The Herzfeld Caribbean Basin Fund, Inc. to Conduct a Tender Offer for up to 5% of Outstanding Common Shares
Thomas J. Herzfeld Advisors, Inc. has announced that The Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) will commence a Tender Offer on October 14, 2024. This offer is part of the Fund's ongoing plan to address its trading price discount to net asset value (NAV) per share. The plan, initially announced in May 2019 and extended to June 30, 2025, includes a Self-Tender Policy.
Under this policy, the Fund will offer to purchase up to 5% of its outstanding shares at 97.5% of NAV if the average discount was greater than 10% for the previous fiscal year. The formal offer and detailed terms will be announced soon. Shareholders will be notified according to SEC requirements and should review the offer documents carefully when available.
Thomas J. Herzfeld Advisors, Inc. ha annunciato che Il Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) inizierà un Offerta Pubblica di Acquisto il 14 ottobre 2024. Questa offerta fa parte del piano continuo del Fondo per affrontare il suo sconto sul prezzo di mercato rispetto al valore patrimoniale netto (NAV) per azione. Il piano, annunciato inizialmente a maggio 2019 e prorogato fino al 30 giugno 2025, include una Politica di Auto-Acquisto.
Secondo questa politica, il Fondo offrirà di acquistare fino al 5% delle sue azioni in circolazione a 97,5% del NAV se lo sconto medio è stato superiore al 10% per l'anno fiscale precedente. L'offerta formale e i termini dettagliati saranno annunciati a breve. Gli azionisti saranno informati secondo i requisiti della SEC e dovrebbero esaminare attentamente i documenti dell'offerta quando saranno disponibili.
Thomas J. Herzfeld Advisors, Inc. ha anunciado que El Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) comenzará una Oferta Pública de Adquisición el 14 de octubre de 2024. Esta oferta es parte del plan continuo del Fondo para abordar su descuento en el precio de negociación en relación con el valor neto de los activos (NAV) por acción. El plan, anunciado inicialmente en mayo de 2019 y ampliado hasta el 30 de junio de 2025, incluye una Política de Auto-Adquisición.
Bajo esta política, el Fondo ofrecerá comprar hasta el 5% de sus acciones en circulación a 97.5% del NAV si el descuento promedio fue superior al 10% para el año fiscal anterior. La oferta formal y los términos detallados se anunciarán pronto. Los accionistas serán notificados de acuerdo con los requisitos de la SEC y deben revisar los documentos de la oferta cuidadosamente cuando estén disponibles.
Thomas J. Herzfeld Advisors, Inc.는 Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA)가 2024년 10월 14일에 청구권 제안을 시작한다고 발표했습니다. 이 제안은 자산 순 가치(NAV)에 대한 거래 가격 할인을 해결하기 위한 기금의 지속적인 계획의 일환입니다. 이 계획은 2019년 5월에 처음 발표되었고 2025년 6월 30일까지 연장되었으며 자기 청구 정책을 포함합니다.
이 정책에 따라 기금은 지난해 회계 연도 동안 평균 할인율이 10%를 초과한 경우 FIT 5%의 보유 주식에 대해 NAV의 97.5%에 해당하는 금액으로 구매할 것을 제안합니다. 공식 제안 및 상세한 조건은 곧 발표될 것입니다. 주주들은 SEC 요건에 따라 통보받을 것이며, 가능한 경우 제안 문서를 주의 깊게 검토해야 합니다.
Thomas J. Herzfeld Advisors, Inc. a annoncé que Le Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) lancera une Offre de Rachat le 14 octobre 2024. Cette offre fait partie du plan continu du Fonds pour s'attaquer à son écart de prix par rapport à la valeur liquidative (NAV) par action. Le plan, initialement annoncé en mai 2019 et prolongé jusqu'au 30 juin 2025, comprend une Politique de Rachat.
Selon cette politique, le Fonds proposera d'acheter jusqu'à 5% de ses actions en circulation à 97,5% du NAV si l'écart moyen était supérieur à 10% pour l'exercice précédent. L'offre formelle et les termes détaillés seront bientôt annoncés. Les actionnaires seront informés conformément aux exigences de la SEC et devraient examiner attentivement les documents d'offre dès qu'ils seront disponibles.
Thomas J. Herzfeld Advisors, Inc. hat angekündigt, dass Der Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) am 14. Oktober 2024 ein Übernahmeangebot starten wird. Dieses Angebot ist Teil des fortlaufenden Plans des Fonds, sein Handelsdisagio zum Nettovermögen (NAV) pro Aktie zu adressieren. Der Plan, der erstmals im Mai 2019 angekündigt und bis zum 30. Juni 2025 verlängert wurde, umfasst eine Eigentender-Politik.
