Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II Announce Private Placement of Mandatory Redeemable Preferred Shares
26 Maggio 2023 - 10:05PM
Business Wire
Virtus Convertible & Income Fund (NYSE: NCV) and Virtus
Convertible & Income Fund II (NYSE: NCZ), closed-end funds,
today announced the issuance of mandatory redeemable preferred
(“MRP”) shares.
NCV issued shares in two series:
Series
# of Shares
Total Offering
Maturity Date
A
2,040,000
$51 million
May 26, 2028
B
600,000
$15 million
May 26, 2030
NCZ issued:
Series
# of Shares
Total Offering
Maturity Date
A
880,000
$22 million
May 26, 2028
The shares of each series mentioned above have a par value of
$0.00001 per share, a liquidation value of $25, a fixed rate of
5.95% per annum, and will pay dividends on a quarterly basis. Each
Fund intends to use the net proceeds from its issuance, along with
security sales, to pay down its respective temporary liquidity
facilities, which were put into place on November 1, 2022,
coincident with the settlement of the tender offer for the Funds’
auction rate preferred shares (ARPS).
The newly issued MRP shares are part of a larger capital
restructuring for the Funds that is intended to help reduce overall
borrowing levels and create a more flexible capital structure by
having short-, mid- and long-term borrowings for each Fund. In
addition to the MRP shares, each Fund’s borrowing structure will
still consist of an allocation to a short-term liquidity facility
as well as cumulative preferred shares for the purpose of providing
financial leverage to common shareholders.
The MRP shares were privately placed with an institutional
investor by UBS Securities LLC, the placement agent for the
offerings.
About the Funds
Virtus Convertible & Income Fund (NCV) and Virtus
Convertible & Income Fund II (NCZ) each have an investment
objective to provide total return through a combination of capital
appreciation and high current income. Virtus Investment Advisers,
Inc. is the investment adviser and Voya Investment Management is
the subadviser to each fund. For more information on the funds,
contact Shareholder Services at (866) 270-7788, by email at
closedendfunds@virtus.com, or through the closed-end funds section
of virtus.com.
Fund Risks
An investment in a fund is subject to risk, including the risk
of possible loss of principal. A fund’s shares may be worth less
upon their sale than what an investor paid for them. Shares of
closed-end funds may trade at a premium or discount to their net
asset value. For more information about each fund’s investment
objective and risks, please see the fund’s annual report. A copy of
the most recent annual report may be obtained free of charge by
contacting Shareholder Services.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
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version on businesswire.com: https://www.businesswire.com/news/home/20230526005069/en/
For Further Information:
Shareholder Services (866) 270-7788 closedendfunds@virtus.com
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