HARTFORD, Conn., March 20, 2017 /PRNewswire/ -- The Zweig
Fund, Inc. (NYSE: ZF) today announced that it will commence a
tender offer to purchase up to 5 percent of its outstanding shares
under the terms of a tender offer program that was originally
announced on April 5, 2016.
The fund will purchase up to 5 percent of its outstanding shares
at a price equal to 98 percent of its net asset value (NAV) per
share as of the close of regular trading on the New York Stock
Exchange on the date the tender offer expires. If more than 5
percent of the fund's outstanding shares are tendered, the fund
will purchase shares from tendering stockholders on a pro-rata
basis.
This tender offer follows tender offers that were completed in
May and December 2016 for 15 percent
and 5 percent, respectively, of the fund's then outstanding shares.
The fund had previously announced it would commence the current
tender offer within six months after the completion of the December
tender if the fund's average trading discount, calculated as the
percentage difference between NAV and the volume-weighted average
price on each trading day, was more than 8 percent for a specified
12-week period. That condition was met as of March 17, 2017.
The tender offer is being made on the terms and subject to the
conditions set forth in the Issuer Tender Offer Statement and
related Letter of Transmittal that will be filed with the
Securities and Exchange Commission. The tender offer is expected to
commence on May 26, 2017 and
terminate at 11:59 p.m. (Eastern) on
June 23, 2017, unless extended. The
pricing date will also be June 23,
2017, unless the tender offer is extended.
Further information about the tender offer will be announced by
a future press release. Additional terms and conditions of the
tender offer will be set forth in the fund's offering materials.
This announcement is not a recommendation, an offer to purchase, or
a solicitation of an offer to sell shares of the fund. The fund has
not yet commenced the tender offer described in this release. Any
tender offer will be made only by an offer to purchase, a related
letter of transmittal, and other documents that will be filed with
the Securities and Exchange Commission (SEC) as exhibits to a
tender offer statement on Schedule TO and will be available free of
charge at the SEC's website at www.sec.gov. Shareholders should
read the offer to purchase and tender offer statement on Schedule
TO and related exhibits when those documents are filed and become
available as they will contain important information about the
tender offer. The fund will also make available, without charge,
the offer to purchase and the letter of transmittal.
About the Fund
The Zweig Fund is a diversified
closed-end fund whose investment objective is capital appreciation,
with current income as a secondary objective. Virtus Investment
Advisers is the adviser to the fund and Duff & Phelps
Investment Management and Newfleet Asset Management are
subadvisers. The fund currently targets an allocation of 60 percent
equities, incorporating Duff & Phelps' global investments in
owners/operators of infrastructure in the communications, utility,
energy, and transportation industries, and 40 percent fixed income,
utilizing Newfleet's multi-sector strategy that is designed to
capitalize on opportunities across undervalued areas of the fixed
income markets. The fund also pursues an options income strategy
whereby it purchases and sells out-of-the money puts and calls,
creating an options spread.
Effective April 3, Virtus Total
Return Fund (NYSE: DCA) will merge into The Zweig Fund and The
Zweig Fund will change its name to Virtus Total Return Fund Inc. in
connection with the merger. It will retain the "ZF" ticker symbol.
Virtus Investment Advisers will remain as the adviser to the fund
and Duff & Phelps Investment Management and Newfleet Asset
Management will remain as subadvisers.
For more information about the fund, contact Shareholder
Services at (866) 270-7788, by email at closedendfunds@virtus.com,
or through the closed end fund section on the web at
www.virtus.com.
Fund Risks
An investment in a fund is subject to risk,
including the risk of possible loss of principal. A fund's shares
may be worth less upon their sale than what an investor paid for
them. Shares of closed-end funds may trade at a discount to their
net asset value.
Forward-Looking Information
This press release
contains statements that are, or may be considered to be,
forward-looking statements. All statements that are not historical
facts, including statements about beliefs or expectations, are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995. These statements may be
identified by such forward-looking terminology as "expect,"
"estimate," "plan," "intend," "believe," "anticipate," "may,"
"will," "should," "could," "continue," "project," or similar
statements or variations of such terms. Forward-looking statements
are based on a series of expectations, assumptions, and
projections; are not guarantees of future results or performance;
and may involve risks and uncertainty. All forward-looking
statements are as of the date of this release only; the fund
undertakes no obligation to update or review any forward-looking
statements. The fund can give no assurance that such expectations
or forward-looking statements will prove to be correct. Actual
results may differ materially. You are urged to carefully consider
all such factors.
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SOURCE The Zweig Fund, Inc.