First Trust Senior Floating Rate Income Fund II Decreases its Monthly Common Share Distribution to $

First Trust Senior Floating Rate Income Fund II Decreases its Monthly Common Share Distribution to $0.08 Per Share for September

WHEATON, Ill.--(BUSINESS WIRE)-- First Trust Senior Floating Rate Income Fund II (the "Fund") (NYS: FCT) has decreased the Fund's regularly scheduled monthly common share distribution to $0.08 per share from $0.0875 per share. The distribution will be payable on September 16, 2013 to shareholders of record as of September 5, 2013. The ex-dividend date is expected to be September 3, 2013. The monthly distribution information for the Fund appears below.

Many investors have begun considering alternative ways to generate income in this weak interest rate environment. The senior loan asset class has been a beneficiary of this trend, as investors have moved over $40.0 billion into mutual funds and exchange traded funds catering to senior loans so far this year according to EPFR Global as of July 31, 2013. The consequence of such robust demand has been declining yields as issuers have been able to refinance debt (i.e. the Fund's senior loan holdings) with lower yielding loans. The average spread for the S&P/LSTA Leverage Loan Index has declined from LIBOR+559 in December to LIBOR+498 as of August 9, 2013 according to Standard & Poor's Leveraged Commentary & Data (spreads are based on an assumed 3-year maturity). Despite the uptick in long-term interest rates, short-term interest rates (notably LIBOR), which influences the base earnings rate for senior loans (senior loans typically pay LIBOR + a spread), have largely remained unchanged. This trend has resulted in a lower income profile for the Fund and is the primary reason for the distribution decrease.

The majority, and possibly all, of this distribution will be paid out of net investment income earned by the Fund. A portion of this distribution may come from net short-term realized capital gains or return of capital. The final determination of the source and tax status of all 2013 distributions will be made after the end of 2013.

The Fund is a diversified, closed-end management investment company. The Fund's primary investment objective is to seek a high level of current income. As a secondary objective, the Fund attempts to preserve capital. The Fund pursues these investment objectives by investing in senior secured U.S. dollar-denominated floating-rate corporate loans.

First Trust Advisors L.P., the Fund's investment advisor, along with its affiliate, First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $73 billion as of July 31, 2013 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.

Past performance is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost.

Principal Risk Factors: This closed-end fund invests in below investment grade senior loans. Investment in the Fund involves the risk that borrowers may default on obligations, or that lenders may have difficulty liquidating the collateral securing the loans or enforcing their rights under the terms of the senior loans. Senior loans are subject to credit risk and the potential for non-payment of scheduled principal or interest payments, which may result in a reduction of the Fund's NAV. The use of leverage for investment purposes increases both investment opportunity and investment risk. In the event of a default on one or more loans or other interest-bearing instruments held by the Fund, the use of leverage would exaggerate the loss to the Fund and may exaggerate the effect on the Fund's NAV. The risks of investing in the Fund are spelled out in the prospectus, shareholder reports and other regulatory filings.

The Fund's daily New York Stock Exchange closing price and daily net asset value, as well as other information are available at www.ftportfolios.com or by calling 1-800-988-5891.

First Trust Senior Floating Rate Income Fund II
Press Inquiries: Jane Doyle, 630-765-8775
Analyst Inquiries: Jeff Margolin, 630-915-6784
Broker Inquiries: Jeff Margolin, 630-915-6784

KEYWORDS: United States North America Illinois

INDUSTRY KEYWORDS:

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