Thornburg Income Builder Opportunities Trust Announces Exercise of Over-Allotment Option and Initial Investor Call
Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD) announced the agents’ exercise of the over-allotment option and a conference call for investors.
SANTA FE, NM — September 23, 2021 — Thornburg Income Builder Opportunities Trust (the “Trust”) (NASDAQ: TBLD) today announced the Trust has issued an additional 1,825,633 common shares at a price of $20 per share for gross proceeds of $36,512,660, pursuant to the agents’ exercise of the over-allotment option. In total, the Trust has issued 32,081,883 common shares yielding gross proceeds of $641.6 million.
In addition, on Thursday, September 23, Ben Kirby, CFA, co-head of investments and portfolio manager, will discuss by conference call investing the Trust’s proceeds over the last month.
On August 25, the Trust announced its initial monthly distribution of $0.10417 per share on the Trust’s common shares, paid on September 20, 2021 to common shareholders of record as of September 13, 2021. Based on the Trust’s initial public offering price of $20.00 per share, the distribution represents an annualized distribution rate of approximately 6.25%.
Distribution rates are not performance and are calculated by summing the Trust’s monthly distribution per share over four quarters and dividing by the net asset value or market price per share, as applicable, as of the distribution announcement date. Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The Trust’s distribution payable on September 20, 2021 includes a return of capital and short-term capital gains in the amount of $0.06538. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2021 calendar year. The Trust’s inception date is July 27, 2021 and it has not yet made any reports on Form 1099.
Shareholders should not assume that the source of a distribution from the Trust is net income or profit. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Trust’s investment performance and should not be confused with “yield” or “income.” Future distributions may consist of a return of capital. For further information regarding the Trust’s distributions, please visit www.thornburg.com/tbld-distributions.
The Trust seeks to provide high current income and additional total return by investing in a broad range of income-producing securities. Using an active global allocation and a rigorous bottom-up fundamental investment process, the Trust invests in both equity and opportunistic fixed income located in the United States and around the globe, including emerging markets.
The lead managers of the underwriting syndicate were UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets, Stifel and Oppenheimer & Co.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
About Thornburg
Founded in 1982, Thornburg Investment Management is a privately owned global investment firm that offers a range of multi-strategy solutions for institutions and financial advisors. A recognized leader in fixed income, equity and alternatives investing, the firm oversees $49 billion1 as of August 31, 2021 across mutual funds, closed-end funds, institutional accounts, separate accounts for high-net-worth investors and UCITS funds for non-U.S. investors. Thornburg is headquartered in Santa Fe, New Mexico, with additional offices in London, Hong Kong and Shanghai.
At Thornburg, we believe unconstrained investing leads to better outcomes for our clients. Our culture is collaborative, and our investment solutions are highly active, high conviction and benchmark agnostic. When it comes to finding value for our clients, it’s more than what we do, it’s how we do it: how we think, how we invest and how we’re structured.
For more information, visit www.thornburg.com or call 877 215 1330.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. A registration statement relating to these securities has been filed with and declared effective by the U.S. Securities and Exchange Commission.
Before investing, carefully consider the Trust’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor, visit www.thornburg.com/tbld, or call 877 215 1330. Read them carefully before investing.
Certain statements in this press release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Trust, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the Trust nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Risk is inherent in all investing. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.
NOT FDIC INSUREDÂ Â NO BANK GUARANTEEÂ Â MAY LOSE VALUE
Thornburg Securities Corporation, Distributor
Media Inquiries
Michael Corrao
Director of Global Communications
Thornburg Investment Management
Tel: +1 505 467 5345
Email: mcorrao@thornburg.com
1 Includes $46.9 billion in assets under management and $1.9 billion in assets under advisement as of August 31, 2021.
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