BlackRock Multi-Sector Income Trust raises $186M
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Rhea-AI Filing Summary
BlackRock Multi-Sector Income Trust completed an over-subscribed transferable rights offering that allowed holders to subscribe for up to 14,265,677 new common shares at a final subscription price of $13.01 per share, set at 90% of net asset value as of September 9, 2025. Due to strong demand, the Fund is exercising the over-subscription privilege, allocating additional shares pro rata to record date shareholders who fully exercised their rights and requested more shares, and will refund any excess payments. The transaction is expected to issue more than 14 million new shares and generate approximately $186 million in proceeds, all of which go to the Fund because its adviser, BlackRock Advisors, LLC, is covering the offering expenses. The Fund plans to invest these proceeds in line with its stated investment objective and policies, and the newly issued shares are expected to receive the monthly distribution payable in October.
Insights
Over-subscribed rights offering brings about $186M of new capital into the fund.
The rights offer by BlackRock Multi-Sector Income Trust was fully utilized and over-subscribed, indicating that existing shareholders chose to commit additional capital at the $13.01 subscription price, calculated as 90% of net asset value on September 9, 2025. Rights were issued to shareholders of record as of August 19, 2025, and those who fully exercised could request additional shares via the over-subscription privilege.
The Fund expects to issue more than 14 million new common shares, with anticipated proceeds of approximately $186 million. Because BlackRock Advisors, LLC has agreed to pay all expenses of the offering, the Fund receives the full proceeds to deploy according to its stated investment objective and policies. Newly issued shares are expected to participate in the monthly distribution payable in October 2025, aligning their income treatment with existing shares.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was the subscription price in the BlackRock BIT rights offering?
The final subscription price was $13.01 per common share, calculated as 90% of the Fund’s net asset value as of September 9, 2025.
How much capital does the BlackRock BIT rights offering raise for the fund?
The Offer is expected to generate anticipated proceeds of approximately $186 million, with the Fund receiving the entire amount because BlackRock Advisors, LLC agreed to pay all expenses related to the Offer.
Who was eligible to participate in the BlackRock BIT over-subscription privilege?
The over-subscription privilege was available to shareholders of record as of August 19, 2025 who fully exercised all rights issued to them and then requested additional shares, subject to limitations and pro-rata allocation.
Who pays the expenses of the BlackRock BIT rights offering?
BlackRock Advisors, LLC, the Fund’s investment adviser, has agreed to pay all expenses related to the Offer, allowing the Fund to retain the full gross proceeds of approximately $186 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Contact:
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BlackRock Multi-Sector Income Trust (BIT) Announces Results of its Over-subscribed Rights Offering
New York, September 9, 2025 - BlackRock Multi-Sector Income Trust (NYSE: BIT) (the “Fund”) today announced the successful completion of its transferable rights offer (the “Offer”) which expired on September 9, 2025 (the “Expiration Date”). The Offer entitled rights holders to subscribe for up to an aggregate of 14,265,677 shares of the Fund’s common shares of beneficial interest, par value of $0.001 per share (each, a “Common Share”). The final subscription price of $13.01 per Common Share was determined based upon the formula equal to 90% of the net asset value as of 9/9/2025.
As a result of high investor demand, the Offer was over-subscribed, and the Fund will exercise the over-subscription privilege. Pursuant to the over-subscription privilege, shareholders of the Fund as of August 19, 2025 (the “Record Date”) who fully exercised all rights issued to them were able to subscribe at the price indicated above, subject to certain limitations and allotment, for any additional Common Shares which were not subscribed for by other holders of rights. The shares subscribed for pursuant to the over-subscription privilege of the Offer will be allocated pro-rata among those fully exercising Record Date shareholders who over-subscribed based on the number of rights originally issued to them by the Fund. The Fund will return to those investors that submitted over-subscription requests the full amount of their excess payments as soon as practicable.
| “We are pleased with the results of the BIT rights offering. In our view, broader fixed income credit markets continue to exhibit resilient fundamentals. Overall, risk-adjusted yields are attractive for fixed income closed-end funds and combined with the potential for lower financing costs in the coming quarters, we believe we can offer increased income and continue paying stable monthly distributions to our shareholders.” – Scott MacLellan, Portfolio Manager for the Fund. |
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The Offer is expected to result in the issuance of more than 14 million Common Shares (including Common Shares subscribed pursuant to the over-subscription privilege and notices of guaranteed delivery), resulting in anticipated proceeds to the Fund of approximately $186 million. The Fund will receive the entire proceeds of the Offer since BlackRock Advisors, LLC, the Fund’s investment adviser, has agreed to pay all expenses related to the Offer. The Fund intends to invest the proceeds of the Offer in accordance with its investment objective and policies.
Shares issued pursuant to the Offer will be entitled to receive the monthly distribution expected to be payable in October.
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The information in this press release is not complete and is subject to change. This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. The Fund’s prospectus supplement and accompanying prospectus will contain this and additional information about the Fund and additional information about the Offer, and should be read carefully before investing.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
Availability of Fund Updates
BlackRock will update performance and certain other data for the Fund on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Fund. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this release.
Forward-Looking Statements
This press release, and other statements that BlackRock or the Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those
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anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
Annual and Semi-Annual Reports and other regulatory filings of the Fund with the Securities and Exchange Commission (“SEC”) are accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Fund. The information contained on BlackRock’s website is not a part of this press release.
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