Prudential Investments announced the initial public offering of the Prudential
Global Short Duration High Yield Fund, Inc. (the Fund). The Fund
raised $740 million in its common share offering ($851 million assuming
full exercise of the underwriters' overallotment option, which may not
occur) and its shares began trading today on the New York Stock Exchange
under the symbol "GHY."
The Fund is a newly organized closed-end fund that seeks to provide
investors with a high level of current income. It invests in a global
portfolio consisting primarily of higher-rated high yield bonds.1
It seeks to maintain a weighted average portfolio duration of three
years or less and a weighted average maturity of five years or less.
There is no guarantee the Fund's objective will be achieved.
"This new closed-end fund should help investors address the challenge of
finding yield in today's low interest rate environment by offering
access not only to the U.S. short duration high yield market, but also
to the rapidly growing non-U.S. market," said Stuart Parker, president
of Prudential Investments. "Many non-U.S. bonds are currently providing
higher yields than similarly-rated U.S. bonds."
The Fund's portfolio managers are part of Prudential Fixed Income, a
credit-research-driven fixed income manager with a sharp focus on
managing risk. Prudential Fixed Income has been managing fixed income
portfolios since 1875 and is among the largest fixed income managers in
the United States, with about $356 billion in assets under management as
of September 30, 2012. Day-to-day Fund management is provided by
Prudential Fixed Income's Leveraged Finance Team, whose 12-member
portfolio management team averages 20 years of experience. The team is
supported by 28 experienced high yield and bank loan analysts.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global
Markets Inc., Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC
are acting as lead underwriters of the offering.
Prudential Investments, the mutual fund and wealth management business
of Prudential Financial, Inc. (NYSE: PRU), oversees Prudential Mutual
Funds, which focuses on traditional mutual funds, separately managed
accounts, and Investment Only Defined Contribution businesses.
Prudential Investments also maintains two other business unit, Wealth
Management Solutions and Strategic Investment Research Group.
Prudential Financial, Inc., a financial services leader with
approximately $1 trillion of assets under management as of September 30,
2012, has operations in the United States, Asia, Europe, and Latin
America. Prudential's diverse and talented employees are committed to
helping individual and institutional customers grow and protect their
wealth through a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds and
investment management. In the United States, Prudential's iconic Rock
symbol has stood for strength, stability, expertise and innovation for
more than a century. For more information, please visit http://www.news.prudential.com/.
The Fund is a newly organized registered closed-end management
company with no operating history. Shares of closed-end investment
companies, such as the Fund, usually trade on a national stock exchange,
and these shares frequently trade at a discount to their net asset
value, which may increase investors' risk of loss.
An investment in the Fund's shares of common stock may be speculative
in that involves a high degree of risk and should not constitute a
complete investment program. Each closed-end fund will have its own
unique investment strategy, risks, charges and expenses that need to be
considered before investing. The prospectus, which contains this and
other information about the Fund, should be read carefully before
Investing in this diversified Fund involves certain risks and the
Fund may not achieve its intended results for a variety of reasons,
including, among others, the possibility that the Fund may not
successfully implement its investment strategy, because of market,
economic, regulatory, geopolitical and other conditions. U.S. and
foreign governments have taken a number of unprecedented actions
designed to support certain financial institutions and segments of the
financial markets that have experienced extreme volatility, and in some
cases a lack of liquidity. The impact of these measures, as well
as any additional future regulatory actions, is not yet known and cannot
be predicted. Legislation or regulation may also change the way in which
the Fund is regulated and could limit or preclude the Fund's ability to
achieve its investment objective. Because the market price of the
Fund's common stock will fluctuate, there is a risk that investors will
lose money. Investments will decline in value if, among other things,
the market price of the Fund's common stock decreases. As with any
security, a complete loss of an investment is possible. The Fund may
seek to enhance the level of its current distributions to holders of
common stock through the use of leverage, which may magnify
losses and increase a portfolio's expenses. Fixed income investments
are subject to interest rate risk, where their value will decline as
interest rates rise.
SIRG is a unit of Prudential Investments LLC, and a research unit of
Prudential Financial. SIRG provides research, analysis and due diligence
on investment management firms and the vehicles and strategies they
offer. Wealth Management Solutions is a division of Prudential
Investments LLC, Newark, NJ, a Prudential Financial company.
Prudential Fixed Income is a business unit of Prudential Investment
Management LLC, a registered investment advisor and a Prudential
Financial company. Prudential Investments, Prudential, the
Prudential logo, and the Rock symbol are service marks of Prudential
Financial, Inc. and its related entities, registered in many
This news release is not an offer to sell these securities and is not
soliciting an offer to buy these securities in any state where the offer
or sale is not permitted. Investors should contact their financial
professional to obtain a copy of the prospectus and read it carefully
1 Higher-rated high yield bonds are below investment grade,
commonly referred to as "junk bonds," and are considered speculative.
Rated Ba, B by Moody's Investors Service, Inc.; BB, B by Standard &
Poor's Ratings Services or Fitch, Inc.; or comparably rated by another
nationally recognized statistical rating organization (NRSRO).
Control Number: 0236793-00001-00
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