Rivus Bond Fund (NYSE:BDF) (the “Fund”) announced today that its transferable rights offering (the “Rights Offering”), which commenced on July 15, 2009 (the “Record Date”), expired today, August 7, 2009 (the “Expiration Date/Pricing Date”) and that the subscription price (the “Subscription Price”) is $15.77 per share of beneficial interest of the Fund (“Share”). Pursuant to the terms of the Rights Offering, the Subscription Price represents 86% of the net asset value per Share on the Expiration Date/Pricing Date. The Fund added that the Rights Offering was successful and was oversubscribed.
Shareholders of record on the Record Date (“Record Date Shareholders”) received one transferable right (“Right”) for each Share owned on the Record Date. The Rights entitled the holder to acquire one Share at the subscription price for every three Rights held (the “Primary Subscription”). In addition, any Record Date Shareholder who fully exercised all Rights initially issued to him, her or it was entitled to subscribe for Shares which were not otherwise subscribed for by others in the Primary Subscription (the “Over-Subscription Privilege”). The Rights Offering entitled Record Date Shareholders to subscribe for an aggregate of 1,650,893 Shares.
On or about August 19, 2009, the Fund’s subscription agent, The Colbent Corporation (the “Subscription Agent”), will send each exercising shareholder or his or her nominee a confirmation showing (i) the number of Shares acquired pursuant to the Primary Subscription; (ii) the number of Shares, if any, acquired pursuant to the Over-Subscription Privilege; (iii) the Subscription Price and total purchase price for the Shares; and (iv) any additional amount payable by such shareholder to the Fund resulting from the estimated subscription price of $15.35 per Share, announced on the Record Date, being less than the Subscription Price of $15.77 per Share. Any additional payment required from a shareholder must be received by the Subscription Agent prior to 5:00 p.m., Eastern Time, on September 2, 2009. Shares acquired by each shareholder will be issued after payment for all the Shares subscribed for has cleared. Participating shareholders who hold through brokers, banks or other nominees will receive their Shares in accordance with the procedures of those nominees.
Boenning & Scattergood, Inc. is acting as Dealer Manager for the Rights Offering.
Investments in the Fund involve risks. Shares of closed-end funds frequently trade at a discount to NAV. The price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above NAV. Before investing in the Fund, investors should carefully consider the investment objective, risks, and charges and expenses of the Fund.
Rivus Bond Fund is a closed-end, diversified management investment company with approximately $87 million in total assets whose primary investment objective is to seek a high rate of return, primarily from interest income and trading activity, from a portfolio principally consisting of debt securities. The Fund is managed by MBIA Capital Management Corp., a wholly-owned subsidiary of MBIA Asset Management, LLC, which in turn is wholly-owned by MBIA, Inc. Shares of MBIA, Inc. are listed on the NYSE, and trade under the symbol “MBI”.
This announcement is not an offer to sell these securities and the Fund is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.The Rights Offering will be made only by means of a prospectus.
For further information contact the Information Agent, Georgeson Inc., at (888) 293-6908.
Contacts:
Georgeson Inc.
Christopher M. Hayden, 212-440-9850