- BlackRock Health Sciences Term Trust (BMEZ, Financial) concluded a tender offer, repurchasing up to 40% of its outstanding shares.
- 38,753,713 shares were tendered, leaving the offer undersubscribed at 95.7% of the maximum offering.
- Shares will be bought at 99.5% of the Fund's NAV as of April 21, 2025.
BlackRock Health Sciences Term Trust (BMEZ) has announced the expiration and preliminary results of its tender offer, which ran from March 21, 2025, to April 17, 2025. The Trust offered to buy back up to 40,502,046 shares, representing 40% of its outstanding common shares at 99.5% of the Fund's net asset value (NAV) as of April 21, 2025.
According to preliminary results, shareholders tendered a total of 38,753,713 shares. Given the undersubscription, it is anticipated that all properly tendered shares will be purchased. The final results of the tender offer are expected to be confirmed around April 21, 2025.
This tender offer signifies a significant 38.2% reduction in BMEZ's outstanding shares. For existing shareholders, the decreased supply of shares in the market could potentially enhance share value, while ensuring that the underlying asset exposure per share remains unchanged.
The undersubscription of the tender offer implies a moderate level of confidence among shareholders in the Fund's current strategy and its holdings within the health sciences sector. As a term trust, BMEZ has a defined termination date, and this tender offer provides an opportunity for shareholders to exit earlier if they choose not to wait until the fund's eventual liquidation.
The purchase price for shares will be determined based on the NAV calculation on April 21, 2025, after which the final results will be officially announced. Shareholders who participated in the tender offer will benefit from a liquidity opportunity at a minimal discount to NAV.
