[Federal Register Volume 62, Number 115 (Monday, June 16, 1997)]
[Notices]
[Pages 32667-32668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15714]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. IC-22696; 811-5741]
AIM Strategic Income Fund, Inc.; Notice of Application
June 10, 1997.
AGENCY: Securities and Exchange Commission (``SEC'').
ACTION: Notice of application for deregistration under the Investment
Company Act of 1940 (the ``Act'').
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APPLICANT: AIM Strategic Income Fund, Inc.
RELEVANT SECTION OF ACT: Order requested under section 8(f).
SUMMARY OF APPLICATION: Applicant seeks an order declaring that it has
ceased to be an investment company.
FILING DATES: The application was filed on December 23, 1996, and
amended on April 9, 1997.
HEARING OR NOTIFICATION OF HEARING: An order granting the application
will be issued unless the SEC orders a hearing. Interested persons may
request a hearing by writing to the SEC's Secretary and serving
applicant with a copy of the request, personally or by mail. Hearing
requests should be received by the SEC by 5:30 p.m. on July 7, 1997,
and should be accompanied by proof of service on the applicant, in the
form of an affidavit or, for lawyers, a certificate of service. Hearing
requests should state the nature of the writer's interest, the reason
for the request, and the issues contested. Persons may request
notification of a hearing by writing to the SEC's Secretary.
ADDRESSES: Secretary, SEC, 450 Fifth Street, NW., Washington, DC 20549.
Applicant, 11 Greenway Plaza, Suite 1919, Houston, Texas 77046.
FOR FURTHER INFORMATION CONTACT:
H.R. Hallock, Jr., Special Counsel, at (202) 942-0564, or Mercer E.
Bullard, Branch Chief, at (202) 942-0564 (Division of Investigation
Management,
[[Page 32668]]
Office of Investment Company Regulation).
SUPPLEMENTARY INFORMATION: The following is a summary of the
application. The complete application may be obtained for a fee from
the SEC's Public Reference Branch.
Applicant's Representations
1. Applicant, a Maryland corporation, is a closed-end management
investment company. Applicant registered under the Act and filed a
registration statement on Form N-2 under section 8(b) of the Act on
December 23, 1988. The registration statement was made effective and
applicant commenced an initial public offering of its shares on March
23, 1989.
2. On March 12, 1996, applicant's board of directors (the
``Board'') approved an Agreement and Plan of Reorganization (the
``Agreement'') between applicant and AIM Funds Group (``AFG''), an
open-end management investment company with multiple portfolios. The
Agreement provided for the sale of applicant's assets to the AIM High
Yield Fund (the ``Acquiring Fund''), a portfolio of AFG, in exchange
for shares of the Acquiring Fund (the ``Reorganization''). Applicant
and the Acquiring Fund have the same investment adviser, AIM Advisors,
Inc., and accordingly may be deemed to be affiliated persons of one
another. Applicant therefore relied on rule 17a-8 under the Act of
effect the Reorganization.\1\
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\1\ Rule 17a-8 provides an exemption from section 17(a) of the
Act for certain reorganizations among registered investment
companies that may be affiliated persons, or affiliated persons of
an affiliated person, solely by reason of having a common investment
adviser, common directors, and/or common officers.
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3. As required by rule 17a-8, the Board, including each of
applicant's directors who is not an ``interested person'' of applicant,
found that the Reorganization was in applicant's best interests and
would not dilute the interests of its existing shareholders. The Board
determined that consummation of the Reorganization was in the best
interests of applicant's shareholders because, among other things, it
would eliminate the discount from net asset value at which applicant's
shares had normally traded. Other important considerations in the
Board's determination were that (a) applicant and the Acquiring Fund
had a similar investment objective of seeking high current income, (b)
the Acquiring Fund's effective advisory fee was lower than applicant's
fee, (c) the Acquiring Fund's yield was higher than applicant's yield,
and (d) applicant's shareholders would be able to exchange their shares
for shares of other funds in The AIM Family of Funds at net asset
value.
4. At the time of the Reorganization, the Acquiring Fund had two
classes of shares--Class A shares with a front-end sales charge and a
12b-1 fee and Class B shares with a deferred sales charge and a higher
12b-1 fee. The Agreement provided that applicant's shareholders would
receive the number of Class A shares of the Acquiring Fund upon
consummation of the Reorganization having an aggregate net asset value
equal to the net value of applicant's assets transferred to the
Acquiring Fund. The front-end charge normally associated with sales of
the Acquiring Fund's Class A shares was waived. The Board deemed it to
be in the best interest of applicant's shareholders to receive the
Acquiring Fund's Class A shares at net asset value.
5. On or about June 7, 1996, a combined proxy statement/prospectus
was distributed to applicant's shareholders. At the annual meeting of
applicant's shareholders on July 19, 1996, a majority of shareholders
voted for approval of the Agreement and consummation of the
Reorganization.
6. As of July 26, 1996, the business day immediately preceding the
Reorganization, applicant had 6,976,644 shares of common stock
outstanding with an aggregate net asset value of $69,521,407.14 or
$9.81 per share. On July 29, 1996, applicant transferred all of its
assets to the Acquiring Fund and the Acquiring Fund assumed all of the
liabilities of applicant. In addition, the Acquiring Fund issued
directly to each of applicant's shareholders that number of the
Acquiring Fund's Class A shares with an aggregate net asset value equal
to the aggregate net asset value of his or her shares of applicant.
7. Expenses incurred in connection with the Reorganization included
legal fees, accounting fees, proxy fees and proxy solicitation fees.
Applicant paid all of such expenses, which amounted to $144,930.39.
Applicant did not pay any brokerage commissions in connection with the
transfer of its assets to the Acquiring Fund.
8. As of the date of filing of the initial application applicant
had no shareholders, assets, outstanding debt or expenses. Applicant is
not a party to any litigation or administrative proceeding. Applicant
is neither engaged, nor does it propose to engage, in any business
activities other than those necessary for the winding-up of its
affairs.
9. Applicant intends to file articles of dissolution with the State
of Maryland.
For the SEC, by the Division of Investment Management, under
delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-15714 Filed 6-13-97; 8:45 am]
BILLING CODE 8010-01-M