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BlackRock Capital Allocation Term Trust (BCAT) expects to issue about 3.3 million new shares at $13.30, or 98.5% of NAV, raising roughly $43 million in its 1-for-5 rights offering. Only about 15.5% of the 21.3 million shares offered were taken up, as the subscription price was just 0.6% below the market price at expiry. NAV dilution was minimal at approximately -0.05%, and BlackRock covered all offering expenses.
BCAT Expects to Issue About 3.3 Million Shares in Rights Offering
BlackRock Capital Allocation Term Trust (BCAT) expects to issue approximately 3.3 million new shares at $13.30 per share, or 98.5% of net asset value, according to the results of its 1-for-5 rights offering.
The offering is expected to raise about $43 million.
Take-Up Was Low
Only about 15.5% of the 21.3 million shares on offer were taken up. The low participation came as the subscription price was just 0.6% below the market price at expiry, leaving little incentive for holders to subscribe.
Dilution Minimal
NAV dilution from the offering was tiny at roughly -0.05%.
BlackRock paid all the offering expenses, according to the report.