Virtus Total Return Fund Inc. Announces First Conditional Tender Offer
Virtus Total Return Fund (NYSE: ZTR) has announced its first conditional tender offer to purchase 10% of its outstanding shares. The tender offer was triggered as the fund's average trading discount exceeded 12%, reaching 12.51% during the measurement period from May 31, 2024, to November 26, 2024. The tender offer will run from January 7, 2025, to February 5, 2025, offering shareholders cash equal to 98% of the fund's net asset value at the expiration date, minus tender offer expenses.
Virtus Total Return Fund (NYSE: ZTR) ha annunciato la sua prima offerta pubblica condizionata per acquistare il 10% delle azioni in circolazione. L'offerta 猫 stata attivata in quanto il discount medio di negoziazione del fondo ha superato il 12%, raggiungendo il 12,51% durante il periodo di misurazione dal 31 maggio 2024 al 26 novembre 2024. L'offerta scadr脿 dal 7 gennaio 2025 al 5 febbraio 2025, offrendo agli azionisti un pagamento in contante pari al 98% del valore netto degli attivi del fondo alla data di scadenza, meno le spese legate all'offerta.
Virtus Total Return Fund (NYSE: ZTR) ha anunciado su primera oferta de compra condicionada para adquirir el 10% de sus acciones en circulaci贸n. La oferta fue activada porque el descuento promedio de negociaci贸n del fondo super贸 el 12%, alcanzando el 12,51% durante el per铆odo de medici贸n del 31 de mayo de 2024 al 26 de noviembre de 2024. La oferta estar谩 vigente desde el 7 de enero de 2025 hasta el 5 de febrero de 2025, ofreciendo a los accionistas un pago en efectivo equivalente al 98% del valor neto de los activos del fondo en la fecha de vencimiento, menos los gastos de la oferta.
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Virtus Total Return Fund (NYSE: ZTR) a annonc茅 sa premi猫re offre d'achat conditionnelle pour acqu茅rir 10% de ses actions en circulation. L'offre a 茅t茅 d茅clench茅e lorsque l'茅cart moyen de n茅gociation du fonds a d茅pass茅 12%, atteignant 12,51% durant la p茅riode de mesure allant du 31 mai 2024 au 26 novembre 2024. L'offre sera ouverte du 7 janvier 2025 au 5 f茅vrier 2025, offrant aux actionnaires un paiement en esp猫ces 茅quivalent 脿 98% de la valeur nette des actifs du fonds 脿 la date d'expiration, moins les frais li茅s 脿 l'offre.
Virtus Total Return Fund (NYSE: ZTR) hat sein erstes bedingtes 脺bernahmeangebot zum Kauf von 10% seiner ausgegebenen Aktien angek眉ndigt. Das Angebot wurde ausgel枚st, da der durchschnittliche Handelspreis des Fonds einen Abschlag von 眉ber 12% 眉berschritt und w盲hrend des Bewertungszeitraums vom 31. Mai 2024 bis zum 26. November 2024 12,51% erreichte. Das Angebot l盲uft vom 7. Januar 2025 bis zum 5. Februar 2025 und bietet den Aktion盲ren Bargeld, das 98% des Nettoverm枚genswertes des Fonds zum Ablaufdatum entspricht, abz眉glich der Kosten des 脺bernahmeangebots.
- Fund will repurchase 10% of outstanding shares at 98% of NAV, potentially reducing the trading discount
- Share buyback could provide liquidity opportunity for shareholders
- 12.51% average trading discount indicates shares trading significantly below NAV
- Shareholders will receive 2% less than NAV plus bear tender offer expenses
Insights
This tender offer represents a significant development for ZTR shareholders. The 12.51% average trading discount triggering this offer indicates persistent undervaluation of the fund's shares in the market. The upcoming tender at 98% of NAV provides an exit opportunity at a price closer to the fund's intrinsic value.
The 10% share repurchase could help reduce the trading discount and potentially boost the share price for remaining shareholders. However, investors should note that if the tender is oversubscribed, shares will be accepted on a pro-rata basis, meaning not all tendered shares may be purchased. The timing in early 2025 gives shareholders adequate time to evaluate their positions and make informed decisions about participation.
This Tender Offer was triggered when the Average Trading Discount of the Fund鈥檚 shares exceeded
This Tender Offer period is expected to commence on or about January 7, 2025 and expire on or about February 5, 2025 (鈥渆xpiration date鈥�), unless extended. Under this Tender Offer, the Fund will seek to acquire
Further information about the Tender Offer will be announced at a later date and set forth in the Fund鈥檚 offering materials, which will be distributed to the Fund鈥檚 shareholders.
About the Fund
is a diversified closed-end fund whose investment objective is capital appreciation, with income as a secondary objective. Virtus Investment Advisers, Inc. is the investment adviser and and 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 .
Fund Risks
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund鈥檚 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鈥檚 investment objective and risks, please see the Fund鈥檚 annual report. A copy of the Fund鈥檚 most recent annual report may be obtained free of charge by contacting 鈥淪hareholder Services鈥� as set forth at the bottom of this press release.
The Fund has not commenced the Tender Offer described in this release. The Tender Offer will only be made pursuant to a Tender Offer statement on Schedule TO containing an offer to purchase, a related letter of transmittal and other documents filed with the SEC as exhibits to the Tender Offer statement on Schedule TO (collectively, the 鈥淭ender Offer Materials鈥�), with all such documents made available on the SEC鈥檚 website at sec.gov. The Fund will also make available to shareholders, without charge, the offer to purchase, the letter of transmittal, and other necessary documents related to the Tender Offer. Shareholders should read any Tender Offer Materials carefully and, in their entirety, when and if they become available, as well as any amendments or supplements thereto, as they would contain important information about the Tender Offer.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state.
Investing involves risk and it is possible to lose money on any investment in the Fund.
View source version on businesswire.com:
For Further Information:
Shareholder Services
(866) 270-7788
closedendfunds@virtus.com
Source: Virtus Total Return Fund Inc.
FAQ
What is the tender offer price for Virtus Total Return Fund (ZTR) shares?
When does the ZTR tender offer begin and end?
What percentage of ZTR shares will be purchased in the tender offer?
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