Director of TCW Strategic Income Fund (NYSE: TSI) acquires 193,761 shares via rights offer
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
TCW Strategic Income Fund director Peter McMillan increased his stake through a rights offering. He exercised 307,915 subscription rights linked to the fund’s common stock to acquire 102,638 shares, and obtained a further 91,123 shares via the over-subscription privilege, for a total of 193,761 new shares at a subscription price of $4.47 per share.
Following these transactions, his direct holdings rose to 493,761 shares of common stock. The rights offering was conducted at a discount to market, on a 1-for-3 basis, and was over-subscribed with excess demand allocated pro rata among eligible stockholders.
Positive
- None.
Negative
- None.
Insider Trade Summary
307,915 shares exercised/converted
Mixed
2 txns
Insider
McMillan Peter
Role
Director
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| X | Subscription Rights for Shares of Common Stock (right to buy | 307,915 | $0.00 | -- |
| X | Common Stock | 193,761 | $4.47 | $866K |
Holdings After Transaction:
Subscription Rights for Shares of Common Stock (right to buy — 0 shares (Direct);
Common Stock — 493,761 shares (Direct)
Footnotes (1)
- TCW Strategic Income Fund, Inc. (NYSE: TSI) (the "Fund") issued to the stockholders of record (the "Record Date Stockholders") at the close of business on February 19, 2026 (the "Record Date") transferable rights (each a "Right" and, collectively, the "Rights") entitling such Record Date Stockholders to subscribe for shares of common stock, par value $0.01 per share (the "Common Stock"), of the Fund (the "Offer") at a discount to the market price of the shares of Common Stock. The Fund distributed to Record Date Stockholders one Right for each share of Common Stock held on the Record Date. (Continued from footnote 1) Record Date Stockholders were entitled to purchase one new share of Common Stock for every three Rights held (1-for-3); however, any Record Date Stockholder who owned fewer than three shares of Common Stock as of the Record Date was entitled to subscribe for one share of Common Stock. Fractional shares of Common Stock were not issued. The subscription period commenced on the Record Date and expired on March 18, 2026. The final subscription price of $4.47 per share of Common Stock was determined based upon the terms of the Offer. Record Date Stockholders who exercised all of their primary subscription Rights (other than those Rights to acquire less than one share of Common Stock that could not be exercised) were eligible for an over-subscription privilege entitling Record Date Stockholders to subscribe for additional shares of Common Stock not purchased pursuant to the primary subscription. The Offer was over-subscribed. The over-subscription requests exceeded the over-subscription shares of Common Stock available. (Continued from footnote 3) Accordingly, the shares of Common Stock subscribed for pursuant to the over-subscription privilege of the Offer were allocated pro rata among those fully exercising record date shareholders who over-subscribed based on the number of shares of Common Stock they owned on Record Date. The number of share Common Stock acquired was confirmed to exercising Rights holders on March 27, 2026, following the pro-ration and allocation of shares of Common Stock pursuant to the over-subscription privilege. In connection with the Offer, the Reporting Person exercised 307,915 Rights to acquire 102,638 shares of Common Stock, and received an additional 91,123 shares of Common stock pursuant to the over-subscription privilege. In total, the Reporting Person acquired 193,761 shares of Common Stock in connection with the Offer.
Key Figures
Rights exercised: 307,915 rights
Shares from rights: 102,638 shares
Over-subscription shares: 91,123 shares
+3 more
6 metrics
Rights exercised
307,915 rights
Subscription rights exercised to acquire common stock
Shares from rights
102,638 shares
Common stock acquired by exercising 307,915 rights
Over-subscription shares
91,123 shares
Additional common stock via over-subscription privilege
Total shares acquired
193,761 shares
Common stock acquired in connection with the offer
Subscription price
$4.47 per share
Final subscription price for common stock in the offer
Post-transaction holdings
493,761 shares
McMillan’s direct TSI common stock holdings after the offer
Key Terms
transferable rights, Record Date Stockholders, subscription price, over-subscription privilege, +1 more
5 terms
transferable rights financial
"transferable rights (each a "Right" and, collectively, the "Rights") entitling such Record Date Stockholders"
Transferable rights are tradable entitlements given to holders—often shareholders—that allow them to buy new shares, receive benefits, or participate in corporate actions, and can be sold or assigned to someone else. For investors they matter because they create a liquid way to capture value or avoid dilution: you can keep and use the right to maintain ownership, or sell it like a coupon to someone else, which affects potential share count, ownership percentage, and the company’s fundraising outcome.
Record Date Stockholders financial
"issued to the stockholders of record (the "Record Date Stockholders") at the close of business on February 19, 2026"
subscription price financial
"The final subscription price of $4.47 per share of Common Stock was determined based upon the terms of the Offer."
Subscription price is the set amount an investor pays to buy newly issued shares, bonds or units when a company offers them directly, such as in a rights issue or subscription offering. It matters because it determines how much an investor’s ownership cost will be, affects potential gains or losses and influences dilution of existing shareholders—think of it as a pre-order price that helps decide whether joining the new issue is worthwhile.
over-subscription privilege financial
"were eligible for an over-subscription privilege entitling Record Date Stockholders to subscribe for additional shares of Common Stock"
An over-subscription privilege is a feature of a share offering that lets existing investors request more shares than their initial entitlement, with any extra allocation given only if other investors do not take their full allotment. It matters because it gives shareholders a chance to increase their stake and avoid losing ownership percentage, much like ordering extra slices at a party in case others pass—however, receiving the extras is not guaranteed.
pro rata financial
"were allocated pro rata among those fully exercising record date shareholders who over-subscribed"
Pro rata means dividing or distributing something proportionally based on a specific factor, such as ownership or contribution. For example, if an investor owns 10% of a company, they would receive 10% of any dividends or benefits allocated. This approach ensures everyone gets their fair share relative to their stake or input, helping investors understand how benefits, costs, or responsibilities are fairly shared.
FAQ
What did Peter McMillan do in this TCW Strategic Income Fund (TSI) Form 4?
Peter McMillan exercised subscription rights and acquired additional common stock in TCW Strategic Income Fund. He used 307,915 rights and over-subscription privileges to obtain 193,761 new shares at a discounted subscription price, increasing his direct ownership to 493,761 shares after the transaction.
How did the rights offering for TCW Strategic Income Fund (TSI) work?
Record date stockholders received one transferable right for each TSI share held, allowing them to subscribe for new common stock. One new share could be purchased for every three rights (1-for-3), with a special minimum for holders of fewer than three shares, and no fractional shares issued.
What was the over-subscription privilege in the TSI rights offering?
Stockholders who fully exercised their primary rights could request extra shares under an over-subscription privilege. Because the offer was over-subscribed, available over-subscription shares were allocated pro rata, based on each fully exercising stockholder’s record date holdings of TCW Strategic Income Fund common stock.
What is McMillan’s ownership in TCW Strategic Income Fund (TSI) after the rights offering?
After completing the rights exercise and over-subscription allocations, McMillan directly holds 493,761 shares of TSI common stock. This figure reflects his prior position plus the 193,761 new shares acquired in connection with the discounted rights offering described in the Form 4 filing.