BOSTON - The New America High Income Fund, Inc. (NYSE: HYB), a diversified, closed-end management investment company, announced today that its Board of Directors has approved a plan to reorganize the Fund into the T. Rowe Price High Yield Fund, a separate series of the T. Rowe Price High Yield Fund, Inc. This strategic move is pending shareholder approval, which will be sought during the Fund's Annual Meeting of Shareholders expected to be held in November 2024.
Shareholders of record will receive detailed information regarding the proposed reorganization through a combined proxy statement and prospectus. The mailing of these documents is anticipated for the third or fourth quarter of 2024. Once filed, these materials, along with other related documents, will be accessible free of charge on the U.S. Securities and Exchange Commission's website.
In conjunction with this announcement, the Fund has entered into a standstill agreement with Saba Capital Management, L.P., a significant shareholder. As part of the agreement, Saba will withdraw its notice to nominate candidates for election at the upcoming Meeting and will vote in favor of both the reorganization and the election of directors. It is expected that Saba will file a copy of this agreement with the SEC as part of its Schedule 13D.
InvestingPro Insights
As the New America High Income Fund, Inc. (NYSE: HYB) prepares for a significant reorganization into the T. Rowe Price High Yield Fund, investors are taking a closer look at the company's financial health and market performance. With a market capitalization of $174.84 million and a price-to-earnings ratio of 6.25, HYB presents an interesting profile for potential and current investors. The Fund has demonstrated stability with a revenue growth of 8.23% in the last twelve months as of Q4 2023, showing its ability to expand its financial base in a challenging economic climate.
Adding to the appeal for income-focused investors, HYB has a robust dividend yield of 7.05%, a testament to its commitment to shareholder returns. Notably, the Fund has upheld its dividend payments for an impressive 37 consecutive years, an InvestingPro Tip that highlights the company's dedication to consistent returns. Moreover, HYB is trading near its 52-week high, with its price at 99.01% of this peak, signaling strong market confidence in the Fund.
While the Fund's short-term obligations exceeding its liquid assets might raise some concerns about liquidity, the overall financials suggest a company that has managed to remain profitable over the last twelve months. For investors seeking further insights and analysis on HYB, there are additional InvestingPro Tips available at https://www.investing.com/pro/HYB, providing a deeper dive into the company's financial nuances and market position.
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