Virtus Dividend, Interest & Premium Strategy Fund Completes 25% Tender Offer

Virtus Dividend, Interest & Premium Strategy Fund has finalized its tender offer, accepting 23,241,811 shares, which represents 25% of its outstanding stock. The purchase price was set at 99% of the fund's net asset value as of October 5, 2026, translating to $15.9192 per share. Because the offer was oversubscribed, a proration rate of approximately 80.67% was applied to the tendered shares.

This transaction represents a significant capital return to investors. By purchasing a quarter of its outstanding shares, the fund materially reduces its public float. This reduction in shares is expected to help narrow the trading discount to its net asset value and support the market price closer to the underlying asset value in the short term. The high participation rate indicates strong investor interest in liquidating shares at a price near the net asset value.

Investors should now look ahead to the cash settlement, with payments expected to be distributed on or about October 13, 2026. Moving forward, the key factor to monitor is whether the fund can maintain a narrower discount to its net asset value after the settlement is complete, or if the fund managers will introduce further policy or distribution adjustments to support liquidity.