Special Opportunities Fund Announces Year-End Distribution Payable in Cash and Stock

Special Opportunities Fund (NYSE:SPE) announced a $0.70 per share year-end distribution to holders of record on December 29, 2025, payable January 30, 2026 in cash and/or newly issued common stock.

Rhea-AI Summary

Special Opportunities Fund (NYSE:SPE) announced a $0.70 per share year-end distribution to holders of record on December 29, 2025, payable January 30, 2026 in cash and/or newly issued common stock. The Fund said substantially the distribution will be realized long-term capital gains and taxable in calendar year 2025, and the distribution is being made to avoid excise taxes.

Stockholders may elect cash or stock via an election form due January 16, 2026 (5:00 p.m. ET); unpaid elections default to stock. Cash will be limited to 20% of the total distribution, with at least 80% paid in shares. Share issuance will use the VWAP for Jan 20–22, 2026. Tax reporting will appear on Form 1099-DIV after year-end.

Positive

• Distribution of $0.70 per share announced
• Cash option available up to 20% of total distribution
• Distribution structured to avoid excise taxes for the Fund

Negative

• At least 80% of distribution paid in stock, creating dilution risk
• Distribution is expected to be taxable as long-term capital gains in 2025
• Stockholders who do not elect will be deemed to receive stock

Argus Dec 19 session

+0.72% close to close Open Argus

Details

News Market Reaction – SPE

On Dec 19, the day this news came out, SPE closed 0.72% above the previous close.

Data tracked by StockTitan Argus for the Dec 19 session.

Key Figures

Year-end distribution: $0.70 per share Cash portion cap: 20% of total distribution Stock portion floor: Not less than 80% +5 more

Year-end distribution

$0.70 per share

Common stockholders of record on December 29, 2025

Cash portion cap

20% of total distribution

Aggregate cash paid across all stockholders

Stock portion floor

Not less than 80%

Remainder of distribution paid in common shares

Record date

December 29, 2025

Determines eligible common stockholders for $0.70 distribution

Payment date

January 30, 2026

Scheduled date cash and stock distribution will be paid

Election deadline

January 16, 2026 5:00 p.m. ET

Deadline for stockholders to elect cash or stock

Pricing dates

January 20–22, 2026

VWAP period to determine stock distribution share count

Tax year impact

Calendar year 2025

Distribution expected taxable as realized long-term capital gains

Historical Context

5 past events · Latest: Nov 20

5 events

1. Nov 20

   Annual meeting notice

   24h Move

   -0.8%

   Announced details and logistics for the December 11, 2025 annual meeting.

2. Oct 30

   Preferred dividend

   24h Move

   +0.7%

   Declared cash dividend of $0.171875 per share on 2.75% Preferred C.

3. Oct 02

   Q4 2025 distributions

   24h Move

   +0.0%

   Set three monthly managed-plan distributions at 8% annualized for Q4 2025.

4. Sep 09

   Preferred dividend

   24h Move

   +0.1%

   Declared quarterly $0.171875 dividend on 2.75% Convertible Preferred C.

5. Jul 08

   Q3 2025 distributions

   24h Move

   -0.2%

   Announced Q3 monthly distributions, maintaining 8% annual rate on $16.47 NAV.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

volume-weighted average trading price, Form 1099-DIV

2 terms

volume-weighted average trading price technical

"will be based on the volume-weighted average trading price per share of the Fund’s common stock"

Volume-weighted average trading price (VWAP) is the average price of a stock over a trading period, where each trade’s price is weighted by how many shares changed hands, so big trades move the average more than small ones. Investors use VWAP as a benchmark to tell whether they bought or sold at a good price compared with the market’s trading activity—like checking if your grocery bill was close to the store’s typical daily average when many customers shopped.

Form 1099-DIV regulatory

"will be provided on a Form 1099-DIV issued after the end of the year"

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Dec. 19, 2025 (GLOBE NEWSWIRE) -- Special Opportunities Fund, Inc. (NYSE: SPE) (the “Fund”) today announced a year-end distribution to common stockholders of record as of December 29, 2025 of $0.70 per share payable on January 30, 2026 in stock and cash. Substantially the entire distribution is expected to consist of realized long-term capital gains and to be taxable to stockholders in calendar year 2025. The purpose of the year-end distribution is to avoid excise taxes payable by the Fund.  

The distribution will be paid in cash or newly issued shares of the Fund’s common stock at the election of stockholders. An election form will be sent to stockholders promptly following the Record Date. Election forms must be returned to, and received by, the Fund no later than 5:00 p.m. Eastern Time on January 16, 2026. Stockholders that do not make an election will be deemed to have elected to receive the distribution in stock. The total amount of cash distributed to stockholders will be limited to 20% of the total distribution. The remainder of the distribution (not less than 80%) will be paid in shares of the Fund’s common stock. The exact distribution of cash and stock to a stockholder will depend upon such stockholder’s election as well as elections of other stockholders, subject to a pro-rata aggregate 20% cash limitation.

The number of shares of common stock to be issued to stockholders receiving all or a portion of the distribution in shares of common stock will be based on the volume-weighted average trading price per share of the Fund’s common stock on January 20, 21, and 22, 2026.

For tax reporting purposes the actual composition of the total amount of distributions made (or deemed made) by the Fund for 2025 will be provided on a Form 1099-DIV issued after the end of the year.

Contacts

For information, please contact:
Thomas Antonucci, Bulldog Investors LLP (tantonucci@bulldoginvestors.com)

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the amount and pay date of Special Opportunities Fund's (SPE) year-end distribution?

SPE announced a $0.70 per share distribution payable on January 30, 2026 to holders of record on December 29, 2025.

How can SPE (NYSE:SPE) stockholders elect cash or stock for the January 2026 distribution?

Stockholders will receive an election form and must return it by January 16, 2026 (5:00 p.m. ET) to choose cash or shares.

What portion of SPE's distribution will be available in cash versus stock?

Cash is limited to 20% of the total distribution; the remainder (not less than 80%) will be paid in shares.

How will SPE determine the share price for stock distributions in January 2026?

Shares issued will be based on the volume-weighted average price of SPE common stock on Jan 20, 21, and 22, 2026.

Will SPE's year-end distribution be taxable to shareholders for 2025?

Yes; substantially the entire distribution is expected to consist of realized long-term capital gains and be taxable in calendar year 2025.

What tax form will SPE provide for the 2025 distribution reporting?

The Fund will report the composition of distributions on a Form 1099-DIV issued after the end of 2025.