BlackRock Announces Board Approval of New Tender Offers for BlackRock Innovation and Growth Term Trust (BIGZ) and BlackRock Health Sciences Term Trust (BMEZ)
BlackRock has announced significant tender offers for two of its trust funds. The BlackRock Innovation and Growth Term Trust (BIGZ) will repurchase 50% of its outstanding shares, while the BlackRock Health Sciences Term Trust (BMEZ) will repurchase 40% of its outstanding shares. Both offers will be priced at 99.5% of each fund's net asset value per common share.
These tender offers are part of agreements with Saba Capital Management that will remain effective through each fund's 2027 proxy season. Under these agreements, Saba has committed to follow certain standstill covenants, withdraw its 2025 shareholder proposal, and vote according to the Board's recommendations.
As a result, both funds will cancel their previously announced tender offers for the quarterly measurement period ended December 31, 2024, and terminate their existing discount management programs effective immediately.
BlackRock ha annunciato significativi programmi di acquisto per due dei suoi fondi fiduciari. Il BlackRock Innovation and Growth Term Trust (BIGZ) riacquisterà il 50% delle sue azioni in circolazione, mentre il BlackRock Health Sciences Term Trust (BMEZ) riacquisterà il 40% delle sue azioni in circolazione. Entrambi i programmi saranno valutati al 99,5% del valore netto dell'attivo per ciascuna azione comune.
Questi programmi di acquisto fanno parte di accordi con Saba Capital Management che rimarranno in vigore fino alla stagione di voto del 2027 di ciascun fondo. In base a questi accordi, Saba si è impegnata a rispettare determinati contratti di non interferenza, ritirare la sua proposta per gli azionisti del 2025 e votare secondo le raccomandazioni del Consiglio.
Di conseguenza, entrambi i fondi annulleranno i loro programmi di acquisto già annunciati per il periodo di misurazione trimestrale terminato il 31 dicembre 2024 e termineranno immediatamente i loro programmi esistenti di gestione degli sconti.
BlackRock ha anunciado ofertas de compra significativas para dos de sus fondos fiduciarios. El BlackRock Innovation and Growth Term Trust (BIGZ) recomprará el 50% de sus acciones en circulación, mientras que el BlackRock Health Sciences Term Trust (BMEZ) recomprará el 40% de sus acciones en circulación. Ambas ofertas tendrán un precio del 99.5% del valor neto de activos por acción común.
Estas ofertas de compra son parte de acuerdos con Saba Capital Management que permanecerán vigentes hasta la temporada de votación de 2027 de cada fondo. Según estos acuerdos, Saba se ha comprometido a seguir ciertos convenios de no interferencia, retirar su propuesta de accionistas para 2025 y votar de acuerdo con las recomendaciones de la Junta.
Como resultado, ambos fondos cancelarán sus ofertas de compra previamente anunciadas para el período de medición trimestral que finalizó el 31 de diciembre de 2024 y pondrán fin a sus programas existentes de gestión de descuentos con efecto inmediato.
블랙록은 두 개의 신탁에 대한 중요한 매입 제안을 발표했습니다. 블랙록 혁신 및 성장 기한 신탁 (BIGZ)는 발행된 주식의 50%를 재구매할 것이며, 블랙록 건강 과학 기한 신탁 (BMEZ)는 발행된 주식의 40%를 재구매할 것입니다. 두 제안 모두 각 기금의 일반 주식당 순자산 가치의 99.5%에 가격이 책정됩니다.
이 매입 제안은 사바 캐피탈 매니지먼트와의 협약의 일환으로, 각 기금의 2027년 주주 총회 기간까지 유효합니다. 이러한 협약에 따라 사바는 특정 중단 조항을 준수하고, 2025년 주주 제안을 철회하며, 이사회 권장 사항에 따라 투표할 것을 약속했습니다.
따라서 두 기금은 2024년 12월 31일로 종료된 분기 측정 기간에 대한 이전에 발표된 매입 제안을 취소하고 즉시 기존의 할인 관리 프로그램을 종료합니다.
BlackRock a annoncé des offres de rachat significatives pour deux de ses fonds de fiducie. Le BlackRock Innovation and Growth Term Trust (BIGZ) rachètera 50 % de ses actions en circulation, tandis que le BlackRock Health Sciences Term Trust (BMEZ) en rachètera 40 %. Les deux offres seront tarifées à 99,5 % de la valeur nette d'actif par action ordinaire de chaque fonds.
Ces offres de rachat font partie d'accords avec Saba Capital Management qui resteront en vigueur jusqu'à la saison des procurations 2027 pour chaque fonds. Selon ces accords, Saba a accepté de respecter certaines clauses de non-concurrence, de retirer sa proposition d'actionnaire de 2025 et de voter conformément aux recommandations du Conseil.
En conséquence, les deux fonds annuleront leurs offres de rachat précédemment annoncées pour la période de mesure trimestrielle se terminant le 31 décembre 2024, et mettront immédiatement fin à leurs programmes de gestion des remises en cours.
