Virtus Global Multi-Sector Fund to sell $215 million of shares in IPO

By Toni Weeks

San Diego, Feb. 24 - The Virtus Global Multi-Sector Income Fund said it plans to raise $215 million in an initial public offering.

The newly organized closed-end management investment fund will sell 10.75 million common shares at $20 per share through a group of underwriters led by Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and UBS Securities LLC.

The underwriters have a greenshoe of 1,612,500 shares for additional proceeds of $2.25 million.

Settlement is expected Feb. 28.

According to a 497 filing with the Securities and Exchange Commission, the fund will seek to maximize current income while preserving capital by investing at least 80% of its managed assets in fixed-income securities of U.S. and non-U.S. issuers. Under normal circumstances, assets will be invested in issuers located in at least three countries, including the United States, and will target from 40% to 75% of its investments in issuers located outside of the United States.

David L. Albrycht, Benjamin Caron, Kyle A. Jennings and Daniel Senecal will be the fund's portfolio managers.

Shareholder transaction expenses include a 4.5% sales load and 0.2% offering expenses.

The management fees will be 1.36%. Along with other expenses and interest payments on borrowed funds, the total annual expenses are expected to be 2.24%.

Hartford-based Virtus Investment Advisers, Inc. is the fund's investment adviser.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.