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Special Opportunities Fund to offer $33.38 million of 3% convertibles
By Angela McDaniels
Tacoma, Wash., Dec. 7 - Special Opportunities Fund, Inc. plans to issue up to $33.38 million of 3% convertible preferred stock, series A, through a rights offering, according to an N-2 filing with the Securities and Exchange Commission.
Shareholders will receive one transferable right for every 10 shares held. Each right will entitle the holder to purchase one convertible at par of $50.00. The company will issue up to 667,645 convertibles.
The conversion ratio is three shares of common stock per convertible.
The company will be able to force conversion if the net asset value of its common stock reaches $20.00 per share. Its shares closed at $15.05 (NYSE: SPE) on Wednesday.
All of the convertibles will be redeemed after five years.
The exact expiration date of the rights offering has not been set, but the company expects it to be after the beginning of the year.
Shareholders who elect to purchase the maximum amount of convertibles that they are entitled to will also be entitled to subscribe, subject to allotment, to purchase additional convertibles, if any, that are not purchased by the company's other shareholders.
The rights will be admitted for trading on the New York Stock Exchange. The symbol is expected to be "SPE RT."
The company plans to apply to list the convertibles on NYSE under the symbol "SPE Pr."
The proceeds of the offering will be invested according to the fund's investment objectives.
The issuer is a closed-end, diversified management investment company based in Milwaukee. Its investment objective is total return through capital appreciation and current income. Its investment adviser is Brooklyn Capital Management LLC.
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