FCT Issues Shareholder Instructions for ETF Conversion, Sets Automatic Sale Deadline
Summary
First Trust Senior Floating Rate Income Fund II (FCT) has issued detailed instructions for shareholders to manage their holdings ahead of its planned conversion to an ETF, including a deadline for action to avoid automatic share sales.
Key Events
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Shareholder Action Required
Direct shareholders must transfer their shares to a brokerage account or redeem them with Computershare, the transfer agent.
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Deadline for Action
Actions must be completed at least 10 days prior to the anticipated August 7, 2026 reorganization date, which is expected to be July 28, 2026.
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Automatic Share Sale if No Action
If no action is taken by the deadline, shares will be automatically sold two days later, 8 days prior to the reorganization date.
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ETF Conversion Update
This filing provides operational details for the previously announced conversion of FCT into the First Trust Flexible Income ETF (FFLX), pending shareholder approval on June 25, 2026.
Analysis
This filing provides critical operational details for shareholders of First Trust Senior Floating Rate Income Fund II (FCT) regarding its proposed conversion into an actively managed ETF. Shareholders must take action to transfer or redeem their shares by July 28, 2026, or their shares will be automatically sold. This is a crucial step in the reorganization process, following the previously announced plan to convert to an ETF.
At the time of this filing, FCT was trading at $9.60 on NYSE in the Unknown sector, with a market capitalization of approximately $249.4M. The 52-week trading range was $9.40 to $10.29. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.