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Update: RiverNorth/DoubleLine Strategic Opportunity Fund, Inc., Announces Non-Transferable Rights Offering for Common and Preferred Stock

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RiverNorth/DoubleLine Strategic Opportunity Fund (NYSE: OPP) has announced a non-transferable rights offering for common and preferred stock. Record Date Stockholders as of November 5, 2024, will receive one right for each common share held. For every six rights, holders can purchase two new common shares and one new share of 6.00% Series C Preferred Stock. The subscription price for common shares will be at least 90% of NAV or 95% of market price, whichever is higher, while preferred shares are priced at $10. The offering expires on November 25, 2024. The Fund had approximately $341 million in total managed assets as of September 30, 2024.

Il RiverNorth/DoubleLine Strategic Opportunity Fund (NYSE: OPP) ha annunciato un'offerta di diritti non trasferibili per azioni ordinarie e privilegiate. Gli azionisti alla data di registrazione del 5 novembre 2024, riceveranno un diritto per ogni azione ordinaria detenuta. Per ogni sei diritti, i titolari possono acquistare due nuove azioni ordinarie e una nuova azione di azioni privilegiate di serie C al 6,00%. Il prezzo di sottoscrizione per le azioni ordinarie sarà almeno del 90% del valore patrimoniale netto (NAV) o del 95% del prezzo di mercato, a seconda di quale sia il più alto, mentre le azioni privilegiate sono fissate a $10. L'offerta scade il 25 novembre 2024. Il fondo aveva circa $341 milioni di attivi gestiti totali al 30 settembre 2024.

El RiverNorth/DoubleLine Strategic Opportunity Fund (NYSE: OPP) ha anunciado una oferta de derechos no transferibles para acciones comunes y preferentes. Los accionistas en la fecha de registro del 5 de noviembre de 2024, recibirán un derecho por cada acción común que posean. Por cada seis derechos, los titulares pueden comprar dos nuevas acciones comunes y una nueva acción de acciones preferentes Serie C al 6.00%. El precio de suscripción para las acciones comunes será al menos el 90% del NAV o el 95% del precio de mercado, el que sea más alto, mientras que las acciones preferentes están valoradas en $10. La oferta expira el 25 de noviembre de 2024. El fondo tenía aproximadamente $341 millones en activos totales administrados al 30 de septiembre de 2024.

RiverNorth/DoubleLine 전략적 기회 펀드(NYSE: OPP)는 보통주 및 우선주에 대한 양도 불가능한 권리 공모를 발표했습니다. 기록 날짜 주주인 2024년 11월 5일 기준으로 보유한 보통주마다 한 개의 권리를 받게 됩니다. 여섯 개의 권리당 보유자는 두 개의 신규 보통주와 하나의 6.00% C시리즈 우선주를 구매할 수 있습니다. 보통주의 청약 가격은 NAV의 90% 또는 시장 가격의 95% 중 더 높은 쪽으로 결정되며, 우선주는 $10로 설정됩니다. 이번 공모는 2024년 11월 25일에 만료됩니다. 펀드는 2024년 9월 30일 기준으로 총 관리 자산이 약 $341백만이었습니다.

Le RiverNorth/DoubleLine Strategic Opportunity Fund (NYSE: OPP) a annoncé une offre de droits non transférables sur des actions ordinaires et préférentielles. Les actionnaires à la date d'enregistrement du 5 novembre 2024 recevront un droit pour chaque action ordinaire détenue. Pour chaque six droits, les détenteurs peuvent acheter deux nouvelles actions ordinaires et une nouvelle action de actions privilégiées de série C à 6,00%. Le prix de souscription pour les actions ordinaires sera d'au moins 90% de la valeur liquidative (NAV) ou 95% du prix du marché, selon le montant le plus élevé, tandis que les actions préférentielles sont fixées à 10 $. L'offre expire le 25 novembre 2024. Le fonds avait environ $341 millions d'actifs totaux gérés au 30 septembre 2024.

Der RiverNorth/DoubleLine Strategic Opportunity Fund (NYSE: OPP) hat ein nicht übertragbares Bezugsangebot für Stamm- und Vorzugsaktien angekündigt. Aktionäre zum Stichtag am 5. November 2024, erhalten ein Bezugsrecht für jede gehaltene Stammaktie. Für jeweils sechs Bezugsrechte können Inhaber zwei neue Stammaktien und eine neue Aktie der 6,00% Serie C-Vorzugsaktien erwerben. Der Bezugspreis für Stammaktien beträgt mindestens 90% des NAV oder 95% des Marktpreises, je nachdem, welcher Wert höher ist, während die Vorzugsaktien zu $10 bewertet werden. Das Angebot läuft am 25. November 2024 ab. Der Fonds verwaltete zum 30. September 2024 insgesamt etwa $341 Millionen an verwaltetem Vermögen.

Positive
  • Offering provides existing shareholders opportunity to increase their position at a potential discount
  • New preferred stock offers 6.00% yield with 3-year term
  • Fund maintains substantial managed assets of $341 million
Negative
  • New shares will not be eligible for October and November 2024 distributions
  • Potential dilution of existing shareholders who don't participate
  • Rights are non-transferable, limiting flexibility for shareholders

Insights

This rights offering represents a significant capital raising event for OPP. The fund is offering existing shareholders the opportunity to purchase additional common shares at a 90% NAV floor or 95% market price (whichever is higher), plus new preferred shares at $10 per share with a 6% yield. For every 6 rights, holders can buy 2 common shares and 1 preferred share.

The structure suggests a balanced approach to raising capital while providing existing shareholders preferential access. The 6% yield on the preferred shares appears attractive in the current market environment. However, investors should note that new shares won't be eligible for October/November distributions and the offering could lead to some dilution of existing holdings if not all shareholders participate.

