NEW YORK, July 5, 2018 /PRNewswire/ -- Royce Value Trust, Inc. (RVT) (the "Fund") is pleased to announce the successful completion of its common stock rights offering (the "Offer"), which expired on July 3, 2018. Fund stockholders received one non-transferable right (each, a "Right") for each whole share of common stock held of record as of May 30, 2018, rounded up to the nearest number of Rights evenly divisible by ten. Pursuant to the terms of the Offer, stockholders were entitled to subscribe for one new share of common stock for each ten Rights held. Stockholders who fully exercised their Rights were also entitled to subscribe for those shares not purchased by other stockholders in connection with the Offer.
The subscription price for each newly issued share of common stock was determined to be $15.33, which under the terms of the Offer was equal to the lower of: (i) $0.25 below the last reported sale price per share on the New York Stock Exchange on July 3, 2018 (i.e., $15.58 per share); or (ii) the net asset value per share on July 3, 2018 (i.e., $17.39 per share). Based on preliminary results provided by the Fund's subscription agent, subscription requests for over 7.1 million shares were received, with gross proceeds to the Fund being expected to exceed $109 million. It is currently anticipated that such shares will be issued on or about July 9, 2018.
The final subscription price of $15.33 per share is lower than the estimated subscription price of $16.41 per share. Pursuant to the terms of the Offer, excess payments received from stockholders in connection with the Offer will be refunded to such stockholders as soon as reasonably practicable under the circumstances.
Stockholders who hold their Fund shares through a financial intermediary are encouraged to contact their financial advisors regarding the specifics of their account. Stockholders who are record owners may contact the Fund at (800) 221-4268 with any questions about the Offer.
The Fund is a diversified, closed-end management investment company. Its investment goal is long-term capital growth. The Fund normally invests at least 65% of its assets in the equity securities of small- and micro-cap companies, generally those with stock market capitalizations ranging from $100 million to $3 billion, that Royce & Associates, LP ("Royce"), the Fund's investment adviser, believes are trading below its estimate of their current worth. The Fund also may invest up to 25% of its assets in securities of issuers headquartered outside the United States. In addition, the Fund may invest a portion of its assets in companies with stock market capitalizations in excess of $3 billion. In managing the Fund's assets, Royce uses a core approach that combines multiple investment themes and offers wide exposure to small- and micro-cap stocks by investing in companies with high returns on invested capital or those with strong fundamentals and/or prospects trading at what Royce believes are attractive valuations.
The information contained herein regarding the Fund and the Offer is qualified in all respects by the more specific information set forth in the Fund's prospectus dated May 30, 2018. Investors should carefully consider the Fund's investment objective, risks, charges, and expenses before investing. Please carefully read the Fund's disclosure documents before investing.
An investment in the Fund is subject to certain risks, including market risk. Shares of closed-end investment companies also frequently trade at a discount from their NAV per share. The market price of the Fund's shares of common stock is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below, or above its NAV per share.
About Royce & Associates, LP: Royce & Associates, LP is a small-cap equity specialist offering distinct investment strategies with unique risk/return profiles designed to meet a variety of investors' needs. For more than 40 years, our strategies have focused on active, risk-conscious investing driven by deep, fundamental company research. Chuck Royce, the firm's founder and a pioneer of small-cap investing, enjoys one of the longest tenures in the industry. Royce & Associates, LP is a subsidiary of Legg Mason Inc. (LM).