, 2004
September 3, 2004
August 3, 2004
July 1, 2004
June 3, 2004
May 3, 2004
April 2, 2004
March 3, 2004
December 22, 2003
December 1, 2003
November 4, 2003
October 17, 2003
October 2, 2003
September 3, 2003
August 19, 2003
August 19, 2003
August 4, 2003
July 21, 2003
July 11, 2003
July 3, 2003
June 3, 2003
May 23, 2003
May 5, 2003
April 3, 2003
March 3, 2003
|