WEST PALM BEACH, Fla.--(BUSINESS WIRE)-- As announced in a press release dated October 21, 2024 (the “Prior Announcement”), the Board of Directors of the RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”) (NYSE: OPP) has authorized and set the terms of an offering to the Fund’s stockholders of inseparable non-transferable rights to purchase additional shares of common stock and newly issued 6.00%, 3-Year Term, Series C Term Preferred Stock (the “Series C Preferred Stock”) of the Fund.

Details of the Fund’s offering can be found in the prospectus supplement, dated October 30, 2024. The prospectus supplement can be found on the Securities and Exchange Commission’s (“SEC”) Edgar website at: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001678130/000139834424019690/fp0090848-1_424b2ixbrl.htm.

Please remember that the record date for shareholders to be eligible to participate in the offer is November 5, 2024.

For further information please contact CEF@rivernorth.com or call 800-646-0148.

As detailed in the Prior Announcement, in this offering, the Fund will issue non-transferable subscription rights (“Rights”) to its stockholders of record as of November 5, 2024 (the “Record Date” and such stockholders “Record Date Stockholders”) allowing the holder to subscribe for new shares of common stock and Series C Preferred Stock of the Fund (the “Primary Subscription”). Record Date Stockholders will receive one Right for each share of common stock held on the Record Date. For every six Rights held, a holder of Rights may buy two new shares of common stock and one new share of Series C Preferred Stock of the Fund. The number of Rights to be issued to a Record Date Stockholder will be rounded up to the nearest number of Rights evenly divisible by six. Fractional shares will not be issued upon the exercise of the Rights. Accordingly, new common and preferred shares may be purchased only pursuant to the exercise of Rights in integral multiples of six.

The shares of common stock issued as a result of the rights offering will not be record date shares for the Fund’s monthly distributions to be paid in October or November 2024 and therefore will not be entitled to those distributions. The shares of preferred stock issued will not be record dates shares for the preferred distributions to be paid in November 2024.

Record Date Stockholders who fully exercise their Rights will be entitled to subscribe for additional shares of common stock and Series C Preferred Stock (“Over-Subscription Shares”), subject to the limitations set forth in the prospectus supplement. The Over-Subscription Shares will be allocated pro rata to stockholders who over-subscribe based on the number of Rights originally issued to them. The Fund may increase the number of shares of common stock and Series C Preferred Stock subject to subscription by up to 50% of the shares available pursuant to the Primary Subscription. The Rights are non-transferable and, therefore, may not be purchased or sold. The shares of common stock and Series C Preferred Stock issued pursuant to the rights offering will be listed on the New York Stock Exchange (“NYSE”) under the tickers: OPP, and OPPPRC, respectively.

The subscription price per share of common stock will be determined based upon a formula that will be no less than equal to 90% of the reported net asset value or 95% of the market price per share of common stock, whichever is higher on the Expiration Date (as defined below). The market price per share of common stock will be determined based on the average of the last reported sales price of a share of common stock on the NYSE for the five trading days preceding (and not including) the Expiration Date. The subscription price of Series C Preferred Stock will be $10 per share. The subscription period will expire at 5:00 p.m., Eastern Time, on November 25, 2024, unless extended by the Board (the “Expiration Date”).

The rights offering will be made pursuant to the Fund’s currently effective shelf registration statement on file with the SEC, which continues to be effective through November 10, 2024. While the Fund’s currently effective shelf will technically expire during the rights offering, the Fund has filed a replacement shelf registration statement, which will extend the Fund’s ability to utilize the existing shelf through the completion of the rights offering. The rights offering will be made only by means of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus will be filed with the SEC but has not been filed as of the date of this release. The Company expects to mail subscription certificates evidencing the subscription rights and a copy of the prospectus supplement and accompanying prospectus for the rights offering shortly following the Record Date. These securities described in this release may not be sold nor may offers to purchase be accepted prior to the time the prospectus supplement and accompanying prospectus are filed with the SEC.

This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy.

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

The investment objective of the Fund is current income and overall total return. The Fund had approximately $341 million of total managed assets1 and 23.0 million shares of common stock outstanding as of September 30, 2024.

The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value.

Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing in the shares of common stock, you should consider the risks as well as the other information in the prospectus.

Past performance is no guarantee of future results.

Investors should consider the Fund's investment objective, risks, charges, and expenses carefully before investing. The prospectus should be read carefully before investing. For more information, please read the prospectus, call your financial professional or call 844.569.4750.

RiverNorth Capital Management, LLC

RiverNorth is an investment management firm founded in 2000 that specializes in opportunistic strategies in niche markets where the potential to exploit inefficiencies is greatest. RiverNorth is the manager to multiple registered and private funds.

1Managed Assets includes assets attributable to leverage and investments in affiliated funds.

Not FDIC Insured | May Lose Value | No Bank Guarantee
ALPS Distributors, Inc. is the FINRA Member Firm.
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC.
©2000-2024 RiverNorth Capital Management, LLC. All rights reserved.
OPP000140

CEF@rivernorth.com

800-646-0148.

Source: RiverNorth Capital Management, LLC

FAQ

What is the record date for OPP's rights offering in 2024?

The record date for OPP's rights offering is November 5, 2024.

What is the subscription ratio for OPP's 2024 rights offering?

For every six rights held, shareholders can buy two new common shares and one new Series C Preferred Share.

What is the yield on OPP's new Series C Preferred Stock?

The new Series C Preferred Stock offers a 6.00% yield with a 3-year term.

When does OPP's 2024 rights offering expire?

The rights offering expires at 5:00 p.m. Eastern Time on November 25, 2024, unless extended.

RiverNorth/DoubleLine Strategic Opportunity Fund, Inc.

NYSE:OPP

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