Tekla World Healthcare Fund Announces Renewal of Share Repurchase Program

Rhea-AI Summary

Tekla World Healthcare Fund has renewed its share repurchase program, allowing the purchase of up to 12% of outstanding common shares until July 14, 2022. This initiative aims to enhance shareholder value and reduce the market price discount relative to the net asset value per share. The timing and amount of repurchases will be at the discretion of Tekla Capital Management. However, there is no guarantee that share repurchases will increase market prices or net asset value.

Positive

• Renewal of share repurchase program to enhance shareholder value.
• Potential reduction of the market price discount relative to net asset value.

Negative

• No assurance that share repurchases will increase market price or net asset value.

Tekla World Healthcare Fund (the “Fund”) announced today that its Board of Trustees authorized a renewal of its share repurchase program. The current share repurchase program allows the Fund to purchase in the open market up to 12% of its outstanding common shares for a one-year period ending July 14, 2021. The renewal will allow the Fund to purchase in the open market up to 12% of its outstanding common shares for a one-year period ending July 14, 2022. The Board authorized the share repurchase program as a result of its periodic review of the options available to enhance shareholder value and potentially reduce the discount between the market price of the Fund’s shares and the net asset value per share. The share repurchase program is intended to increase the Fund’s net asset value per share and could also have the benefit of providing additional liquidity in the trading of shares.

The amount and timing of repurchases will be at the discretion of Tekla Capital Management LLC, the investment adviser to the Fund. There is no assurance that the Fund will purchase shares at any specific discount levels or in any specific amounts or on any specific date. The Fund’s repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. There is no assurance that the market price of the Fund’s shares, either absolute or relative to net asset value, will increase as a result of any share repurchases. The Board will monitor the effect of the share repurchase program on the Fund’s market prices and net asset value per share, expense ratio and investment strategy over time.

Tekla World Healthcare Fund (NYSE: THW) is a closed-end fund that invests in companies in the healthcare industry. Tekla Capital Management LLC, based in Boston, serves as investment adviser to the Fund. Shares of the Fund can be purchased on the New York Stock Exchange through any securities broker.

For additional information, please consult www.teklacap.com or call (877) 855-3434.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210325005922/en/

FAQ

What is the purpose of Tekla World Healthcare Fund's share repurchase program?

The share repurchase program aims to enhance shareholder value and reduce the market price discount relative to the net asset value per share.

How much of its shares can Tekla World Healthcare Fund repurchase?

The Fund can repurchase up to 12% of its outstanding common shares.

What is the duration of the renewed share repurchase program for THW?

The renewed program is effective until July 14, 2022.

Who decides the timing and amount of the share repurchases for THW?

Tekla Capital Management LLC, the investment adviser, will determine the timing and amount of repurchases.

Will the share repurchases necessarily increase THW's market price?

There is no assurance that the market price or net asset value will increase as a result of the share repurchases.