Total Return Securities Fund Announces Self-Tender Offer and Rights Offering Plans

Total Return Securities Fund, Inc. affirmed its intention to authorize a self-tender offer to purchase at least 15% of its outstanding shares at a price of at least 98% of net asset value per share. The board is also contemplating a rights offering to purchase additional shares and limit potential increases in the expense ratio. The number of shares to be purchased in the self-tender offer is expected to be between 15% and 25% of the outstanding shares post-rights offering.

Total Return Securities Fund, Inc. (NYSE: SWZ) has affirmed its intention to authorize a self-tender offer to purchase at least 15% of its outstanding shares at a price of at least 98% of net asset value per share. The Board of Directors has also announced that it is contemplating a rights offering to existing stockholders prior to the tender offer. This strategic move aims to mitigate the potential increase in the Fund's expense ratio that could result from the reduction in the asset base following the tender offer.

The rights offering, if implemented, would allow existing shareholders to purchase additional common stock at a discount to the net asset value per share. The subsequent self-tender offer would then target between 15% and 25% of the post-rights offering outstanding shares. This calibrated approach demonstrates the Fund's attempt to balance providing liquidity through the tender offer while maintaining operational efficiency.

The Board acknowledges the dilution risk inherent in rights offerings, which typically involve issuing shares at a discount to net asset value. This transparency indicates that the Board is carefully weighing shareholder interests. The coordinated approach of potentially raising capital before returning capital shows sophisticated balance sheet management, although the effectiveness of these transactions depends on shareholder participation rates.

The Fund will file a Tender Offer Statement on Schedule TO with the SEC if the tender offer commences. This statement will contain important information, including the terms and conditions of the tender offer, which stockholders should read carefully before making a decision.

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