8-K: RiverNorth Capital and Income Fund to Redeem Series A Preferred Stock, Delist from NYSE

RiverNorth Capital and Income Fund will redeem all outstanding shares of its 5.875% Series A Term Preferred Stock and delist it from the New York Stock Exchange.

Summary

• RiverNorth Capital and Income Fund, Inc. has announced the redemption of all 1,656,000 outstanding shares of its 5.875% Series A Term Preferred Stock.
• The anticipated redemption date is October 4, 2024, but the redemption may occur later, no later than October 31, 2024, due to market conditions or other factors.
• The redemption price is estimated to be $25.20 per share, which includes the $25.00 liquidation preference plus $0.20 for accrued and unpaid dividends.
• Following the redemption, the Series A Preferred Stock will no longer be outstanding, dividends will cease, and all rights of the holders will terminate.
• The Series A Preferred Stock will be suspended from trading on the New York Stock Exchange before market open on October 4, 2024.
• The fund has filed a notice of its intention to redeem the Series A Preferred Stock with the SEC.

Sentiment

Score: 7

Explanation: The document is a routine announcement of a planned redemption of preferred stock, which is a neutral event. The terms are favorable to the preferred shareholders, but the delisting is a negative for them. Overall, the sentiment is slightly positive.

Positives

• Shareholders of the Series A Preferred Stock will receive $25.20 per share, which includes the liquidation preference and accrued dividends.
• The redemption process is clearly outlined, with a specific anticipated date and a final mandatory date.
• The fund has taken the necessary steps to notify the SEC and the NYSE of the redemption and delisting.

Negatives

• Holders of the Series A Preferred Stock will no longer receive dividends after the redemption.
• The Series A Preferred Stock will be delisted from the NYSE, removing a trading option for investors.

Risks

• The redemption date may be delayed due to changes in market conditions or other factors, although it cannot be later than October 31, 2024.
• The fund's investment return and principal value will fluctuate, and there is no assurance that the fund will achieve its investment objective.

Future Outlook

The fund will redeem all outstanding shares of its Series A Preferred Stock, which will then be delisted from the NYSE. The fund will continue to operate as a closed-end fund seeking a high level of current income.

Management Comments

• The Board of Directors of the RiverNorth Capital and Income Fund, Inc. has authorized the redemption of all 1,656,000 outstanding shares of its 5.875% Series A Term Preferred Stock.
• The Fund has filed a notice of its intention to redeem the Series A Preferred Stock with the Securities and Exchange Commission.

Industry Context

This action is a specific event for RiverNorth Capital and Income Fund and does not necessarily reflect a broader trend in the closed-end fund industry. However, it is not uncommon for funds to redeem preferred stock as part of their capital management strategy.

Comparison to Industry Standards

• Redeeming preferred stock is a common practice for closed-end funds, often done to manage capital structure or when the cost of the preferred stock becomes unfavorable.
• The redemption price of $25.20 per share, which includes the liquidation preference and accrued dividends, is standard practice for preferred stock redemptions.
• Delisting from an exchange after redemption is also a typical procedure.

Stakeholder Impact

• Holders of the Series A Preferred Stock will receive $25.20 per share.
• Holders of the Series A Preferred Stock will no longer receive dividends after the redemption.
• The Series A Preferred Stock will no longer be traded on the NYSE.

Next Steps

• The Fund will complete the redemption of the Series A Preferred Stock.
• The Series A Preferred Stock will be delisted from the NYSE.
• Payment will be made to DTC for the Series A Preferred Stock by DST Systems, Inc.

Key Dates

Keywords

preferred stock, redemption, delisting, NYSE, RiverNorth Capital and Income Fund, RMPL, closed-end fund