Duff & Phelps Utility and Corporate Bond Trust Inc. to Reduce the Amount of Leverage Outstanding

CHICAGO, Aug. 22, 2013 /PRNewswire/ -- Duff & Phelps Utility and Corporate Bond Trust Inc. (NYSE: DUC), a closed-end fund advised by Duff & Phelps Investment Management Co., announces its intention to reduce the amount of leverage utilized by the fund by $65 million through the following actions on or about September 19, 2013:

• The fund will repay $17.5 million of the $142.5 million principal outstanding under its credit facility.
• The fund will redeem all 1,900 shares of the fund's outstanding Auction Market Preferred Shares, Series TH7, liquidation preference $25,000 per share (CUSIP: 26432K306).  The shares will be redeemed for 100% of their liquidation preference (an aggregate of $47.5 million) plus accrued and unpaid dividends, if any.

The reduction in the amount of leverage outstanding is intended to better align the fund's leverage ratio with current market conditions and to lessen the potential volatility of the fund.  The reduction in leverage was approved by the fund's Board of Directors and funding is expected to come from the maturity and sale of portfolio securities.  Upon completion of the transactions, the amount of leverage outstanding is expected to constitute approximately 29% of the fund's total assets.  The amount and timing of future changes to the leverage outstanding is uncertain.

About the Fund

Duff & Phelps Utility and Corporate Bond Trust Inc. is a closed-end diversified investment management company whose primary investment objective is high current income consistent with investing in securities of investment grade quality. The fund seeks to achieve its objectives by investing substantially all of its assets in a diversified portfolio of utility income securities, corporate income securities, mortgage-backed securities and asset-backed securities.  For more information, visit www.ducfund.com or call (800) 864-0629.

About the Investment Adviser

Duff & Phelps Investment Management Co. has more than 29 years of experience managing investment portfolios, including institutional separate accounts and open- and closed-end funds investing in utilities, infrastructure and real estate investment trusts (REITs). For more information, visit www.dpimc.com.

Duff & Phelps is a subsidiary of Virtus Investment Partners (NASDAQ: VRTS), a multi-boutique asset manager with $52.7 billion under management as of June 30, 2013. Virtus provides investment management products and services to individuals and institutions through a multi-manager asset management business, comprising a number of individual affiliated managers, each with a distinct investment style, autonomous investment process and individual brand. Additional information can be found at www.virtus.com.  

This communication is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.

SOURCE Duff & Phelps Utility and Corporate Bond Trust Inc.