First Trust Advisors L.P. (“FTA”) announced today that, subject to the satisfaction of certain customary closing conditions, the reorganization of First Trust Specialty Finance and Financial Opportunities Fund (NYSE: FGB), managed by FTA and sub-advised by Confluence Investment Management LLC (“Confluence”), into FT Confluence BDC & Specialty Finance Income ETF (NYSE Arca: FBDC) is expected to become effective immediately before the opening of the NYSE on June 30, 2025.
As previously announced, the shareholders of FGB approved FGB’s reorganization into FBDC at a Special Meeting of Shareholders on May 5, 2025. The reorganization was approved by the Board of Trustees of each of FGB and FBDC on September 8-9, 2024.
Upon the completion of the transaction, which is expected to be tax-free, the assets of FGB will be transferred to, and the liabilities of FGB will be assumed by, FBDC. The shareholders of FGB will receive shares of FBDC with a value equal to the aggregate net asset value of the shares of FGB held by them.
FGB is a diversified, closed-end management investment company that seeks to provide a high level of current income, with a secondary objective of attractive total return. Under normal market conditions, FGB pursues its investment objectives by investing at least 80% of its Managed Assets in a portfolio of securities of specialty finance and other financial companies that Confluence believes offer attractive opportunities for income and capital appreciation.