Advent Fund launches rights offering for common shares By Investing.com

The Advent Convertible & Income Fund (NYSE:AVK) has announced a rights offering for its shareholders, according to a recent SEC filing. The offering, effective Monday, allows existing shareholders to purchase additional shares of the fund’s common stock.

On September 20, 2024, the Fund entered into agreements with Advent Capital Management, LLC and UBS Securities LLC to conduct the offering. Shareholders who are registered in the share register at the close of business on that date will receive transferable rights to subscribe for up to 11,533,627 common shares. Each shareholder will be granted one subscription right for each share held, with three rights entitling them to acquire one common share.

Shareholders who fully exercise their subscription rights have the opportunity, under certain conditions, to purchase additional unsubscribed shares. The offer is designed so that even small shareholders with fewer than three shares have the opportunity to subscribe to a full ordinary share.

This rights offering is part of a master registration statement previously filed with the SEC and is accompanied by a prospectus supplement dated September 20 and a prospectus dated September 12. To facilitate the offering, the Fund has also entered into agreements with Equiniti Trust Company, LLC as underwriting agent and EQ Fund Solutions, LLC as information agent.

In other news, Advent Convertible & Income Fund announced that Derek Medina has resigned from his position as trustee due to other professional commitments. The resignation, effective immediately, is not related to any disagreement regarding the Fund’s operations, policies or practices. Overall, the number of members on the Fund’s Board of Directors has been reduced from eight to seven.

This development comes while the fund continues to comply with the regulatory requirements of the Securities Exchange Act of 1934. While Medina’s departures directly reduced the size of the board of directors, they did not indicate further changes in the fund’s management structure or operations.

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