By Cristal Cody
Chicago, April 12 – RiverNorth Opportunities Fund, Inc. priced $85 million, or 3.4 million shares, of 6% perpetual preferreds (A1) on Tuesday, according to information from a market source.
Dividends on the $25-par series A stock will be payable quarterly, starting May 15, according to an earlier 424B2 filing with the Securities and Exchange Commission.
The dividend came on top of initial talk in the 6% area.
The shares are redeemable at the fund’s option on or after May 15, 2027.
There is a $12.75 million 30-day over-allotment option for the underwriters.
UBS Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the underwriters.
RiverNorth plans to use the proceeds for investments, to repay borrowings under its credit facility and for general working capital purposes.
The company intends to list the preferreds on the New York Stock Exchange under the symbol “RIVPrA.”
RiverNorth is a Chicago-based closed-end management investment company.
| Issuer: | RiverNorth Opportunities Fund, Inc.
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| Amount: | $85 million, or 3.4 million shares
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| Greenshoe: | $12.75 million
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| Issue: | Series A preferred stock
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| Maturity: | Perpetual
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| Bookrunners: | UBS Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
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| Counsel to issuer: Dechert LLP and McDermott Will & Emery LLP
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| Counsel to bookrunners: | Skadden, Arps, Slate, Meagher & Flom LLP
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| Dividend: | 6%
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| Call features: | Starting May 15, 2027
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| Trade date: | April 12
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| Settlement date: | April 20
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| Ratings: | Moody’s: A1
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| Distribution: | SEC registered
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| Price talk: | 6% area
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