QUANTUMONLINE.COM SECURITY DESCRIPTION: Virtus Convertible & Income Fund II formerly AllianzGI Convertible & Income Fund II, 5.50% Series A Cumulative Preferred Shares, liquidation preference $25 share, redeemable at the issuer's option on or after 9/11/2023 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. Cumulative distributions of 5.50% per annum ($1.375 per annum or $0.34375 per quarter) will be paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date that will on the fifth preceding business day prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date).
Dividends paid by preferreds issued by closed-end funds can be 0% to 100% eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and can also be 0% to 100% eligible for the dividends received deduction for corporate holders (see page 88 of the prospectus for further information).
The Fund may also be required under certain circumstances to redeem the Preferred Shares before or after 9/11/2023, in order to meet certain regulatory or rating agency asset coverage requirements (see prospectus for further information). .Prior to 9/11/2023. the Fund reserves the right to redeem the Preferred Shares at any time if it is necessary, in the judgment of the Board, to maintain its status as a regulated investment company (a RIC). The Preferred Shares will be subject to mandatory redemption if the Fund fails to satisfy certain asset coverage tests (see prospectus for further information).
This security was not rated by Moodys or S&P at the time of its IPO. In regard to the payment of dividends and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
