Virtus Dividend, Interest & Premium Strategy Fund (NYSE: NFJ) will commence a cash self-tender offer to purchase up to 25% of its outstanding common shares following a standstill agreement with Saba Capital Management, L.P.
The agreement, announced on April 17, 2026, was disclosed by Saba Capital and Virtus Investment Advisers, LLC. All shareholders of the fund will have the opportunity to tender some or all of their shares in the offer. The specific pricing and timing of the tender offer were not yet disclosed.
This action provides a significant liquidity event for shareholders and is a common outcome when activist investors like Saba engage with closed-end funds trading at a discount. By repurchasing a substantial portion of its shares, the fund can potentially narrow the gap between its stock price and its net asset value (NAV).
The tender offer is likely to cause a short-term increase in NFJ's share price as investors anticipate the buyback, which could occur at a premium to the current market price. While the repurchase will reduce the fund's total assets under management, it can also be accretive to the net asset value per share for the remaining shareholders. Investors will be watching for the formal launch of the tender offer to learn the specific terms and deadline.
This article is for informational purposes only and does not constitute investment advice.
