Liberty All-Star® Equity Fund Announces Rights Offering

Rhea-AI Summary

The Liberty All-Star Equity Fund (NYSE: USA) has announced a rights offering for its shareholders, allowing them to purchase additional shares. Shareholders will receive non-transferable rights to acquire one share for every ten they hold, with options for over-subscription if demand exceeds supply. The subscription price will be set at 95% of either the net asset value or market price, whichever is lower. This offering is pending the effectiveness of a Registration Statement with the SEC. Liberty All-Star manages over $1.8 billion in net assets as of August 6, 2021.

Positive

• Rights offering allows existing shareholders to purchase additional shares, potentially increasing their investment stake.
• Subscription price offers a discount at 95% of the reported net asset value or market price.

Negative

• The offering may dilute existing shareholders' equity if they do not participate.
• There is no current Registration Statement filed with the SEC, delaying the offering's execution.

BOSTON, Aug. 9, 2021 /PRNewswire/ -- The Board of Trustees (the "Board") of Liberty All-Star^® Equity Fund (NYSE: USA) (the "Fund") has authorized and set the terms of an offering to the Fund's shareholders of rights to purchase additional shares of the Fund. 

Shareholders on a record date to be established by the Fund's Board would be issued non-transferable rights entitling them to subscribe for one additional share for every ten shares held (the "Primary Subscription"), with the right to subscribe for additional shares not subscribed for by others 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 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. The offering is subject to the effectiveness of the Fund's Registration Statement to be filed with the Securities and Exchange Commission ("SEC") and will be made only by means of a prospectus.

A 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. To obtain an annual report or semi-annual report which contains this and other information, visit www.all-starfunds.com or call 1-800-241-1850. Read them 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 $1.8 billion in net assets as of August 6, 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

View original content to download multimedia:https://www.prnewswire.com/news-releases/liberty-all-star-equity-fund-announces-rights-offering-301351389.html

SOURCE Liberty All-Star Equity Fund

FAQ

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

The rights offering allows shareholders to purchase additional shares at a discounted price.

How many shares can I buy with the rights offering from Liberty All-Star Equity Fund?

Shareholders can buy one additional share for every ten shares they currently hold.

What is the subscription price for the new shares in the USA fund?

The subscription price is set at 95% of the lower of the net asset value or market price on the expiration date.

When will the rights offering for Liberty All-Star Equity Fund occur?

The offering is subject to the effectiveness of a Registration Statement and will occur once filed with the SEC.

What is the ticker symbol for the Liberty All-Star Equity Fund?

The ticker symbol for the fund is USA.