The Fund announced its plan to conduct an issuer tender offer pursuant to Rule 13e-4 under the Securities Exchange Act of 1934 for up to 15 million of its common shares, at a maximum aggregate purchase price of $150 million, in exchange for consideration consisting of approximately 80% preferred shares and 20% cash. The Preferred Shares are expected to be rated by a nationally recognized statistical rating organization and listed on the New York Stock Exchange (“NYSE”).
The Fund’s Board of Trustees (the “Board”) authorized the Exchange Offer on October 13, 2020. The Exchange Offer is expected to commence the week of October 19, 2020, or as soon thereafter as practicable.
The Fund will conduct the Exchange Offer through a procedure called a “Modified Dutch Auction.” For a common shareholder choosing to participate in the Exchange Offer, this procedure allows the shareholder to select a price, within a set price range, at which they are willing to sell their Shares. The proposed price range for the Exchange Offer is $10.00-$12.00 per Share. After all tendering shareholders indicate their respective sale prices, the Fund will pay the lowest price indicated that will permit the Fund to purchase as many Shares as possible, up to the maximum aggregate purchase price of $150 million.