I continue to see the Term "they" used as the target in scam accusations. "They" are the fund managers for "Us." Tender offers to buy back shares strengthens the value of the remaining shares, simply by dividing the NAV among fewer shares. and thus makes a share more valuable on the market.
"We," being the fund owners, own the shares that have been acquired through tender offers. Those shares can then be held or distributed in the form of reinvested dividends to shareholders at the current value when dividends are paid. The result is increased income to the fund when the market value increases over the tender price, which it has done.
Personally, I think reduction of leverage and tender offers when share prices are in the bottom of a market cycle is right on target.
Everyone had the opportunity to do the same thing individually. After all, isn't buying low the smart move? I guess the "They" sayers didn't double down and reduce their basis by buying at $0.84/share? Too bad, but I'm glad "We" are doing it.
Yes. I reread the offer. The measurement period started on the 19th. I originally thought the tenders were automatic once a certain amount of time past, but that is not the case.
If the SP raises above the 10% discount in the current time period then the offer is void? It's an average though, so not every day counts.
<if a Fund’s common stock trades at an average daily discount to net asset value (“NAV”) of greater than 10% during a 12-week measurement period, the Fund will conduct a tender offer for between 5% and 20% of its outstanding common stock at a price equal to 98% of its NAV determined on the day the tender offer expires.>