Clough Global Dividend and Income Fund announces an Equity Buyback for 3,373,469 shares, representing 32.5% of its issued share capital.
October 13, 2017 at 09:30 am IST
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Clough Global Dividend and Income Fund announces a share repurchase program. Under the offer, the company will repurchase up to 3,373,469 shares, representing 32.5% of its outstanding shares. The repurchase price to be paid for the common shares is equal to 98.5% of the net asset value calculated after the expiration date of the offer. The offer is intended to provide shareholders with an alternative source of liquidity for their common shares and to enhance long-term shareholder value. The company intends to use cash on hand and proceeds from the sale of its portfolio securities. The offer will expire on November 10, 2017, unless extended. As of October 6, 2017, the company had 10,379,906 common shares outstanding.
Jay Spinola and Rose DiMartino of Willkie Farr & Gallagher LLP acted as legal advisors, American Stock Transfer & Trust Company, LLC acted as depositary, Okapi Partners LLC acted as information agent and DST Systems, Inc. acted as transfer agent to the company for the offer.
Clough Global Dividend and Income Fund (the Fund) is a closed-end management investment company. The Fund's investment objective is to provide a high level of total return. It seeks to invest at least 80% of its net assets, including any borrowings for investment purposes, in equity securities in both United States and non-United States markets. It invests in a managed mix of equity and debt securities. The Fund may not invest more than 33% of its total assets in securities (including equity and fixed income securities) of governments and companies in emerging markets. The Fund also invest a portion of its assets in real estate investment trusts (REITs). It may not invest more than 10% of its total assets in debt securities rated below investment grade. In addition to shorting to hedge equity risk, the Fund may utilize instruments including, exchange traded funds (ETFs), derivative positions and U.S. Treasury securities. Clough Capital Partners L.P. is the Fund's investment adviser.