Total Return Securities Fund Announces Major Rights Offering
Total Return Securities Fund Launches Rights Offering
The Board of Directors of Total Return Securities Fund, Inc. has revealed exciting news for its shareholders. The fund, previously known as The Swiss Helvetia Fund, Inc. (NYSE: SWZ), is moving forward with a rights offering. This initiative will provide existing shareholders with the opportunity to purchase additional shares at a subscription price set at 85% of the net asset value (NAV) on the expiration date. This means that shareholders can secure more shares at a discounted price while contributing to the fund's growth.
What the Rights Offering Entails
For every share of the Fund held, shareholders will receive one non-transferable right. These rights can be used to acquire one additional share. It is important for interested shareholders to stay informed, as the specific date for this offering will be announced shortly. Additionally, rights holders who fully exercise their rights will have the option to subscribe for extra shares that remain unsubscribed by others. This element of the offering will be detailed in a forthcoming prospectus, which will be available through official channels.
Enhancing Shareholder Value
After the rights offering concludes, the Board has intentions to initiate a tender offer. This is a strategic move aimed at purchasing a significant portion of the Fund's outstanding shares. Specifically, if the rights offering results in the issuance of at least 8 million shares, they will pursue the acquisition of 30% of the Fund's current shares. Conversely, if less than 8 million shares are issued, they plan to purchase either 15% of outstanding shares or enough shares to elevate the Fund's net assets to approximately $90 million, whichever is greater. This tender offer is designed to enhance overall shareholder value by distributing shares at a price no less than 98% of the NAV.
What This Means for Investors
For current and potential investors, these developments present a compelling opportunity to increase their stake in the Total Return Securities Fund. The rights offering allows for accessible investment at a favorable price, while the subsequent tender offer illustrates the Board's commitment to maximizing the value of each share. Shareholders should take note of these significant moves, as they could lead to increased financial stability and growth prospects.
How to Stay Updated
Investors and stakeholders are encouraged to monitor communications from the Fund closely. Essential documents and updates regarding the rights offering and tender offer will be made available through official platforms. While this announcement marks an exciting time for the Fund, shareholders should ensure they remain informed about developments as they unfold. This will help them make informed decisions regarding their investments.
Contact Information
For additional information or inquiries, stakeholders can reach out to Tom Antonucci at 201-881-7102. They can also connect via email for any specific queries related to the offering or the Fund's direction as a whole. Open lines of communication will facilitate better understanding and engagement among investors.
Frequently Asked Questions
What is the purpose of the rights offering?
The rights offering allows existing shareholders to purchase additional shares at a discounted subscription price, enhancing their investment.
How will the tender offer work?
The tender offer aims to buy back a percentage of shares based on the results of the rights offering, ensuring a focus on increasing net assets.
What does it mean to hold a non-transferable right?
A non-transferable right allows shareholders to purchase more shares but cannot be sold or passed on to others.
How can I stay informed about the offering?
Shareholders should monitor the Fund's communications and the SEC's website for updates and essential documentation.
Who can I contact for more information?
For inquiries, Tom Antonucci is available at 201-881-7102 or via email for detailed questions.
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