RiverNorth Capital and Income Fund, Inc.* Announces Preliminary Results of Rights Offering
RiverNorth Capital and Income Fund, Inc. (NYSE: RSF) announced the preliminary results of its transferable rights offering that expired on January 27, 2023. The Offering attracted subscription requests for 1,625,445 shares, resulting in an expected issuance of 1,047,000 new shares, generating approximately $16.6 million in gross proceeds. The subscription price per share was set at $15.84, slightly lower than the initial estimate of $16.18. The Offering was oversubscribed, leading to pro-rata allocations for over-subscription requests. New shares will be record date shares for the February 2023 distribution but not for January's distributions.
- Oversubscription of the rights offering indicates strong demand for RSF shares.
- Expected gross proceeds of $16.6 million will bolster the Fund's financial position.
- Final subscription price was lower than the original estimate, which may raise concerns among investors.
- New shares will not receive January 2023 distributions, potentially disappointing new shareholders.
The Offering was oversubscribed and the over-subscription requests exceeded the over-subscription shares available. Accordingly, the shares issued as part of the over-subscription privilege of the Offering will be allocated pro-rata among record date stockholders who submitted over-subscription requests based on the number of rights originally issued to them by the Fund.
The foregoing numbers are estimates only. The Fund will announce the final results of the Rights Offering in a press release on or about
The Offering’s final subscription price per share was determined to be
The final subscription price is lower than the original estimated subscription price of
Shares of common stock issued as a result of the rights offering will not be record date shares for the Fund’s monthly distributions paid in
This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy.
*Formerly known as
The investment objective of the Fund is to seek a high level of current income. The Fund had approximately
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, annual report and semi-annual report.
Past performance is no guarantee of future results.
See the Prospectus for a more detailed description of Fund risks.
The profitability of specialty finance and other financial companies is largely dependent upon the availability and cost of capital funds and may fluctuate significantly in response to changes in interest rates, as well as changes in general economic conditions. If the borrower of Alternative Credit (as defined below) in which the Fund invests is unable to make its payments on a loan, the Fund may be greatly limited in its ability to recover any outstanding principal and interest under such loan, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated, the loan may be unsecured or under collateralized, and/or it may be impracticable to commence a legal proceeding against the defaulting borrower. Substantially all of the Alternative Credit in which the Fund invests will not be guaranteed or insured by a third party. In addition, the Alternative Credit Instruments in which the Fund may invest will not be backed by any governmental authority. Prospective borrowers supply a variety of information regarding the purpose of the loan, income, occupation and employment status (as applicable) to the lending platforms. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms, including their intentions for the use of the loan proceeds. Alternative Credit Instruments are generally not rated by the nationally recognized statistical rating organizations (“NRSROs”). Such unrated instruments, however, are considered to be comparable in quality to securities falling into any of the ratings categories used by such NRSROs to classify "junk" bonds (i.e., below investment grade securities). Accordingly, the Fund’s unrated Alternative Credit Instrument investments constitute highly risky and speculative investments similar to investments in “junk” bonds, notwithstanding that the Fund is not permitted to invest in loans that are of subprime quality at the time of investment. Although the Fund is not permitted to invest in loans that are of subprime quality at the time of investment, an investment in the Fund’s Shares should be considered speculative and involving a high degree of risk, including the risk of loss of investment. There can be no assurance that payments due on underlying loans, including Alternative Credit, will be made.
Diversification does not ensure a profit or a guarantee against loss.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Fund’s prospectus and most recent periodic reports contain this and other important information about the investment company and may be obtained by visiting rivernorth.com/literature or by calling 844.569.4750. Read the Prospectus carefully before investing.
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.
Not FDIC Insured | May Lose Value | No Bank Guarantee
RiverNorth® is a registered trademark of
Marketing services provided by
©2000-2023
RVN001644
View source version on businesswire.com: https://www.businesswire.com/news/home/20230130005179/en/
312.445.2336
clakumb@rivernorth.com
Source:
FAQ
What were the results of RiverNorth Capital's rights offering that expired on January 27, 2023?
What was the final subscription price per share for RSF's rights offering?
Will the new shares from RSF's offering receive January 2023 distributions?
Why is the offering considered oversubscribed?
