486APOS: Voya Credit Income Fund Files Post-Effective Amendment to Registration Statement

Voya Credit Income Fund updates its prospectus and statement of additional information through a post-effective amendment, aiming for effectiveness on June 28, 2024.

Summary

• Voya Credit Income Fund filed Post-Effective Amendment No. 11 to its Form N-2 registration statement.
• The amendment updates the prospectus and statement of additional information to comply with annual updating requirements.
• The filing is made under Rule 486(a) of the Securities Act of 1933 and is expected to become effective on June 28, 2024.
• The Fund is a continuously-offered, diversified, closed-end management investment company.
• The Fund's investment objective is to provide investors with a high level of monthly income by allocating assets among various credit sectors.
• The Fund invests at least 80% of its net assets in floating-rate obligations, fixed-income securities, and derivative instruments intended to provide economic exposure to such credit sectors.
• The Fund may borrow money in an amount permitted under the 1940 Act, including the rules and regulations thereunder, and under the terms of applicable no-action relief or exemptive orders granted thereunder.
• The Fund currently has a credit facility with The Bank of Nova Scotia that permits the Fund to borrow up to an aggregate amount of $40 million.
• As of June 6, 2024, the Fund had $14.7 million in outstanding borrowings under its credit facility.
• The Fund offers four classes of shares: Class A, Class C, Class I, and Class W.
• The Fund conducts monthly repurchase offers for its Common Shares at net asset value (NAV) per Common Share in an amount not less than 5% of its outstanding Common Shares each month nor more than 25% of its outstanding Common Shares in any calendar quarter.

Sentiment

Score: 6

Explanation: The document is primarily informational, detailing the filing of a post-effective amendment. While it outlines investment strategies and risks, the overall tone is neutral and factual.

Positives

• The fund aims to provide a high level of monthly income.
• The fund invests in a diversified range of credit sectors.
• The fund offers monthly repurchase offers for its Common Shares at net asset value (NAV) per Common Share in an amount not less than 5% of its outstanding Common Shares each month nor more than 25% of its outstanding Common Shares in any calendar quarter.

Negatives

• The Fund's Common Shares are not listed on any national securities exchange and it is not anticipated that a secondary market for the Common Shares will develop.
• Common Shares are speculative and involve a high degree of risk, including the risk of a substantial loss of investment.
• The amount of distributions that the Fund may pay, if any, is uncertain.
• The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Funds performance, such as from offering proceeds and borrowings.
• The Fund may invest in below investment grade investments (junk instruments), securities which are at risk of default as to the repayment of principal and/or interest at the time of acquisition by the Fund or are rated in the lower rating categories or are unrated.
• The use of leverage through borrowings or the issuance of Preferred Shares can adversely affect the yield on the Common Shares.
• The Fund is subject to certain restrictions imposed by lenders to the Fund and may be subject to certain restrictions imposed by guidelines of one or more rating agencies which may issue ratings for debt or the Preferred Shares issued by the Fund.

Risks

• The Fund's Common Shares are not listed on any national securities exchange and it is not anticipated that a secondary market for the Common Shares will develop.
• Common Shares are speculative and involve a high degree of risk, including the risk of a substantial loss of investment.
• The amount of distributions that the Fund may pay, if any, is uncertain.
• The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Funds performance, such as from offering proceeds and borrowings.
• The Fund may invest in below investment grade investments (junk instruments), securities which are at risk of default as to the repayment of principal and/or interest at the time of acquisition by the Fund or are rated in the lower rating categories or are unrated.
• The use of leverage through borrowings or the issuance of Preferred Shares can adversely affect the yield on the Common Shares.
• The Fund is subject to certain restrictions imposed by lenders to the Fund and may be subject to certain restrictions imposed by guidelines of one or more rating agencies which may issue ratings for debt or the Preferred Shares issued by the Fund.
• Market fluctuations and general economic conditions can adversely affect the Fund.
• There is no guarantee that the Fund will achieve its investment objective.

Future Outlook

The Fund may consider issuing Preferred Shares during the current fiscal year or in the future.

Industry Context

The document does not provide specific details on how this announcement relates to broader industry trends or competitors.

Stakeholder Impact

• Shareholders will receive updated information about the Fund's investment strategies, risks, and expenses.
• The Fund's continuous offering allows investors to buy shares through selected broker-dealers and financial services firms.

Next Steps

• The post-effective amendment is expected to become effective on June 28, 2024.

Key Dates

Keywords

credit income fund, closed-end fund, investment company, credit sectors, fixed-income, floating-rate, high yield, CLOs, repurchase offers, leverage, Voya