Virtus Total Return Fund Inc. Announces Preliminary Results of Tender Offer
Virtus Total Return Fund Inc. (NYSE: ZTR) has announced preliminary results of its tender offer to purchase 10% of its outstanding shares. The tender offer, which expired on February 6, 2025, was significantly oversubscribed with approximately 20,373,789 shares tendered, including shares tendered through guaranteed delivery notices.
Due to the oversubscription, shares will be purchased from tendering shareholders on a prorated basis. The purchase price has been set at 98% of the Fund's net asset value per share as of February 6, 2025, equating to $6.4386 per share. Final results of the tender offer are expected to be announced around February 12, 2025.
Virtus Total Return Fund Inc. (NYSE: ZTR) ha annunciato i risultati preliminari della sua offerta di acquisto per il 10% delle azioni in circolazione. L'offerta, scaduta il 6 febbraio 2025, ha registrato un'adesione significativamente superiore, con circa 20.373.789 azioni offerte, comprese le azioni offerte tramite avvisi di consegna garantita.
A causa dell'adesione eccessiva, le azioni saranno acquistate dai soci offerenti su base prorata. Il prezzo di acquisto è stato fissato al 98% del valore netto degli attivi del fondo per azione al 6 febbraio 2025, equivalente a $6,4386 per azione. I risultati finali dell'offerta di acquisto sono attesi intorno al 12 febbraio 2025.
Virtus Total Return Fund Inc. (NYSE: ZTR) ha anunciado los resultados preliminares de su oferta pública de adquisición para comprar el 10% de sus acciones en circulación. La oferta, que expiró el 6 de febrero de 2025, fue significativamente sobreadjudicada, con aproximadamente 20,373,789 acciones presentadas, incluidas las acciones ofrecidas a través de avisos de entrega garantizada.
Debido a la sobreadjudicación, las acciones serán compradas a los accionistas que han presentado ofertas de manera proporcional. El precio de compra se ha establecido en 98% del valor neto de los activos del fondo por acción a fecha del 6 de febrero de 2025, lo que equivale a $6.4386 por acción. Se espera que los resultados finales de la oferta se anuncien alrededor del 12 de febrero de 2025.
Virtus Total Return Fund Inc. (NYSE: ZTR)는 자사 발행 주식의 10%를 구매하기 위한 공개 매수의 잠정 결과를 발표했습니다. 이 공개 매수는 2025년 2월 6일에 만료되었으며, 약 20,373,789 주가 제안되는 등 상당한 초과 신청이 이루어졌습니다. 이는 보장된 인도 통지서를 통해 제안된 주식을 포함합니다.
초과 신청으로 인해 주식은 제안한 주주들에게 비례 배분 방식으로 구매될 것입니다. 구매 가격은 2025년 2월 6일 기준으로 펀드 순 자산 가치의 98%로 설정되었으며, 이는 $6.4386 per 주에 해당합니다. 공개 매수의 최종 결과는 2025년 2월 12일경 발표될 것으로 예상됩니다.
Virtus Total Return Fund Inc. (NYSE: ZTR) a annoncé les résultats préliminaires de son offre de rachat de 10% de ses actions en circulation. L'offre, qui a expiré le 6 février 2025, a été largement sursouscrite avec environ 20 373 789 actions soumises, y compris les actions soumises via des avis de livraison garantie.
En raison de la sursouscription, les actions seront achetées auprès des actionnaires ayant soumis une offre sur une base proportionnelle. Le prix d'achat a été fixé à 98% de la valeur nette d'actif du fonds par action au 6 février 2025, équivalant à $6,4386 par action. Les résultats finaux de l'offre sont attendus autour du 12 février 2025.
Virtus Total Return Fund Inc. (NYSE: ZTR) hat die vorläufigen Ergebnisse seines Angebots zur Rücknahme von 10% seiner ausstehenden Aktien bekannt gegeben. Das Angebot, das am 6. Februar 2025 abgelaufen ist, wurde erheblich überzeichnet, da etwa 20.373.789 Aktien eingereicht wurden, einschließlich der durch garantierte Lieferbenachrichtigungen eingereichten Aktien.
Aufgrund der Überzeichnung werden die Aktien von den tendernden Aktionären anteilig gekauft. Der Kaufpreis wurde auf 98% des Nettowertes des Fonds pro Aktie am 6. Februar 2025 festgelegt, was $6,4386 pro Aktie entspricht. Die endgültigen Ergebnisse des Angebots werden voraussichtlich um den 12. Februar 2025 bekannt gegeben.
- Strong shareholder interest with oversubscription of tender offer indicating market confidence
- Providing shareholders with liquidity opportunity at a minimal discount to NAV (98%)
- Prorated acceptance of shares due to oversubscription means shareholders cannot fully exit their positions as desired
- 2% discount to NAV represents a slight loss for selling shareholders
Insights
The preliminary results of Virtus Total Return Fund's tender offer reveal substantial shareholder participation, with tendered shares exceeding 20.37 million for a program targeting only 10% of outstanding shares. This significant oversubscription (approximately 2x the intended purchase amount) carries several important implications:
The prorated nature of the tender offer means shareholders will likely receive acceptance for less than half of their tendered shares. The purchase price of
This tender offer serves multiple strategic purposes: 1) It provides a liquidity event for shareholders at a more favorable price than the secondary market 2) It may help narrow the fund's trading discount to NAV by reducing supply and demonstrating management's commitment to shareholder value 3) The high participation rate signals potential shareholder dissatisfaction with the current trading discount.
For non-participating shareholders, this corporate action could be beneficial as it effectively increases their proportional ownership in the fund while maintaining the fund's investment strategy intact. The strong demand for the tender offer suggests continued pressure on management to address the fund's discount through additional shareholder-friendly actions.
Approximately 20,373,789 shares were tendered, including shares tendered pursuant to notices of guaranteed delivery, based on preliminary information. With the Tender Offer oversubscribed, the relative number of shares that will be purchased from each tendering shareholder will be prorated based on the number of shares properly tendered.
The purchase price of the properly tendered and accepted shares is
About the Fund
Virtus Total Return Fund Inc. is a diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, LLC is the investment adviser and Duff & Phelps Investment Management Co. and Newfleet Asset Management are the subadvisers to the Fund. For more information on the Fund, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section of virtus.com.
Fund Risks
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their NAV. For more information about the Fund’s investment objective and risks, please see the Fund’s annual report. A copy of the Fund’s most recent annual report may be obtained free of charge by contacting “Shareholder Services” as set forth at the bottom of this press release.
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For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Total Return Fund Inc.
FAQ
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