Virtus Convertible & Income Fund, Virtus Convertible & Income Fund II Commence Tender Offers for Outstanding Auction Rate Preferred Shares

Rhea-AI Summary

On October 3, 2022, Virtus Convertible & Income Fund (NCV) and Virtus Convertible & Income Fund II (NCZ) announced voluntary tender offers for up to 100% of their outstanding auction rate preferred shares (ARPS). The tender price is set at 97.95% of the ARPS liquidation preference of $25,000 per share, totaling $24,487.50 per share, plus any unpaid dividends. The offer commenced at 12:01 a.m. Eastern Time and will expire on November 1, 2022. The funds will file a tender offer statement with the SEC, and more details will be made available to ARPS holders.

Positive

• Commencement of tender offers for up to 100% of outstanding auction rate preferred shares.
• Tender price set at 97.95% of liquidation preference, potentially attractive to ARPS holders.

Negative

• Tender offers may indicate underlying liquidity issues or need for capital restructuring.

HARTFORD, Conn., Oct. 3, 2022 /PRNewswire/ -- Virtus Convertible & Income Fund (NCV) and Virtus Convertible & Income Fund II (NCZ) (each, a "Fund" and, together, the "Funds"), announced that each Fund today commenced a voluntary tender offer (each, a "Tender Offer" and, together, the "Tender Offers") for up to 100% of its outstanding auction rate preferred shares ("ARPS"), at a price equal to 97.95% of the ARPS per share liquidation preference of $25,000 per share (or $24,487.50 per share), plus any unpaid ARPS dividends accrued through the expiration date of each Tender Offer.

The Tender Offers commenced today at 12:01 a.m. Eastern Time and will expire at 11:59 p.m. Eastern Time on November 1, 2022, unless otherwise extended. It is expected that the payment of the tender offer proceeds will be made as soon as practicable after the expiration date of the Tender Offers, or such later date to which the Tender Offers may be extended.

This announcement is not a recommendation, an offer to purchase, or a solicitation of an offer to sell the ARPS of the Funds. The Funds will file with the Securities and Exchange Commission ("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 "Tender Offer Documents"). The Tender Offer Documents were mailed or distributed electronically to ARPS holders starting today. These and other filed documents also will be available to ARPS holders free of charge on the SEC's website and on each Fund's page in the closed-end fund section of virtus.com. ARPS holders may obtain further information regarding the Tender Offers from Georgeson LLC, the Funds' Depositary Agent and Information Agent for the Tender Offers, by calling (866) 785-7395 for NCV and (866) 857-2624 for NCZ.  

About the Fund

Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II each have an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, Inc. is the investment adviser and Voya Investment Management is the subadviser to the Funds. For more information on the Funds, contact Shareholder Services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the closed-end funds section of virtus.com.

Fund Risks

An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about the Fund's investment objective and risks, please see the Fund's annual report. A copy of the Fund's most recent annual report may be obtained free of charge by contacting Shareholder Services as set forth at the bottom of this press release.

 

 

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SOURCE Virtus Funds

FAQ

What is the purpose of the tender offers announced by NCV and NCZ?

The tender offers aim to repurchase up to 100% of the outstanding auction rate preferred shares at a specified price.

When do the tender offers for NCV and NCZ expire?

The tender offers will expire at 11:59 p.m. Eastern Time on November 1, 2022.

What is the offered price for the auction rate preferred shares in the tender offers?

The offered price is 97.95% of the ARPS liquidation preference of $25,000, amounting to $24,487.50 per share.

Where can ARPS holders find more information about the tender offers?

More information can be found in the tender offer statement filed with the SEC and through the Funds' Depositary Agent.

What are the potential risks associated with the tender offers for NCV and NCZ?

The tender offers may suggest liquidity issues or capital restructuring needs, which could impact investor confidence.