Franklin Universal Trust Announces Partial Prepayment of Senior Fixed Rate Notes
|From:||Franklin Advisers, Inc.|
|Contact:||Franklin Templeton Fund Information|
San Mateo, CA, October 15, 2008 -- Franklin Universal Trust [NYSE:FT], a closed-end investment company managed by Franklin Advisers, Inc., announced today that on October 14, 2008, it made a partial prepayment of its 5.87% senior fixed rate notes due August 28, 2013 (the “Notes”) in the amount of $8 million. The partial prepayment was made following the unprecedented volatility in the fixed income and equity markets in order to restore the asset coverage required by the terms of the Notes for the payment of dividends that have been declared on the Trust’s common shares. As a result of the partial prepayment of the Notes, the Trust incurred an early payment penalty of $951,222. After the partial prepayment of the Notes, the Trust has $57 million of Notes outstanding and net assets of approximately $124.5million as of October 14, 2008.
Franklin Advisers, Inc. is a wholly owned subsidiary of Franklin Resources, Inc. [NYSE:BEN], a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $507billion in assets under management as of September 30, 2008. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.