Virtus Total Return Fund Announces Tender Offer Results.

Virtus Total Return Fund has announced preliminary results of its tender offer to acquire 10% of its outstanding shares. Approximately 20.4 million shares were tendered, making the offer oversubscribed. The relative number of shares purchased from each tendering shareholder will be prorated, and the purchase price is 98% of the Fund's net asset value per share on February 6, 2025, equal to $6.4386 per share.

The Virtus Total Return Fund, a well-known closed-end fund, recently announced preliminary results of its tender offer to acquire 10% of its outstanding shares [1]. With approximately 20.4 million shares tendered, the offer was oversubscribed, leading to a prorated purchase of shares from each tendering shareholder [1].

The purchase price for the tendered shares was set at 98% of the Fund's net asset value per share on February 6, 2025, which equates to $6.4386 per share [1]. This price represents a slight premium to the Fund's net asset value as of May 2, 2024, indicating a positive sentiment towards the Fund's investment prospects.

The oversubscription of the tender offer is a testament to the confidence investors have in the Virtus Total Return Fund. This level of interest could potentially lead to increased demand for the Fund's shares in the secondary market, potentially driving up the price further [2].

The Virtus Total Return Fund is a diversified closed-end fund with a primary investment objective of capital appreciation and a secondary objective of income [1]. The Fund's investment advisor is Virtus Investment Advisers, Inc., with subadvisory support provided by Duff & Phelps Investment Management Co. and Newfleet Asset Management [1].

It is essential to note that investing in a fund, including the Virtus Total Return Fund, carries inherent risks. An investment in a fund may result in a loss of principal, and the fund's shares may trade at a premium or discount to their net asset value [1]. Prospective investors are encouraged to carefully review the Fund's annual report and consult with a financial advisor before making any investment decisions.

In conclusion, the Virtus Total Return Fund's oversubscribed tender offer reflects the positive sentiment towards the Fund and its investment prospects. With a primary focus on capital appreciation and a secondary objective of income, the Fund offers investors an opportunity to diversify their portfolios and potentially achieve attractive returns.

References:
[1] Virtus Total Return Fund Inc. (2024, May 2). Virtus Total Return Fund Inc. Announces Preliminary Results of Tender Offer. Business Wire. https://www.businesswire.com/news/home/20240502005976/en/
[2] Investopedia. (2022, December 13). What Is a Tender Offer? How Does It Work? https://www.investopedia.com/terms/t/tenderoffer.asp