High Income Securities Fund Announces Results of Tender Offer

Rhea-AI Summary

High Income Securities Fund (NYSE: PCF) has completed its tender offer, which expired on December 9, 2024. The Fund offered to purchase up to 10,675,000 shares at 98% of the net asset value (NAV) per share. The tender offer was oversubscribed, with 11,885,085 shares validly tendered. Due to the oversubscription, approximately 90% of shares tendered by each shareholder will be accepted for payment at $7.07 per share, representing 98% of the NAV of $7.21 per common share.

Positive

• Successful completion of tender offer indicating strong shareholder participation
• Oversubscription demonstrates investor interest with 11.9M shares tendered vs 10.7M target

Negative

• Shareholders will receive only 90% of their tendered shares due to oversubscription
• 2% discount to NAV on tender offer price ($7.07 vs $7.21 NAV)

Insights

Financial Analyst

The tender offer completion at $7.07 per share represents a significant capital return event for PCF shareholders. The 90% pro-rata acceptance rate indicates strong shareholder participation, with demand exceeding the maximum offer size of 10,675,000 shares. This tender offer effectively provides an exit opportunity for investors at a slight discount to NAV, while potentially supporting the stock price by reducing the float. The 2% discount to NAV is relatively modest, making it an attractive liquidity event for shareholders. The total value of shares being repurchased amounts to approximately $75.5 million, which is substantial given the fund's market cap of about $199 million. This corporate action demonstrates management's commitment to shareholder value and could help narrow any persistent trading discount to NAV.

MILWAUKEE, Dec. 10, 2024 (GLOBE NEWSWIRE) -- High Income Securities Fund (NYSE: PCF) (the “Fund”) announced that its tender offer to purchase up to 10,675,000 of the Fund’s shares for cash at 98% of the per share net asset value (“NAV”) on the expiration date expired on December 9, 2024. Based on information provided by Equiniti, the depository for the tender offer, a total of 11,885,085 shares were validly tendered. As the total number of shares tendered exceeds 10,675,000 shares, approximately 90% of the shares tendered by each tendering shareholder will be accepted for payment at a price of $7.07 per share (98% of the NAV per common share of $7.21).

For information, please contact: InvestorCom LLC, the Fund’s information agent, at (877) 972-0090.

FAQ

What was the tender offer price for High Income Securities Fund (PCF) shares?

The tender offer price was $7.07 per share, which represented 98% of the NAV per common share of $7.21.

How many shares were tendered in PCF's December 2024 tender offer?

A total of 11,885,085 shares were validly tendered in the offer.

What percentage of tendered shares will PCF accept in the December 2024 tender offer?

Due to oversubscription, approximately 90% of the shares tendered by each shareholder will be accepted.

When did PCF's tender offer expire?

The tender offer expired on December 9, 2024.