MINNEAPOLIS, Aug. 12 /PRNewswire-FirstCall/ -- American Strategic Income
Portfolio Inc. (ASP), American Strategic Income Portfolio Inc.-II (BSP),
American Strategic Income Portfolio Inc.-III (CSP) and American Select
Portfolio Inc. (SLA) (collectively, the Funds) announced today that they have
filed an amended application for an exemptive order from the Securities and
Exchange Commission (SEC) which would permit them to merge into First American
Strategic Real Estate Portfolio Inc., a newly-organized specialty finance
company that will elect to be taxed as a real estate investment trust for
federal income tax purposes (the REIT). The transaction was first announced
on March 20, 2002.
In the proposed transaction, a majority of the outstanding shares of a
Fund must be voted in favor of the transaction in order for that Fund to
participate in the merger. Shares of the Funds approving the merger will be
converted into REIT shares based on an equivalent net asset value basis.
As previously announced, shareholders of approving Funds who do not wish
to receive REIT shares can elect to receive, instead, shares of First American
Strategic Income Portfolio Inc., a newly-formed closed-end mutual fund (the
New Fund) with investment objectives and strategies which are substantially
similar to those of the Funds. Like the exchange for REIT shares, this
exchange also would be based on an equivalent net asset value basis. When the
transaction is completed, the approving Funds' assets and liabilities will be
allocated between the REIT and the New Fund based on the relative net asset
values attributable to Fund shareholders receiving REIT shares and those
receiving New Fund shares. The receipt of REIT shares (but not of New Fund
shares) by Fund shareholders in the transaction is expected generally to be
The amended exemptive order application, which is publicly available from
the SEC, sets forth four changes in the transaction as previously announced.
First, a Fund shareholder can no longer vote in favor of the merger, and still
elect to receive New Fund shares rather than REIT shares. Rather, to elect to
receive New Fund shares, a shareholder must not vote in favor of the merger
(i.e., the shareholder must vote against the merger or abstain from voting).
This change eliminates the need for the pro-rationing procedures which were
previously included in the transaction. Under those procedures, if more than
49% of an approving Fund's shares were subject to New Fund elections, each
electing shareholder would have received a combination of New Fund shares and
Second, under the transaction as previously announced, if the New Fund
failed to reach the necessary size to list on the American Stock Exchange --
which could occur if few approving Fund shareholders made New Fund elections
-- the mergers of the approving Funds into the REIT would not have been
completed. Under the revised transaction, if the New Fund fails to satisfy
these listing requirements and does not have at least $50 million in net
assets, the mergers of approving Funds into the REIT nevertheless will be
completed. However, in that case, the electing shareholders will receive cash
in an amount equal to the net asset value of their Fund shares rather than
receiving New Fund shares, and the New Fund will not be formed.
Third, due to a change in the Minnesota Business Corporation Act, Fund
shareholders will not be entitled to exercise statutory dissenters rights of
appraisal in connection with the proposed transaction. Finally, U.S. Bancorp
Asset Management, Inc., which is the investment advisor to the Funds, the REIT
and the New Fund, will voluntarily waive 10 basis points of its advisory fees
for the New Fund and for any non-approving Fund for a period of 30 months
following the transaction.
As previously announced, participation by any Fund in the proposed
transaction is subject to a number of conditions, including approval by its
shareholders; receipt by the Funds of the SEC exemptive order for which an
amended application has been filed; the registration under the Securities Act
of 1933, as amended, of the REIT shares and the New Fund shares to be issued
in the transaction; the listing of the REIT shares on the New York Stock
Exchange; and the REIT having net assets of at least $200 million when the
transaction is completed. In addition, before the transaction is submitted
for a shareholder vote, it is anticipated that the Funds' Boards of Directors
will obtain updated financial fairness opinions and will consider formal
action re-approving the transaction.
THE REIT HAS FILED A REGISTRATION STATEMENT ON FORM S-4 AND AMENDMENT NOS.
