Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

First Security Capital and Income Fund N.V. Deal - Lehman Brothers Collection

First Security Capital and Income Fund N.V.

Company Deal160,000 capital shares and $24,000,000 7% debentures due 1981, with warrants to purchase 24,000 participating cumulative preference shares
Transaction TypeCapital Shares / Debentures / Warrants to Purchase Participating Cumulative Preference Shares
Deal DescriptionFirst Security Capital and Income Fund N.V. was a closed-end investment company until the maturity of the debentures and the repurchase of the preference shares. The fund sought income growth for the preference shares and capital appreciation for the capital shares by investing primarily in convertible debt securities issued in the U.S. and Eurodollar capital markets by U.S. corporations or guaranteed by such corporations. The purpose of the fund's capital structure was to provide investment leverage for both the holders of preference shares and the holders of capital shares by offering current income from the combined capital base to holders of the debentures and preference shares and long-term growth of principal to holders of the capital shares. The assets of the fund were invested in a professionally managed portfolio of convertible debt securities, with the objective of seeking long-term growth of both capital and income.
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