HARTFORD, Conn.--(BUSINESS WIRE)--Virtus Convertible & Income Fund (NYSE: NCV) and Virtus Convertible & Income Fund II (NYSE: NCZ) announced today that their Boards of Trustees approved a 1-for-4 reverse stock split for each Fund effective on or about the start of trading on Monday, February 10, 2025 (“Effective Date”).
The Funds’ common shares will begin trading on a split-adjusted basis with new CUSIPs when the market opens on the Effective Date and one new share will be issued for every four outstanding common shares currently outstanding of NCV and NCZ. Shareholders will be paid in cash for any fractional shares that may result from the reverse stock split (the “Transaction”). Immediately following the Transaction, each shareholder of record will hold the same percentage of their Fund’s outstanding common stock after the Transaction as held immediately prior to the Transaction and will receive the same monthly cash flow from distributions on net asset value, subject to adjustments for the intended cash repurchase of fractional shares resulting from the Transaction.
The Transaction is expected to result in a higher per-share market price for each Fund’s common shares. The Board believes that increasing the per-share market price may broaden the range of potential investors in each Fund’s shares, thereby potentially improving the market for, and liquidity of, the Funds’ common stock. In addition, the Transaction may benefit shareholders and the Funds by reducing certain per-share transaction fees and other administrative costs, such as stock exchange listing fees.
Each Fund will retain its trading symbol but will be assigned a new CUSIP number, which will be announced prior to the Transaction and will become effective on the Effective Date.
Prior to the Transaction, the Funds announced the following distributions on their respective common shares:
Virtus Convertible & Income Fund:
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
NCV |
$0.034 |
December 12, 2024 |
December 30, 2024 |
NCV |
$0.034 |
January 13, 2025 |
January 30, 2025 |
Virtus Convertible & Income Fund II:
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
NCZ |
$0.030 |
December 12, 2024 |
December 30, 2024 |
NCZ |
$0.030 |
January 13, 2025 |
January 30, 2025 |
After the Transaction, the dividend rate will be proportionally increased as follows:
Virtus Convertible & Income Fund:
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
NCV |
$0.136 |
February 13, 2025 |
February 27, 2025 |
NCV |
$0.136 |
March 13, 2025 |
March 28, 2025 |
Virtus Convertible & Income Fund II:
Ticker |
Amount of Distribution |
Ex-Date/Record Date |
Payable Date |
NCZ |
$0.120 |
February 13, 2025 |
February 27, 2025 |
NCZ |
$0.120 |
March 13, 2025 |
March 28, 2025 |
The distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on each Fund’s investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.
About the Funds
Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II each have an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, Inc. is the investment adviser to each fund and Voya Investment Management is the subadviser.
For more information on these funds, contact shareholder services at (866) 270-7788, by email at closedendfunds@virtus.com, or through the Closed-End Funds section on the web at virtus.com.
Fund Risks
An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund’s shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about each fund’s investment objective and risks, please see the funds’ annual report. A copy of the funds’ most recent annual report may be obtained free of charge by contacting “Shareholder Services” as set forth at the end of this press release.
About Virtus Investment Partners, Inc.
Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.
