Source Capital Stock Price, News & Analysis

Source Capital (NYSE: SOR) announced that its Board of Directors has approved maintaining the Fund's regular monthly distribution rate for April and May 2025. The decision reflects the Fund's commitment to providing consistent distributions to its shareholders.

Marlton Partners, owning 4.6% of 180 Degree Capital Corp. (TURN), has expressed serious concerns about TURN's merger agreement with Mount Logan Capital. The key issues highlighted include:

1. The proposed transformation from a closed-end fund to an alternative asset and insurance solutions company, removing '40 Act protections

2. The Board's failure to provide shareholders an option to tender at net asset value (NAV)

3. The immediate rejection of Source Capital's merger proposal valued at 101% of NAV without any engagement

Marlton questions whether the Board's decisions serve shareholders' interests, particularly noting management's continued employment with Mount Logan post-merger. In response, Marlton has nominated three candidates for election to TURN's Board at the 2025 Annual General Meeting.

Source Capital (NYSE: SOR) has expressed disappointment over 180 Degree Capital Corp. (NASDAQ: TURN)'s swift rejection of its non-binding initial merger proposal within three business days, without engaging in any dialogue to maximize shareholder value. Despite the rejection, Source Capital notes that the market responded positively to their proposal, and at least one major TURN shareholder has publicly supported engagement between the companies. Source Capital maintains its commitment to pursuing a potential merger and seeks constructive dialogue with TURN's Board of Directors.

Marlton Partners, owning 4.6% of 180 Degree Capital Corp (NASDAQ: TURN), has issued a statement urging TURN's Board to engage with Source Capital's (NYSE: SOR) merger proposal announced on January 24, 2025. The merger offer values TURN at 101% of its net asset value per share.

Marlton emphasizes that the market's positive response to Source Capital's offer reflects shareholders' desire to eliminate the trading discount. Previously, on December 17, 2024, Marlton nominated three independent candidates - James Elbaor, Gabi Gliksberg, and Aaron Morris - for election to TURN's Board at the 2025 Annual General Meeting, citing concerns about TURN's chronic underperformance and large discount to net asset value.

Source Capital (NYSE: SOR) has proposed a merger with 180 Degree Capital Corp. (NASDAQ: TURN) in an all-stock transaction. The proposal values TURN at 101% of its net asset value per share. SOR, managed by First Pacific Advisors (FPA) which oversees $27 billion in assets, offers several benefits including:

- Premium to NAV for TURN shareholders
- Reduced NAV discount (SOR trades at ~1-4% discount)
- Larger market cap of approximately $390 million (vs TURN's $38 million)
- Lower expense ratio of 0.93% (vs TURN's 8.3%)
- Lower management fee of 0.675% (vs TURN's 4.9%)
- Distribution rate of 5.9% per annum
- Strong performance with >8% annual NAV growth over past five years

The proposal is subject to due diligence, board approval, and definitive documentation.

Source Capital (NYSE: SOR) has announced its regular monthly distribution for March 2025. The Board of Directors has approved maintaining the current distribution rate at $0.2083 per common share. The distribution will be paid to shareholders of record as of March 14, 2025, with the payment date set for March 31, 2025.

Source Capital (NYSE: SOR) reported that its average discount to NAV dropped below 10% during the 2024 measurement period, reaching less than 1% on December 31, 2024 - its smallest discount since 2008. As a result, no tender offer will occur for 2024.

The Board approved extending the Discount Management Program through 2026, maintaining the condition that if shares trade at an average discount to NAV exceeding 10% during the 2026 measurement period, the Fund will conduct a tender offer for 10% of outstanding shares at 98% of NAV per share. Portfolio managers, officers, and Board members won't participate in potential 2025 or 2026 tender offers.

The Fund continues its Stock Repurchase Program and has increased its private credit investments, which now represent approximately 15.5% of NAV, with combined invested and committed capital reaching 23.4% of NAV as of January 14, 2025.

Source Capital (NYSE: SOR) announced a special distribution of $2.65841 per common share, payable on January 9, 2025, to shareholders of record as of December 30, 2024. The distribution was declared due to substantial capital gains realized during 2024. This special year-end distribution helps the Fund comply with Internal Revenue Code requirements for regulated investment companies to distribute substantially all net investment income and realized capital gains to shareholders by December 31 to avoid federal excise tax.

Source Capital (NYSE: SOR) announced that its Board of Directors has approved a special distribution for December 2024. The distribution will be payable on January 9, 2025, to shareholders of record as of December 30, 2024. The final distribution rate is expected to be announced around December 27, 2024, and is estimated to be approximately 1%-3% of net asset value.