- Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) announces a Rights Offering, allowing shareholders to purchase shares at a discount.
- Management fees temporarily reduced from 1.35% to 1.00% for six months starting June 2025.
- Rights will be transferable and traded on NYSE under the symbol 'FINS RT' during the subscription period.
Angel Oak Financial Strategies Income Term Trust (FINS, Financial) has introduced a Rights Offering alongside adjustments to its monthly distribution strategy. This move, approved by the Fund's Board, enables common shareholders as of April 21, 2025, to acquire additional shares at a market discount. The subscription period is from April 21 to May 14, 2025, with a subscription price set at 94% of the average last reported sales price over five trading days, ensuring it does not drop below 90% of the NAV.
The Fund is reducing its management fee from 1.35% to 1.00% for a duration of six months beginning June 2025. This strategic decision aims to enhance trading volume and liquidity, spread fixed costs over a broader asset base, and potentially offer tax benefits through increased investments in banking sector equities.
Shareholders will receive one Right per Common Share held, and every three Rights entitle the holder to purchase one new Common Share. The Rights, identified by the trading symbol 'FINS RT', will be available for trading on the NYSE throughout the offer. This initiative is designed to bolster the Fund's asset base, taking advantage of existing and future investment opportunities as identified by Angel Oak Capital Advisors, LLC.
FINS has also declared a monthly distribution payable on April 30, 2025, and another on May 30, 2025, both excluding shares issued through this offering. Shareholders fully exercising their Rights can also subscribe for any remaining shares not purchased during the initial subscription, offering further investment opportunities.
