BlackRock Core Bond Trust Completes Successful Rights Offering, Expects to Raise $166M

BlackRock Core Bond Trust has completed its transferable rights offer, which was over-subscribed. The offer entitled rights holders to subscribe for up to 18.056 million shares at $9.22 per share. The fund received approximately $166 million in proceeds and plans to invest the funds in accordance with its objective and policies. The shares issued pursuant to the offer will be entitled to receive the monthly distribution expected to be payable in July.

BlackRock Core Bond Trust (NYSE: BHK) has successfully completed its transferable rights offer, which was over-subscribed. The offer, which expired on June 18, 2025, allowed rights holders to subscribe for up to 18.056 million shares of the Fund’s common shares of beneficial interest at a final subscription price of $9.22 per share [1].

The subscription price was determined based on a formula equating to 95% of the average of the last reported sales price per Common Share on the New York Stock Exchange (NYSE) on the Expiration Date and each of the four immediately preceding trading days. The high investor demand led to the over-subscription of the Offer, and the Fund exercised its over-subscription privilege. Shareholders who fully exercised their rights on the Record Date of May 27, 2025, were able to subscribe for additional Common Shares pro-rata based on the number of rights originally issued to them [2].

The successful completion of the Offer is expected to result in the issuance of more than 18.0 million Common Shares, generating anticipated proceeds of approximately $166 million for the Fund. BlackRock Advisors, LLC, the Fund’s investment adviser, has agreed to pay all expenses related to the Offer, ensuring that the Fund receives the entire proceeds [1].

The Fund intends to invest the proceeds in accordance with its investment objective and policies. Shares issued pursuant to the Offer will be entitled to receive the monthly distribution expected to be payable in July [1].

References:
[1] https://www.businesswire.com/news/home/20250620890939/en/BlackRock-Core-Bond-Trust-BHK-Announces-Results-of-its-Over-subscribed-Rights-Offering
[2] https://www.stocktitan.net/news/BHK/black-rock-core-bond-trust-bhk-announces-results-of-its-over-2q7acu0zjfif.html