SuRo Capital Corp. Tender Offer Expiring on April 1, 2024 at 5:00 P.M., Eastern Time
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Insights
The tender offer by SuRo Capital Corp. to repurchase up to 2 million shares represents a strategic move to manage their equity structure and potentially increase shareholder value. By offering a price range between $4.00 and $5.00, the company is giving shareholders an opportunity to sell back shares at a potentially attractive premium, depending on the recent market price. This could indicate that the company believes its stock is undervalued or it wishes to return capital to shareholders in an efficient manner.
From a market perspective, such buybacks can be a double-edged sword; they can lead to a temporary increase in stock price due to reduced supply and perceived company confidence, but they also may signal that the company lacks better investment opportunities. Moreover, using available cash for buybacks decreases the cash reserves, which could be used for other value-creating opportunities or as a cushion for future downturns.
Analyzing the financial implications of the tender offer, if fully subscribed, the buyback would constitute approximately 7.9% of SuRo Capital's outstanding shares. This repurchase could be accretive to earnings per share (EPS) by reducing the number of shares outstanding, which may make the company more attractive to investors seeking earnings growth. However, investors should consider the company's net asset value and the opportunity cost of the cash used for the buyback.
It is also important to note that the tender offer is not contingent on a minimum number of shares being tendered, which provides flexibility for the company but adds uncertainty for the shareholders. The conditions disclosed in the tender offer documents should be scrutinized to understand potential implications on the company's financial health and strategic direction.
The board's decision not to make a recommendation to shareholders on whether to tender their shares suggests a neutral stance, leaving the decision to the discretion of the shareholders. This could be seen as a move to ensure fairness and avoid influencing the market. However, it also places the onus on shareholders to conduct their due diligence and decide if the tender price aligns with their valuation of the company.
Future considerations of additional tender offers or measures to enhance shareholder value indicate that the company is actively seeking ways to manage its stock price and shareholder returns. Shareholders should evaluate such statements in the context of the company's long-term strategy and financial performance.
Modified Dutch Auction Tender Offer to Repurchase up to 2 Million Shares at a Price per Share Between
NEW YORK, March 22, 2024 (GLOBE NEWSWIRE) -- SuRo Capital Corp. (“SuRo Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: SSSS) today reminded its stockholders its modified “Dutch Auction” tender offer (the “Tender Offer”), which commenced on February 20, 2024, remains scheduled to expire at 5:00 P.M., Eastern Time, on April 1, 2024. The Company launched the Tender Offer to purchase up to 2,000,000 shares of its common stock at a price per share not less than
Based on the number of shares tendered and the prices specified by the tendering stockholders, the Company will determine the lowest per-share price that will enable it to acquire up to 2,000,000 shares of its common stock. All shares accepted in the Tender Offer will be purchased at the same price even if tendered at a lower price.
The Tender Offer is not contingent upon any minimum number of shares being tendered. The Tender Offer is, however, subject to other conditions, which have been disclosed in the Tender Offer documents. In the future, the Board of Directors may consider additional tender offer(s) or other measures to enhance shareholder value based upon a variety of factors, including the market price of the Company’s common stock and its net asset value.
The Company’s Board of Directors is not making any recommendation to stockholders as to whether to tender or refrain from tendering their shares into the Tender Offer. Stockholders must decide how many shares they will tender, if any, and the price within the stated range at which they will offer their shares for purchase.
The information agent for the Tender Offer is D.F. King & Co. Inc., and the depositary is American Stock Transfer & Trust Company, LLC. The offer to purchase (the “Offer to Purchase”), a letter of transmittal and related documents have been mailed to registered holders and certain of our beneficial holders. Beneficial holders may alternatively receive the Offer to Purchase and a communication to consult with their bank, broker or custodian, if they wish to tender shares. For questions and information, please contact the information agent. Banks and brokers may call the information agent at (212) 269-5550, and all others may call the information agent toll-free at (877) 361-7972.
Certain Information Regarding the Tender Offer
The information in this press release describing the Company’s Tender Offer is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell shares of the Company’s common stock in the Tender Offer. The Tender Offer is being made only pursuant to the Offer to Purchase and the related materials that the Company filed with the Securities and Exchange Commission and distributed to its stockholders, as they may be amended or supplemented. Stockholders should read such Offer to Purchase and related materials carefully and in their entirety because they contain important information, including the various terms and conditions of the Tender Offer. Stockholders of SuRo Capital Corp. may obtain a free copy of the Tender Offer statement on Schedule TO, the Offer to Purchase and other documents that the Company filed with the Securities and Exchange Commission from the Securities and Exchange Commission’s website at www.sec.gov. Stockholders may also obtain a copy of these documents, without charge, from D.F. King & Co. Inc., the information agent for the Tender Offer, by calling toll-free at (877) 361-7972. Stockholders are urged to carefully read all of these materials prior to making any decision with respect to the Tender Offer. Stockholders and investors who have questions or need assistance may call D.F. King & Co. Inc.
Forward-Looking Statements
Statements included herein, including statements regarding SuRo Capital's beliefs, expectations, intentions, or strategies for the future, may constitute "forward-looking statements". SuRo Capital cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements. All forward-looking statements involve a number of risks and uncertainties, including the impact of any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy, that could cause actual results to differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements. Risk factors, cautionary statements, and other conditions which could cause SuRo Capital's actual results to differ from management's current expectations are contained in SuRo Capital's filings with the Securities and Exchange Commission. SuRo Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. The fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. SuRo Capital is headquartered in New York, NY and has offices in San Francisco, CA. Connect with the company on X, LinkedIn, and at www.surocap.com.
Contact
SuRo Capital Corp.
(212) 931-6331
IR@surocap.com
FAQ
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