BlackRock hat bedeutende Rückkaufangebote für zwei seiner Trustfonds bekannt gegeben. Der BlackRock Innovation and Growth Term Trust (BIGZ) wird 50% seiner ausstehenden Anteile zurückkaufen, während der BlackRock Health Sciences Term Trust (BMEZ) 40% seiner ausstehenden Anteile zurückkaufen wird. Beide Angebote werden zu 99,5% des Nettowertes der einzelnen Fonds pro Stammaktie bewertet.
Diese Rückkaufangebote sind Teil von Vereinbarungen mit Saba Capital Management, die bis zur Hauptversammlungssaison 2027 für jeden Fonds gültig bleiben. Unter diesen Vereinbarungen hat sich Saba verpflichtet, bestimmte Standstill-Klauseln einzuhalten, seinen Aktionärsvorschlag für 2025 zurückzuziehen und gemäß den Empfehlungen des Vorstands zu stimmen.
Infolgedessen werden beide Fonds ihre zuvor angekündigten Rückkaufangebote für den zum 31. Dezember 2024 endenden vierteljährlichen Bewertungszeitraum stornieren und ihre bestehenden Discount-Management-Programme mit sofortiger Wirkung einstellen.
- Large-scale share repurchase program with 50% of BIGZ outstanding shares to be bought back
- Tender offer price set at 99.5% of NAV, providing shareholders with a near-NAV exit opportunity
- Three-year agreement with Saba Capital ensures corporate stability through 2027
- Cancellation of previously announced quarterly tender offer for December 2024
- Termination of existing discount management program
- 0.5% discount to NAV in tender offer represents a small loss for selling shareholders
Insights
This tender offer announcement represents a significant capital return event for BIGZ shareholders. The 50% share repurchase at 99.5% of NAV is a substantial liquidity event that will likely narrow the fund's trading discount. The agreement with activist investor Saba Capital adds another layer of significance, as it provides a three-year standstill period and ensures board-aligned voting.
The mechanics of this tender offer differ from the cancelled quarterly measurement program in both scale and certainty. While the previous program was conditional on discount thresholds, this new offer provides a guaranteed opportunity for shareholders to tender half their holdings at near-NAV prices. The
The immediate termination of the previous discount management program suggests BlackRock is pivoting to a more aggressive capital return strategy. This could help address persistent NAV discounts that have plagued closed-end funds in the rising rate environment.
The strategic implications of this tender offer extend beyond immediate price action. The deal with Saba Capital effectively neutralizes a major activist threat while providing a clear catalyst for discount compression. For context, closed-end funds typically trade at discounts to NAV and activist investors often target funds with wide discounts to force liquidity events.
Three key elements make this particularly impactful:
- The scale of the tender (50% of shares) is unusually large for a closed-end fund
- The pricing at 99.5% of NAV is highly attractive compared to typical market discounts
- The three-year standstill agreement provides operational stability
Each Tender Offer is being proposed pursuant to an agreement among the applicable Fund, BlackRock and Saba Capital Management, L.P. (“Saba”) (each, an “Agreement”) that will expire after each Fund’s 2027 proxy season. During the three-year effective period of each Agreement, Saba has agreed to (1) be bound by the terms of the Agreement, including certain customary standstill covenants, (2) withdraw the shareholder proposal previously submitted for consideration at the Fund’s 2025 annual meeting of shareholders, and (3) vote the Fund shares held by Saba on proposals submitted to shareholders in accordance with the recommendation of the Fund’s Board.
In connection with the approval of the applicable Tender Offer, each Board has approved (i) the cancellation of the applicable Fund’s tender offer for the quarterly measurement period ended December 31, 2024, which was announced on January 2, 2025, and (ii) the termination of the applicable Fund’s previously announced discount management program, effective immediately.
IMPORTANT NOTICE
This press release is for informational purposes only and shall not constitute an offer or a solicitation to buy any common shares. Any offer to purchase Fund common shares will be made pursuant to an offer on Schedule TO. COMMON SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER MATERIALS, INCLUDING THE OFFER TO PURCHASE AND ANY SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE TENDER OFFER, AS THEY MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, WHEN THEY ARE FILED AND BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF COMMON SHARES SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Common shareholders may obtain a free copy of any of these statements and other documents filed with the
About BlackRock
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BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.
Forward-Looking Statements
This press release, and other statements that BlackRock or the Funds may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Funds or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to the Funds, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Funds or a Fund’s net asset value; (2) the relative and absolute investment performance of the Funds and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, and regulatory, supervisory or enforcement actions of government agencies relating to the Funds or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
Annual and Semi-Annual Reports and other regulatory filings of the Funds with the SEC are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock’s website is not a part of this press release.
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Source: BlackRock Closed-End Funds
FAQ
What percentage of shares will BIGZ repurchase in its new tender offer?
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What happens to BIGZ's previously announced December 2024 tender offer?
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