StoneCastle Financial Corp. Announces Special Distribution of $0.05 and Regular Cash Distribution of $0.38 Per Share for Fourth Quarter 2020

Rhea-AI Summary

StoneCastle Financial Corp. (Nasdaq: BANX) has declared a total cash distribution of $0.43 per share for Q4 2020, comprising a special distribution of $0.05 per share and a regular distribution of $0.38 per share. This distribution reflects excess income generated during the year and highlights the company's investment strategy. Shareholders of record by December 21, 2020, will receive this distribution on January 5, 2021. A portion may include a return of capital, with tax notifications provided later to guide reporting.

Positive

• Declared a total cash distribution of $0.43 per share, including a special distribution of $0.05, indicating strong income generation.
• Reflects prudent investment strategy and successful transition to StoneCastle-ArrowMark Asset Management.

Negative

• None.

DENVER, Dec. 02, 2020 (GLOBE NEWSWIRE) -- StoneCastle Financial Corp. (Nasdaq: BANX) ("StoneCastle Financial" or the "Company"), an SEC registered closed-end management investment company, today announced that its Board of Directors has declared a special cash distribution of $0.05 per share generated from excess income, and a regular cash distribution of $0.38 per share for the fourth quarter 2020. The total distribution of $0.43 per share will be payable on January 5, 2021 to shareholders of record on December 21, 2020.

“This special distribution reflects the Company’s prudent investment strategy and our ability to generate income in excess of our regular quarterly dividend during 2020. It also reflects the seamless transition to StoneCastle-ArrowMark Asset Management and our continued commitment to creating long-term value for our shareholders,” said Sanjai Bhonsle, Chairman & CEO.

Disclosures

A portion of the Company’s distributions may, from time to time, include sources other than net investment income, including a return of capital. Investors should understand that a return of capital is not a distribution from income or gains of a Company. As required under the Investment Company Act of 1940, as amended, a notice with the estimated components of the distribution will be sent to shareholders at the time of payment if it does not consist solely of net investment income. The notice should not be used to prepare tax returns as the estimates indicated in the notice may differ from the ultimate federal income tax characterization of distributions. After the end of each calendar year, investors will be sent a Form 1099-DIV informing them how to report distributions received during that year for federal income tax purposes.

About StoneCastle Financial

StoneCastle Financial is an SEC registered non-diversified, closed-end investment company listed on the NASDAQ Global Select Market under the symbol “BANX.” Its investment objective is to provide stockholders with current income and, to a lesser extent, capital appreciation. StoneCastle Financial is managed by StoneCastle-ArrowMark Asset Management, LLC. To learn more, visit www.stonecastle-financial.com.

Forward-Looking Statements

This press release contains statements that are not historical facts and are forward-looking statements based on current management expectations involving substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Actual future results may differ significantly from those stated in any forward-looking statement, depending on factors such as changes in securities or financial markets or general economic conditions, the volume of sales and purchases of shares of common stock, the continuation of investment advisory, administrative and service contracts, and other risks discussed from time to time in StoneCastle Financial’s filings with the SEC.

CONTACT:

Investor Contact:
Julie Muraco                                
212-468-5441
Source: StoneCastle Financial Corp.

FAQ

What is the cash distribution amount for StoneCastle Financial (BANX) for Q4 2020?

StoneCastle Financial has declared a total cash distribution of $0.43 per share for Q4 2020.

When will the cash distribution for BANX be paid to shareholders?

The cash distribution for BANX will be paid on January 5, 2021, to shareholders of record on December 21, 2020.

What does the cash distribution from BANX consist of?

The cash distribution comprises a special distribution of $0.05 per share and a regular distribution of $0.38 per share.

What factors influenced the cash distribution declared by BANX?

The cash distribution reflects the company's ability to generate excess income beyond the regular dividend and the success of its investment strategy.

Will BANX shareholders receive tax notifications for the distribution?

Yes, shareholders will receive a Form 1099-DIV after the calendar year to assist with reporting the received distributions for federal income tax purposes.