Saba Capital Enters into Standstill Agreement with Clough Global Opportunities
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 Opportunities Fund (the Fund) is a closed-end management investment company. The Fundâs investment objective is to provide a high level of total return and current income. It seeks to achieve its objective by applying a fundamental research-driven investment process. It will invest in equity and equity-related securities, as well as fixed-income securities, including both corporate and sovereign debt. Its investment portfolio includes common stocks, preferred stocks, corporate bonds, convertible corporate bonds, asset-backed securities, convertible corporate bonds, and government and agency obligations. It invests in various sectors, such as consumer discretionary, energy, financials, healthcare, industrials, information technology, real estate, and communications services. The Fund holds investments in various countries, including the United States, China, France, Germany, Switzerland, Canada, and Hong Kong. Investment advisor of the Fund is Clough Capital Partners L.P.