Royce Global Value Trust, Inc. Announces Conditional Tender Offer

Rhea-AI Summary

Royce Global Value Trust (NYSE: RGT) announced a conditional cash tender offer to repurchase up to 40% of its outstanding shares at the net asset value per share, contingent upon stockholder approval of a new advisory agreement with Royce Investment Partners. A Special Meeting for stockholders is scheduled for October 30, 2020. If more shares are tendered than the limit, purchases will be made on a pro rata basis. This announcement is not a solicitation to sell shares and does not guarantee the repurchase will resolve any market price discount.

Positive

• Conditional cash tender offer for up to 40% of outstanding shares, which could enhance shareholder value if approved.
• Opportunity for stockholders to vote on a new investment advisory agreement, potentially aligning interests.

Negative

• Tender offer contingent on stockholder approval, which introduces uncertainty.
• No guarantee that shares tendered will be fully purchased, potentially leaving shareholders with unsold shares.

NEW YORK, Oct. 9, 2020 /PRNewswire/ -- Royce Global Value Trust, Inc. (NYSE: RGT) (the "Fund") today announced that its Board of Directors (the "Board") has authorized a conditional cash tender offer for up to 40% of the Fund's outstanding shares of common stock (the "Shares") at a price per Share equal to 100% of the Fund's net asset value per Share as of the close of regular trading on the New York Stock Exchange on the date the tender offer expires, provided the Fund's stockholders approve a new investment advisory agreement with Royce Investment Partners ("Royce")¹, the Fund's investment manager, in accordance with the requirements of the Investment Company Act of 1940.  Such new agreement will be voted upon at the Special Meeting of Stockholders that is currently scheduled to be held on Friday, October 30, 2020 at 1:00 p.m. Eastern Time in a virtual meeting format.

Additional terms and conditions of the tender offer will be set forth in filings to be made with the Securities and Exchange Commission, the Fund's tender offering materials sent to stockholders, and additional press releases, as applicable. If the number of Shares tendered in the tender offer exceeds the maximum number of Shares that is subject to the tender offer, the Fund will purchase Shares from tendering stockholders on a pro rata basis (disregarding fractional shares). Accordingly, no assurance can be given that the Fund will purchase all of a stockholder's tendered Shares in the tender offer or that such Share repurchases will reduce or eliminate any discount of the Fund's market price per Share to the Fund's net asset value per Share.  This announcement of a contingent tender offer is not a recommendation, an offer to purchase, or a solicitation of an offer to sell Shares and the above statements are not intended to constitute an offer to participate in any tender offer. 

About Royce Global Value Trust, Inc.
Royce Global Value Trust, Inc. is a closed-end diversified management investment company whose shares of Common Stock are listed and traded on the New York Stock Exchange. The Fund invests in both U.S. and non-U.S. common stocks (generally market caps up to $10 billion).

For further information on The Royce Funds℠, please visit our web site at: www.royceinvest.com.

Forward Looking Statement
This press release is not an offer to purchase nor a solicitation of an offer to sell shares of the Fund. This letter may contain statements regarding plans and expectations for the future that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and can sometimes be identified by the use of words such as "plan," "expect," "will," "should," "could," "anticipate," "intend," "project," "estimate," "guidance," "possible," "continue" and other similar terms and phrases, although not all forward-looking statements include these words. Such forward-looking statements are based on the current plans and expectations of the Fund, and are subject to risks and uncertainties that could cause actual results, performance and events to differ materially from those described in the forward-looking statements. Additionally, past performance is no guarantee of future results. Additional information concerning such risks and uncertainties are or will be contained in the Fund's filings with the SEC, including the Fund's Annual Report to Stockholders on Form N-CSR for the year ended December 31, 2019, the Fund's Semiannual Report to Stockholders on Form N-CSRS for the six-month period ended June 30, 2020, and subsequent filings with the SEC. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Fund does not undertake any responsibility to update publicly or revise any forward-looking statement.

Media Contact
Joele Frank, Wilkinson Brimmer Katcher: Lucas Pers 212-355-4449

Important Disclosure Information
¹Royce & Associates, LP is a Delaware limited partnership that primarily conducts its business under the name Royce Investment Partners.

View original content:http://www.prnewswire.com/news-releases/royce-global-value-trust-inc-announces-conditional-tender-offer-301149678.html

SOURCE Royce Global Value Trust, Inc.

FAQ

What is Royce Global Value Trust's tender offer?

Royce Global Value Trust has proposed a conditional cash tender offer to buy back up to 40% of its outstanding shares at net asset value, pending shareholder approval.

When is the special meeting for stockholders regarding the tender offer?

The special meeting for stockholders is scheduled for October 30, 2020, at 1:00 p.m. Eastern Time.

What happens if more shares are tendered than the limit?

If more shares are tendered than the maximum allowed, purchases will occur on a pro rata basis, meaning not all shares may be repurchased.

Will tendering shares guarantee a repurchase by Royce Global Value Trust?

No, tendering shares does not guarantee their repurchase by the Fund.

What is the significance of the new investment advisory agreement?

The new investment advisory agreement must be approved by shareholders for the tender offer to proceed, impacting potential investment management and strategy.