BlackRock Health Sciences Term Trust (BMEZ) Commences Tender Offer for up to 40% of outstanding common shares
BlackRock Health Sciences Term Trust (BMEZ) has initiated a significant tender offer to repurchase up to 40% of its outstanding common shares. The shares will be repurchased at 99.5% of the Fund's Net Asset Value (NAV) per share, as determined on the pricing date following the expiration of the tender offer.
If shareholders tender more than 40% of outstanding shares, the Fund will purchase shares on a pro rata basis, meaning there's no guarantee all tendered shares will be purchased. Payments for accepted shares are expected to be processed within approximately five business days after the expiration date.
BlackRock Health Sciences Term Trust (BMEZ) ha avviato un'importante offerta di acquisto per riacquistare fino al 40% delle sue azioni ordinarie in circolazione. Le azioni saranno riacquistate a 99,5% del Valore Netto degli Attivi (NAV) per azione, come determinato nella data di prezzo successiva alla scadenza dell'offerta di acquisto.
Se gli azionisti presentano più del 40% delle azioni in circolazione, il Fondo acquisterà le azioni su base pro rata, il che significa che non c'è garanzia che tutte le azioni presentate saranno acquistate. I pagamenti per le azioni accettate dovrebbero essere elaborati entro circa cinque giorni lavorativi dopo la data di scadenza.
BlackRock Health Sciences Term Trust (BMEZ) ha iniciado una oferta pública de compra significativa para recomprar hasta el 40% de sus acciones ordinarias en circulación. Las acciones se recomprarán a 99,5% del Valor Neto de los Activos (NAV) por acción, según se determine en la fecha de fijación de precios tras la expiración de la oferta.
Si los accionistas presentan más del 40% de las acciones en circulación, el Fondo comprará las acciones de manera proporcional, lo que significa que no hay garantía de que todas las acciones presentadas sean compradas. Se espera que los pagos por las acciones aceptadas se procesen dentro de aproximadamente cinco días hábiles después de la fecha de expiración.
블랙록 헬스 사이언스 텀 트러스트 (BMEZ)가 최대 40%의 보통주를 재매입하기 위한 중요한 입찰 제안을 시작했습니다. 주식은 펀드의 순자산 가치(NAV)의 99.5%로 재매입될 예정이며, 이는 입찰 제안 만료 후 가격 책정 날짜에 따라 결정됩니다.
주주가 발행된 주식의 40% 이상을 입찰할 경우, 펀드는 비례 배분 방식으로 주식을 구매하며, 이는 모든 입찰된 주식이 구매된다는 보장이 없음을 의미합니다. 수락된 주식에 대한 지급은 만료일 이후 약 5영업일 이내에 처리될 것으로 예상됩니다.
BlackRock Health Sciences Term Trust (BMEZ) a lancé une offre publique de rachat significative pour racheter jusqu'à 40% de ses actions ordinaires en circulation. Les actions seront rachetées à 99,5% de la Valeur Nette des Actifs (NAV) par action, comme déterminé à la date de tarification suivant l'expiration de l'offre.
Si les actionnaires proposent plus de 40% des actions en circulation, le Fonds achètera les actions sur une base pro rata, ce qui signifie qu'il n'y a aucune garantie que toutes les actions proposées seront achetées. Les paiements pour les actions acceptées devraient être traités dans un délai d'environ cinq jours ouvrables après la date d'expiration.
BlackRock Health Sciences Term Trust (BMEZ) hat ein bedeutendes Übernahmeangebot gestartet, um bis zu 40% seiner ausstehenden Stammaktien zurückzukaufen. Die Aktien werden zu 99,5% des Nettoinventarwerts (NAV) pro Aktie zurückgekauft, wie am Preisfestlegungstag nach Ablauf des Übernahmeangebots bestimmt wird.
Wenn Aktionäre mehr als 40% der ausstehenden Aktien anbieten, kauft der Fonds die Aktien anteilig, was bedeutet, dass es keine Garantie gibt, dass alle angebotenen Aktien gekauft werden. Die Zahlungen für akzeptierte Aktien sollen voraussichtlich innerhalb von etwa fünf Geschäftstagen nach dem Ablaufdatum bearbeitet werden.
- Large-scale share repurchase program of 40% of outstanding shares indicates strong commitment to shareholder value
- Tender offer price at 99.5% of NAV represents minimal discount to fair value
- No guarantee all tendered shares will be accepted if oversubscribed
- 0.5% discount to NAV represents a small loss for selling shareholders
Insights
BlackRock's tender offer for 40% of BMEZ's outstanding shares represents a significant capital action with positive implications for current shareholders. The pricing at 99.5% of NAV is exceptionally favorable compared to typical market conditions where closed-end funds often trade at substantial discounts to their underlying asset value.
This tender offer effectively provides shareholders with two valuable options: they can either maintain exposure to the health sciences sector through the fund or liquidate a portion of their holdings at near-NAV pricing. The pro rata mechanism indicates BlackRock anticipates high participation, suggesting shareholders should consider tendering their full eligible amount if they wish to participate, as actual repurchases may be scaled back proportionally.
For shareholders who don't participate, this large-scale repurchase could potentially benefit the fund's market price by decreasing supply and possibly narrowing any existing discount to NAV. However, the reduced asset base might marginally increase the expense ratio for remaining shareholders.
As a term trust, BMEZ has a predetermined liquidation date, and this tender offer aligns with the fund's structural commitment to provide liquidity events. The minimal discount applied (only 0.5%) demonstrates shareholder-friendly management and represents excellent value compared to typical secondary market transactions.
The Fund’s Board of Trustees have authorized the Tender Offer with the anticipated commencement, expiration and pricing dates outlined below:
Commencement Date |
Friday, March 21, 2025 |
Expiration Date and Time |
Thursday, April 17, 2025 at 5:00 p.m. Eastern Time, unless otherwise extended |
Pricing Date |
Monday, April 21, 2025 |
Shares of the Fund will be repurchased at a price equal to
The terms and conditions of the Fund’s tender offer are set forth in an Offer to Purchase, a related Letter of Transmittal, and related documents, which will be distributed to the Fund's common shareholders and filed with the Securities and Exchange Commission (the “SEC”).
IMPORTANT NOTICE
This press release is for informational purposes only and is not a recommendation, an offer to purchase or a solicitation of an offer to sell any securities of the Fund and the above statements are not intended to constitute an offer to participate in any tender offer. 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 SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the Fund.
About BlackRock
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With respect to the Fund, 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 Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund 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 Fund 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 Fund 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 Fund. 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 is BMEZ offering to repurchase in the tender offer?
At what price will BMEZ repurchase shares in the tender offer?
How long will BMEZ shareholders wait for payment after tendering their shares?
What happens if more than 40% of BMEZ shares are tendered?
