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Advent Convertible & Income Fund (NYSE:AVK) has announced the initiation of a rights offering to its shareholders, according to a recent SEC filing. The offering, effective as of Monday, allows existing shareholders the opportunity to purchase additional common shares of the fund.
On September 20, 2024, the fund entered into agreements with Advent Capital Management, LLC and UBS Securities LLC to manage the offering. Shareholders as of the close of business on that date are eligible to receive transferable rights to subscribe for up to 11,533,627 common shares. Each shareholder will receive one right for every share they own, with every three rights enabling the purchase of one new common share.
Shareholders who fully exercise their rights will also have the chance, subject to certain conditions, to acquire additional shares that may be left unsubscribed. The offering is designed to allow even small shareholders, owning less than three shares, the ability to subscribe for a full common share.
This rights offering is part of a shelf registration statement previously filed with the SEC and is accompanied by a prospectus supplement, dated September 20, and a prospectus, dated September 12. The fund has also entered into agreements with Equiniti Trust Company, LLC and EQ Fund Solutions, LLC to facilitate the offering as subscription and information agents, respectively.
In other recent news, Advent Convertible & Income Fund reported that Derek Medina has resigned from his trustee role due to other professional commitments. The resignation, effective immediately, did not stem from disagreements with the fund's operations, policies, or practices. Following this change, the fund's Board of Trustees has reduced its members from eight to seven.
This development occurs as the fund continues to comply with the Securities Exchange Act of 1934's regulatory framework. Medina's resignation directly resulted in the board size reduction but does not indicate further changes to the fund's management or operational structure.
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