Im Rahmen dieser Politik wird der Fonds anbieten, bis zu 5% seiner ausstehenden Aktien zu 97,5% des NAV zu kaufen, wenn der durchschnittliche Rabatt im vergangenen Geschäftsjahr mehr als 10% betrug. Das formelle Angebot und die detaillierten Bedingungen werden in Kürze bekannt gegeben. Die Aktionäre werden gemäß den Anforderungen der SEC benachrichtigt und sollten die Angebotsunterlagen sorgfältig überprüfen, sobald sie verfügbar sind.
- The Fund is taking proactive measures to address the trading price discount to NAV
- The Tender Offer provides an opportunity for shareholders to sell shares at a price closer to NAV
- The Fund is following through on its previously announced plan to address the discount
- The Tender Offer is to only 5% of outstanding shares
- Shares will be repurchased at a 2.5% discount to NAV
- The Tender Offer may not fully eliminate the trading price discount to NAV
Insights
The Herzfeld Caribbean Basin Fund's (CUBA) announcement of a tender offer for up to
Key points to consider:
- The tender offer could potentially provide a short-term boost to the stock price as it creates temporary demand.
- It may help reduce the discount to NAV, which has been persistently above
10% . - However, the impact on long-term value creation is questionable, as it doesn't address underlying performance issues.
- With a small market cap of
$35,186,668 , the5% buyback is relatively modest in absolute terms.
Investors should weigh the potential short-term benefits against the fund's overall strategy and performance in the Caribbean Basin market. While the tender offer may provide a temporary exit opportunity at a favorable price, it doesn't fundamentally change the fund's prospects or market positioning.
MIAMI BEACH, Fla., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment advisor, today announced its intention to commence a Tender Offer by The Herzfeld Caribbean Basin Fund, Inc. (Nasdaq: CUBA) (the “Fund”) on October 14, 2024, in accordance with the Fund’s ongoing plan to address the Fund’s trading price discount to its net asset value (“NAV”) per share that was previously announced on May 31, 2019, and subsequently modified and extended to June 30, 2025 by the Fund’s Board of Directors as announced in May 2024 (the “Plan”).
Under the modified Self-Tender Policy component of the Plan, the Fund has undertaken to commence a tender offer by October 31, 2024 for up to
The formal offer and detailed terms of the tender offer will be announced in the coming days.
Tender Offer Statement
The above statements are not intended to constitute an offer to participate in any tender offer. Shareholders will be notified of the terms of the tender offer in accordance with the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, either by publication or mailing or both. The tender offer will be made by an offer to purchase, a related letter of transmittal, and other documents to be filed with the SEC. Shareholders of the Fund should read the offer to purchase and tender offer statement and related exhibits when those documents are filed and become available, as they will contain important information about the tender offer. These and other filed documents will be available to investors for free both at the website of the SEC (www.sec.gov) and from the Fund (www.herzfeld.com/cuba).
About Thomas J. Herzfeld Advisors, Inc.
Thomas J. Herzfeld Advisors, Inc., founded in 1984, is an SEC registered investment advisor, specializing in investment analysis and account management in closed-end funds. The Firm also specializes in investment in the Caribbean Basin. The HERZFELD/CUBA division of Thomas J. Herzfeld Advisors, Inc. serves as the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. a publicly traded closed-end fund (NASDAQ: CUBA).
More information about the advisor can be found at www.herzfeld.com.
Past performance is no guarantee of future performance. An investment in the Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price which is more or less than the original purchase price or the net asset value. There can be no assurance that any Share repurchases will reduce or eliminate the discount of the Fund’s market price to the Fund’s net asset value per share. An investor should carefully consider the Fund’s investment objective, risks, charges and expenses. Please read the Fund’s disclosure documents before investing.
Forward-Looking Statements
This press release, and other statements that Thomas J. Herzfeld Advisors, Inc. (“TJHA”) or the Fund may make, may contain forward looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or TJHA’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. TJHA and the Fund caution 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 TJHA and the Fund assume no duty to and do 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 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, particularly with respect to Cuba and other Caribbean Basin countries, 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, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or TJHA, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or TJHA or the Fund; (9) TJHA’s and the Fund’s ability to attract and retain highly talented professionals; (10) the impact of TJHA 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 TJHA’s website at www.herzfeld.com/cuba, and may discuss these or other factors that affect the Fund. The information contained on TJHA’s website is not a part of this press release.
Contact:
Tom Morgan
Chief Compliance Officer
Thomas J. Herzfeld Advisors, Inc.
1-305-777-1660
FAQ
When will The Herzfeld Caribbean Basin Fund (CUBA) commence its Tender Offer?
What percentage of outstanding shares will CUBA's Tender Offer include?
At what price will CUBA repurchase shares in the Tender Offer?
What is the purpose of CUBA's Tender Offer?
