Liberty All-Star® Equity Fund Announces Record Date for Rights Offering

Rhea-AI Summary

The Liberty All-Star Equity Fund (NYSE: USA) has announced a rights offering for its shareholders. The record date is set for October 15, 2021, with one right issued for each share held. Shareholders can purchase one additional share for every ten rights received. The offering will commence around October 21, 2021, and end on November 22, 2021. Purchase price will be 95% of the lower of net asset value or market price on the expiration date. A final Registration Statement with the SEC is pending. The Fund manages over $1.7 billion in net assets.

Positive

• Rights offering allows shareholders the opportunity to purchase additional shares.
• Potential for up to 25% additional shares if oversubscribed, benefiting investors.

Negative

• No finalized Registration Statement with the SEC as of the press release date, delaying the offering.
• Investment carries risks, including potential loss of principal.

BOSTON, Oct. 5, 2021 /PRNewswire/ -- The Liberty All-Star^® Equity Fund (NYSE: USA) today announced that it has set the record date for its previously announced rights offering. 

The Fund is issuing non-transferable rights ("Rights") to its shareholders of record ("Record Date Shareholders") at the close of business on October 15, 2021. Record Date Shareholders will receive one Right for each share held and will be allowed to purchase one additional share of the Fund for each ten Rights received (the "Primary Subscription"). Shareholders who fully exercise their Rights may subscribe for additional shares not subscribed for by other shareholders in the Primary Subscription.  If such over-subscription requests exceed the number of shares available, the Fund may, in its sole discretion, elect to issue additional shares in an amount of up to 25% of the shares issued in the Primary Subscription. 

The offering is subject to the effectiveness of the Fund's Registration Statement currently on file with the Securities and Exchange Commission ("SEC") and will be made only by means of a prospectus.  The rights offering is expected to commence on or about October 21, 2021 and to expire on or about November 22, 2021.  The subscription price per share will be 95 percent of the reported net asset value or market price per share, whichever is lower on the expiration date. Market price per share will be determined based on the average of last reported sales prices of a share on the New York Stock Exchange on the expiration date and the four trading days preceding the expiration date.

A final Registration Statement relating to the securities has not been filed with the SEC as of the date of this release. These securities may not be sold nor may offers to purchase be accepted prior to the time the Registration Statement becomes effective with the SEC.

This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy.  Investors should read the prospectus, when available, and consider the investment objective, risks, charges and expenses of the Fund carefully before investing. 

The Fund does not continuously issue shares and trades in the secondary market.  Investors wishing to buy or sell shares need to place orders through an intermediary or broker.  The share price of a closed-end fund is based on the market's value.  The Fund's shares are listed on the New York Stock Exchange under the ticker symbol USA.  ALPS Advisors, Inc. is the investment advisor of the Fund, a multi-managed, closed-end investment company with more than $1.7 billion in net assets as of October 4, 2021.

Past performance cannot predict future results.

An investment in the Fund involves risk, including loss of principal.

Secondary market support provided to the Fund by ALPS Fund Services, Inc.'s affiliate ALPS Portfolio Solutions Distributor, Inc., a FINRA Member. ALPS Fund Services, Inc., ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc. are affiliated entities.

For Information Contact:

Liberty All-Star^® Equity Fund
1-800-241-1850
www.all-starfunds.com

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SOURCE Liberty All-Star Funds

FAQ

What is the record date for the Liberty All-Star Equity Fund's rights offering?

The record date is October 15, 2021.

When does the rights offering for ticker USA commence?

The rights offering is expected to commence on or about October 21, 2021.

What is the subscription price for shares in the rights offering?

The subscription price will be 95% of the lower of the reported net asset value or market price on the expiration date.

What is the duration of the rights offering for USA?

The offering is expected to expire on or about November 22, 2021.

How many shares can shareholders purchase in the rights offering?

Shareholders can purchase one additional share for every ten rights received.