SCHEDULE 13G/A: Karpus Management Reports Diluted Stake in Sound Point Meridian

Karpus Management, Inc. reported a decrease in its beneficial ownership percentage to 9.46% in Sound Point Meridian Capital, Inc.'s Preferred stock, despite a slight increase in absolute shares held.

Summary

• Karpus Management, Inc. (d/b/a Karpus Investment Management) filed a Schedule 13G Amendment No. 2 regarding its beneficial ownership in Sound Point Meridian Capital, Inc.'s Preferred stock.
• As of July 31, 2025, Karpus Management beneficially owned 435,044 shares of Preferred stock, representing 9.46% of the class.
• Karpus Management holds sole voting power and sole dispositive power over all 435,044 shares.
• The shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control of the issuer.
• Karpus Management is a registered investment adviser under Section 203 of the Investment Advisers Act of 1940.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the significant dilution of Karpus Management's percentage ownership, despite a minor increase in absolute shares. This suggests a substantial increase in the total outstanding shares of the Preferred class, which could be viewed unfavorably by existing shareholders.

Positives

• Karpus Management, Inc. slightly increased its absolute shareholding in Sound Point Meridian Capital, Inc.'s Preferred stock from 432,671 shares to 435,044 shares.

Negatives

• Beneficial ownership percentage in Sound Point Meridian Capital, Inc.'s Preferred stock decreased significantly from 18.81% as of June 30, 2025, to 9.46% as of July 31, 2025. This indicates a substantial dilution of Karpus Management's stake, likely due to an increase in the total outstanding shares of the class.

Risks

• The significant decrease in percentage ownership suggests a substantial increase in the total outstanding shares of the Preferred class, which could dilute the value or influence of existing shareholders.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This filing represents a standard disclosure of beneficial ownership by an investment adviser, common in the financial industry for transparency regarding significant holdings and compliance with SEC regulations.

Related Party Transactions

• Karpus Management, Inc. is controlled by City of London Investment Group plc (CLIG), a London Stock Exchange-listed entity.
• Informational barriers are established between Karpus and CLIG, ensuring independent exercise of voting and investment power over the securities, thus preventing attribution of beneficial ownership between the two entities.

Stakeholder Impact

• Shareholders of Sound Point Meridian Capital, Inc. may experience dilution of their ownership percentage if the increase in outstanding Preferred shares was not accompanied by a proportional increase in company value or assets.

Key Dates

Recommendation

While Karpus Management slightly increased its absolute share count, the substantial decrease in its percentage ownership from 18.81% to 9.46% indicates significant dilution. Investors should investigate the reason for the increased share count in the Preferred class and its implications for existing shareholders before making further investment decisions.

Keywords

Sound Point Meridian Capital, Karpus Management, Preferred Stock, Schedule 13G, Beneficial Ownership, Investment Management, SEC Filing, Dilution