1, 2 AND 3 THERETO WITH THE SEC, WHICH INCLUDES A JOINT PROXY STATEMENT OF THE
FUNDS AND A PROSPECTUS OF THE REIT, EACH IN PRELIMINARY FORM. THE REIT AND
THE NEW FUND WILL BE FILING OTHER RELEVANT DOCUMENTS CONCERNING THE
TRANSACTION WITH THE SEC, INCLUDING AN ADDITIONAL AMENDMENT TO THE
REGISTRATION STATEMENT ON FORM S-4 WHICH DESCRIBES THE CHANGES SET FORTH IN
THE AMENDED EXEMPTIVE ORDER APPLICATION AND THIS PRESS RELEASE. WE URGE
INVESTORS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS IN ITS AMENDED FORM AND
ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC BECAUSE THEY CONTAIN
IMPORTANT INFORMATION. INVESTORS WILL BE ABLE TO OBTAIN THE DOCUMENTS (OTHER
THAN THE AMENDED EXEMPTIVE ORDER APPLICATION) FREE OF CHARGE AT THE SEC'S WEB
SITE, HTTP://WWW.SEC.GOV . THE AMENDED EXEMPTIVE ORDER APPLICATION MAY BE
READ AND COPIED AT THE SEC'S PUBLIC REFERENCE ROOM AT 450 FIFTH STREET, N.W.,
WASHINGTON, D.C. 20549. IN ADDITION, DOCUMENTS FILED BY THE FUNDS, THE REIT
AND THE NEW FUND (INCLUDING THE AMENDED EXEMPTIVE ORDER APPLICATION) WILL BE
AVAILABLE FREE OF CHARGE FROM INVESTOR SERVICES, U.S. BANCORP ASSET
MANAGEMENT, INC., 800 NICOLLET MALL, MINNEAPOLIS, MINNESOTA 55402, TELEPHONE:
PLEASE READ THE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING A
DECISION CONCERNING THE PROPOSED TRANSACTION.
THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF ANY SECURITIES FOR
Each of the Funds and its Board of Directors and executive officers and
U.S. Bancorp Asset Management, Inc. and its executive officers may be deemed
to be participants in the solicitation of proxies from Fund shareholders in
favor of the reorganization. It is expected that certain current officers of
U.S. Bancorp Asset Management, Inc. will be executive officers and directors
of the REIT. Information regarding the interests of the Funds' officers and
directors in the transaction will be included in the joint proxy
statement/prospectus. Information regarding the interests of U.S. Bancorp
Asset Management, Inc. and its officers and directors in the transaction also
will be included in the joint proxy statement/prospectus. In addition to the
joint proxy statement/prospectus to be mailed to the shareholders of the Funds
in connection with the transaction, each Fund files proxy and information
statements and other reports with the SEC.
Investors may read and copy any of these reports, statements and other
information at the SEC's public reference room located at 450 Fifth Street,
N.W., Washington, D.C. 20549. Investors should call the SEC at 1-800-SEC-0330
for further information on the public reference room. The reports, statements
and other information filed by the Funds with the SEC are also available for
free at the SEC's web site at http://www.sec.gov . A free copy of these
reports, statements and other information may also be obtained from U.S.
Bancorp Asset Management, Inc. as set forth above.
BASED IN MINNEAPOLIS, U.S. BANCORP ASSET MANAGEMENT, INC., (NYSE: USB) IS
A SUBSIDIARY OF U.S. BANK NATIONAL ASSOCIATION. IT PROVIDES INVESTMENT
MANAGEMENT SERVICES TO INDIVIDUALS AND INSTITUTIONS -- INCLUDING CORPORATIONS,
FOUNDATIONS, PENSION FUNDS, PUBLIC FUNDS AND RETIREMENT PLANS -- AND HAS
ASSETS UNDER MANAGEMENT OF MORE THAN $122 BILLION AS OF JUNE 30, 2004.
U.S. BANCORP ASSET MANAGEMENT, INC., SERVES AS THE INVESTMENT ADVISER TO
THE FUNDS. U.S. BANK NATIONAL ASSOCIATION IS A SEPARATE ENTITY AND WHOLLY-
OWNED SUBSIDIARY OF U.S. BANCORP, THE EIGHTH LARGEST FINANCIAL SERVICES
HOLDING COMPANY IN THE UNITED STATES AND A LEADING PROVIDER OF COMPREHENSIVE
BANKING, TRUST, INVESTMENT AND PAYMENT SYSTEMS PRODUCTS AND SERVICES. U.S.
BANCORP IS THE PARENT COMPANY OF U.S. BANK NATIONAL ASSOCIATION.
Nondeposit investment products are not insured by the FDIC, are not
deposits or other obligations of or guaranteed by U.S. Bank National
Association or its affiliates, and involve investment risks, including
possible loss of the principal amount invested.
SOURCE U.S. Bancorp Asset Management, Inc.
/CONTACT: Cheryl B. Stone, Vice President, Public Relations, of U.S.
Bancorp Asset Management, +1-612-303-5657/
CO: U.S. Bancorp Asset Management, Inc.; U.S. Bancorp; First American
Strategic Real Estate Portfolio Inc.
IN: FIN MFD
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8113 08/12/2004 15:19 EDT http://www.prnewswire.com