HIX - HIX: Yet Another Rights Offering
2024-01-24 01:20:40 ET
Summary
- Western Asset High Income Fund II has utilized rights offerings in the past to raise new capital.
- The 2022 rights offering raised approximately $31 million, which was deployed into purchasing new assets.
- HIX has announced yet another rights offering that can offer existing shareholders a discounted price to the current market value for the CEF's shares.
- Existing shareholders should take advantage of the 2024 rights offering, but expect weakness in the share price until the offering is complete.
Thesis
Western Asset High Income Fund II ( HIX ) is a fixed-income closed-end fund. The vehicle focuses on corporate bonds, both high-yield and investment grade. The fund has seen its assets under management dwindle in the past decade: