NFJ's Tender Offer Results

What happened: The Virtus Dividend, Interest & Premium Strategy Fund accepted 23,241,811 shares in its tender offer, 25% of outstanding shares, at $15.9192, which was 99% of NAV. Key numbers: 28,811,699 shares tendered, proration factor 80.67%. About 31% of shares were tendered versus a 50% base case. Why it matters: Tender participation came in far below the author's base case even though Saba Capital alone held about 11% of the fund going into the offer, and the fund's discount widened after expiry.

The Virtus Dividend, Interest & Premium Strategy Fund accepted 23,241,811 shares in its tender offer, 25% of outstanding shares, at $15.9192, which was 99% of NAV.

Tender participation came in far below the author's base case even though Saba Capital alone held about 11% of the fund going into the offer, and the fund's discount widened after expiry.