Virtus Convertible & Income Fund II Postpones Record and Ex-Dividend Dates for Monthly Distribution on Common Shares

Rhea-AI Summary

Virtus Convertible & Income Fund II (NCZ) has postponed the record and ex-dividend dates for its monthly distribution of $0.0375 per common share, originally set for November 1, 2022. This delay is due to a decline in the values of the Fund's portfolio securities, causing the Fund's asset coverage ratio to fall below the 200% minimum requirement outlined in the Investment Company Act of 1940. The Fund aims to resume distributions once compliance is achieved, and it will provide updates regarding record and payment dates when available.

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• Postponement of dividend distribution due to asset coverage ratio falling below mandated 200% guideline.

HARTFORD, Conn., Oct. 12, 2022 /PRNewswire/ -- Virtus Convertible & Income Fund II (NYSE: NCZ), a closed-end fund, today announced that it has postponed the record and ex-dividend dates for payment of its monthly distribution of $0.0375 per common share that was scheduled to be paid on November 1, 2022 to shareholders of record on October 13, 2022.

As previously announced, the declaration of the Fund's monthly distribution of $0.0375 per common share that was scheduled to be declared on October 3, 2022 and paid on November 1, 2022 was delayed after recent market dislocations caused the values of the Fund's portfolio securities to decline and, as a result, the Fund's asset coverage ratio for total leverage as of September 30, as calculated in accordance with the Investment Company Act of 1940, was below the 200% minimum asset coverage guideline. Compliance with the asset coverage ratio is required by the Fund's governing documents for declaration or payment of the monthly distribution. As a result, the Fund is not authorized to declare or pay its monthly distribution until the coverage ratio is in compliance.

The Fund still intends to resume declaration and payment of its monthly common share distributions once its coverage ratio is in compliance. If the Fund is unable to declare a distribution sufficiently in advance of November 1 to set the record date and arrange payment, the payment date will be postponed as well. The Fund will provide information regarding record and payable dates for delayed distributions when available.

About the Fund

Virtus Convertible & Income Fund II has 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 of the fund and Voya Investment Management manages the fund in a subadvisory capacity. For more information, 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 end of this press release.

 

 

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SOURCE Virtus Funds

FAQ

What is the current dividend amount for NCZ?

The current dividend amount for NCZ is $0.0375 per common share.

Why was the dividend payment for NCZ postponed?

The dividend payment for NCZ was postponed because the Fund's asset coverage ratio fell below the 200% minimum requirement.

When was the NCZ dividend initially scheduled to be paid?

The NCZ dividend was initially scheduled to be paid on November 1, 2022.

What affects NCZ's ability to pay dividends?

NCZ's ability to pay dividends is affected by its asset coverage ratio, which must be at least 200% as per regulatory guidelines.

How will NCZ inform investors about future dividend payments?

NCZ will provide updates regarding record and payable dates for delayed distributions when available.