BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. Announces Final Results of Quarterly Tender Offer
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Insights
The tender offer by BNY Mellon Alcentra Global Multi-Strategy Credit Fund represents a strategic initiative to manage the fund's capital structure and provide liquidity to shareholders. The oversubscription indicates a strong shareholder response, likely due to the offer price aligning with 100% of the net asset value (NAV) per share. This alignment suggests that the fund is perceived to be accurately valued, or shareholders are seeking liquidity. The pro rata basis of share repurchase will ensure equitable treatment among shareholders.
From a financial perspective, the repurchase of shares can be accretive to the NAV per share for remaining shareholders, as the total number of outstanding shares decreases. However, it also reduces the capital available for investment by the fund. The repurchase could signal management's confidence in their ability to generate returns with a smaller capital base or a lack of attractive investment opportunities at the current time.
The tender offer's impact on the market perception of the fund should be considered. A tender offer at 100% of NAV is not common, as most closed-end funds trade at a discount to NAV. This could indicate a strategy to narrow or eliminate any discount to NAV, potentially making the fund more attractive to investors. The high demand seen in the oversubscription could reflect investor sentiment towards the fund's performance or a broader market trend where investors are seeking to liquidate positions in credit funds due to macroeconomic conditions.
Long-term implications include the potential for increased volatility in the share price due to the reduced number of shares. Additionally, the fund's performance post-tender offer will be closely watched by investors as a barometer for the efficacy of such capital management strategies.
Examining the broader economic context, the decision to execute a tender offer may reflect underlying economic conditions. If the credit markets are experiencing volatility or uncertainty, the fund's move could be interpreted as a defensive maneuver to stabilize its share price and provide an exit for shareholders seeking to reallocate their assets. Moreover, the offered purchase price being set at the net asset value could suggest that the fund is navigating a cautious balance between maintaining investor confidence and managing its liquidity amidst unpredictable market movements.
It is also essential to consider the macroeconomic factors that could influence investor behavior, such as interest rate trends, credit spreads and the economic cycle. These factors could have contributed to the shareholders' decision to tender their shares and they will continue to play a role in shaping the fund's performance and strategy going forward.
The Tender Offer, which expired at 5:00 p.m. Eastern time on February 13, 2024, was oversubscribed.
Therefore, in accordance with the terms and conditions of the Tender Offer, the Fund will purchase Shares from all tendering shareholders on a pro rata basis, after disregarding fractions, based on the number of Shares properly tendered ("Pro-Ration Factor"). The final results of the Tender Offer are provided in the table below.
Number of Shares Tendered |
Number of Tendered Shares to Be Purchased |
Pro-Ration Factor |
Purchase Price* |
531,201 |
47,719 |
.090399 |
|
*Purchase Price is equal to |
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If you have questions about the Tender Offer and hold Shares through a broker or other nominee holder, you can call your broker or other nominee holder directly. You may also call Georgeson LLC ("Georgeson"), the Fund's Tender Offer information agent, toll free at (877) 278-9670, with any questions.
The terms and conditions of the Tender Offer were set forth in the Fund's Offer to Purchase, the related Letter of Transmittal and other related documents. The Fund filed with the Securities and Exchange Commission (the "SEC") a tender offer statement on Schedule TO and related exhibits, including an Offer to Purchase, a related Letter of Transmittal and other related documents (the "Offer Documents"). Shareholders may obtain copies of the Offer Documents, without charge, by contacting Georgeson toll free at (877) 278-9670. Shareholders can also obtain the Offer Documents free of charge on the SEC's website at www.sec.gov.
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BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. is a diversified, closed-end management investment company. BNY Mellon Investment Adviser, Inc., the investment adviser for the Fund, is part of BNY Mellon Investment Management. BNY Mellon Investment Management is one of the world’s largest asset managers, with
BNY Mellon Investment Management is a division of BNY Mellon, which has
BNY Mellon Investment Management's website is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate the website in this release.
The Fund's investment returns and principal values will fluctuate so that an investor's shares may be worth more or less than the original cost. There is no assurance that the Fund will achieve its investment objective.
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For Press Inquiries:
BNY Mellon Investment Adviser, Inc.
Sue Watt
(212) 815-3757
For Other Inquiries:
BNY Mellon Securities Corporation
The National Marketing Desk
240 Greenwich Street
1-800-334-6899
Source: BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc.
FAQ
What was the percentage of shares offered in the tender offer by BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc.?
When did the Tender Offer expire for BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc.?
What was the purchase price per share set by BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. in the Tender Offer?
How will BNY Mellon Alcentra Global Multi-Strategy Credit Fund, Inc. purchase shares from tendering shareholders?
