Saba Capital Enters into Standstill Agreement with Clough Global Dividend and Income
July 11, 2017 at 01:00 pm
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On July 11, 2017, Saba Capital Management, L.P. announced that it has entered into a standstill agreement with the Clough Global Opportunities Fund whereby the parties agreed, among other things, and subject to certain conditions, that the Board of Trustees of the Company will cause the Company to commence a tender offer to purchase for cash 37.5% of its outstanding shares at a price per share equal to 98.5% of the Company’s net asset value, subject to certain terms and conditions, with such tender offer to be completed not prior to November 5, 2017 and not later than November 27, 2017. In addition, pursuant to the terms of the standstill agreement, the Company will also commence a monthly managed distribution program beginning in August, 2017, and continuing through July, 2019 whereby the Company will pay monthly distributions (subject to certain limitations) in an annualized amount of not less than 10% of the Company’s average net asset value. In addition, Saba Capital agreed to withdraw its proposed nominees to serve as trustees of the Company as well as its proposal seeking a shareholder vote regarding the classified board structure of the Issuer and agreed to tender 100% of its then-owned shares of the Company in the tender 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.