Virtus Total Return Fund Initiates First Conditional Offer

Introduction to Virtus Total Return Fund's Tender Offer

Virtus Total Return Fund Inc. (NYSE: ZTR) has recently announced a significant financial maneuver that signals its commitment to enhancing shareholder value. The fund's initiation of its first conditional tender offer aims to acquire an additional 10% of its outstanding shares, reflecting its strategic approach to capital management.

Tender Offer Conditions and Timing

The decision to execute this Tender Offer was activated when the Average Trading Discount of the Fund’s shares surpassed 12% within the specified measurement period. This time frame spans from late May to the end of November, during which the average discount was noted at 12.51%. Such a substantial discount may present an opportune moment for the fund to bolster its share value.

Expected Dates for the Tender Offer

The Tender Offer is slated to commence approximately on January 7 of the upcoming year and is expected to conclude around February 5. This timeframe is crucial as it allows shareholders to reconsider their positions and potentially take advantage of the offer before it expires.

What Shareholders Can Expect

As part of this Tender Offer, Virtus Total Return Fund will offer to buy back 10% of its outstanding shares. The proposed purchase price is set at 98% of the net asset value as evaluated at the conclusion of regular trading on the expiration date. This means that shareholders could see a return of value close to the actual worth of their shares, depending on trading conditions.

Further Information on Offer Details

Additional specifics regarding the Tender Offer will be provided in the fund's forthcoming communications, which will include essential documents that detail the terms and conditions of the offer. Shareholders are encouraged to review these materials carefully to understand the implications fully.

About Virtus Total Return Fund Inc.

Virtus Total Return Fund Inc. stands out as a diversified closed-end fund dedicated primarily to capital appreciation while also considering income as a secondary goal. Backed by Virtus Investment Advisers, Inc., the fund is further supported by notable subadvisers including Duff & Phelps Investment Management Co. and Newfleet Asset Management, broadening its investment strategy and expertise.

Understanding the Risks

Investing in funds like Virtus Total Return Fund is not without its risks. Potential investors should be aware that there is a possibility of losing principal, and the value of shares may not always reflect the initial investment during resale. This fund, like many closed-end funds, may trade at a premium or discount compared to its net asset value (NAV), which adds an additional layer of risk and opportunity.

Accessing More Information

For those looking for deeper insights, the Fund's annual report and additional resources can be accessed freely through its shareholder services. Knowledge about the fund's overall strategy and performance is essential for making informed investing decisions.

Conclusion: A Strategic Move for Shareholders

The announcement of the Tender Offer by Virtus Total Return Fund Inc. marks a compelling opportunity for investors. With the anticipated buyback set against varying trading conditions, the fund aims to enhance its shareholder value while demonstrating a robust investment strategy. Investors should remain informed and assess their options as this Tender Offer unfolds.

Frequently Asked Questions

What is the purpose of the Tender Offer?

The Tender Offer aims to repurchase an additional 10% of the Fund’s outstanding shares to enhance shareholder value and capitalize on market conditions.

When will the Tender Offer take place?

The Tender Offer is expected to commence on January 7, 2025, and conclude by February 5, 2025.

How is the price for shares being determined?

The purchase price under the Tender Offer will be based on 98% of the net asset value of the shares as evaluated on the expiration date.

What risks are associated with investing in the Fund?

Investing in the Fund carries risks, including the potential loss of principal and the influence of market discounts or premiums affecting share value.

Where can I find more information about the Fund?

Investors can obtain further details through the Fund's shareholder services or by reviewing the Fund’s annual report.

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