RiverNorth Capital and Income Fund, Inc. Announces Transferable Rights Offering
MWN-AI** Summary
RiverNorth Capital and Income Fund, Inc. (NYSE: RSF) has announced a rights offering that allows current common stockholders to purchase additional shares. The offering is part of the Fund's initiative to enhance financial strength and offer opportunities for its shareholders.
Eligible stockholders, as of the Record Date of June 3, 2025, will receive transferable subscription rights, with one Right issued for each share owned. For every three Rights held, stockholders can buy one new share. However, shares purchased in this offering will not qualify for distributions in June 2025 but will be eligible for July 2025 distributions. The Rights will be tradable on the NYSE under the ticker RSF.RT.
The subscription price for newly issued shares will be determined by a formula based on either 90% of the reported net asset value or 95% of the market price, whichever is greater on the Expiration Date, set for July 7, 2025, unless extended. Shareholders can also buy any shares that are not claimed by others if they fully exercise their Rights. This rights offering is being conducted under the Fund’s effective shelf registration with the SEC, with related documentation to be provided shortly after the Record Date.
The RiverNorth Capital and Income Fund aims to provide a high level of current income, reporting approximately $53.4 million in net assets and 3.3 million shares outstanding as of April 30, 2025. As a closed-end fund, shares are traded in the secondary market, and investors should be aware of inherent risks, including the potential loss of investment.
Investors are encouraged to review the Fund's prospectus and periodic reports for comprehensive information on risks and objectives before investing.
MWN-AI** Analysis
RiverNorth Capital and Income Fund, Inc. (NYSE: RSF) has recently announced a transferable rights offering aimed at its common stockholders, an opportunity that presents both potential rewards and risks for investors. This offering allows Record Date Stockholders to purchase additional shares, which can be an attractive proposition given the Fund's investment objective of producing a high level of current income.
The mechanics of the offering permit stockholders to acquire shares at a price determined by a calculation reflecting 90% of net asset value or 95% of the market price, making it a potentially lucrative buy for long-term holders. However, investors should consider the implications of exercising their rights, particularly since those who do not exercise their rights face potential dilution of their share value.
As of April 30, 2025, the Fund holds around $53.4 million in net assets with 3.3 million shares outstanding, which indicates a moderate fund size. Given the Fund's focus on alternative credit, investors must be aware of the inherent risks associated with such instruments, including fluctuations in interest rates and the possibility of borrower defaults. Moreover, these investments often come without third-party guarantees, heightening the risk profile.
Investors should also consider the market conditions leading up to the rights offering, as these can significantly affect share prices and the attractiveness of the offering. It is advisable to closely monitor news and economic indicators, as these factors can impact investor sentiment and valuations.
In conclusion, while the rights offering provides an opportunity for existing shareholders to enhance their investment at potentially favorable prices, the inherent risks tied to the Fund's alternative credit strategy warrant cautious consideration. Prospective investors should review the accompanying prospectus and weigh both the long-term income potential against the risks before making investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
RiverNorth Capital and Income Fund, Inc. (NYSE: RSF) (the “Fund”) announces that its Board of Directors (the “Board”) has authorized and set the terms of an offering to the Fund’s common stockholders of rights to purchase additional shares of common stock of the Fund.
In this offering, the Fund will issue transferable subscription rights (“Rights”) to its common stockholders of record as of June 3, 2025 (the “Record Date” and such stockholders, “Record Date Stockholders”) allowing the holder to subscribe for new shares of common stock of the Fund (the “Primary Subscription”). Record Date Stockholders will receive one Right for each share of common stock held on the Record Date. For every three Rights held, a holder of Rights may buy one new share of common stock of the Fund. Record Date Stockholders who exercise their Rights will not be entitled to distributions payable during June 2025 on shares issued in connection with the Rights Offering, but they will be entitled to distributions payable during July 2025 on these shares. The Rights are expected to be listed and tradable on the New York Stock Exchange (“NYSE”) under the ticker: RSF.RT.
Record Date Stockholders who fully exercise all Rights initially issued to them in the Primary Subscription will be entitled to buy those shares of common stock that are not purchased by other Record Date Stockholders.
The subscription price per share of common stock will be determined based upon a formula equal to 90% of the reported net asset value or 95% of the market price per share of common stock, whichever is higher on the Expiration Date (as defined below). Market price per share of common stock will be determined based on the average of the last reported sales price of a share of common stock on the NYSE for the five trading days preceding (and not including) the Expiration Date. The subscription period will expire on July 7, 2025, unless extended by the Board (the “Expiration Date”).
The rights offering will be made pursuant to the Fund’s currently effective shelf registration statement on file with the Securities and Exchange Commission (“SEC”) and only by means of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus will be filed with the SEC but has not been filed as of the date of this release. The Company expects to mail subscription certificates evidencing the subscription rights and a copy of the prospectus supplement and accompanying prospectus for the rights offering shortly following the Record Date. These securities described in this release may not be sold nor may offers to purchase be accepted prior to the time the prospectus supplement and accompanying prospectus are filed with the SEC.
This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy.
RiverNorth Capital and Income Fund, Inc.
The investment objective of the Fund is to seek a high level of current income. Fund had approximately $53.4 million of net assets and 3.3 million shares of common stock outstanding as of April 30, 2025.
The Fund is a closed-end fund and does not continuously issue stock for sale as open-end mutual funds do. The Fund now trades in the secondary market. Investors wishing to buy or sell stock need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market value.
Risk is inherent in all investing. Investing in any investment company security involves risk, including the risk that you may receive little or no return on your investment or even that you may lose part or all of your investment. Therefore, before investing in the shares of common stock, you should consider the risks as well as the other information in the prospectus, annual report and semi-annual report.
Past performance is no guarantee of future results.
See the Prospectus for a more detailed description of Fund risks.
The profitability of specialty finance and other financial companies is largely dependent upon the availability and cost of capital funds and may fluctuate significantly in response to changes in interest rates, as well as changes in general economic conditions. If the borrower of Alternative Credit (as defined below) in which the Fund invests is unable to make its payments on a loan, the Fund may be greatly limited in its ability to recover any outstanding principal and interest under such loan, as (among other reasons) the Fund may not have direct recourse against the borrower or may otherwise be limited in its ability to directly enforce its rights under the loan, whether through the borrower or the platform through which such loan was originated, the loan may be unsecured or under collateralized, and/or it may be impracticable to commence a legal proceeding against the defaulting borrower. Substantially all of the Alternative Credit in which the Fund invests will not be guaranteed or insured by a third party. In addition, the Alternative Credit Instruments in which the Fund may invest will not be backed by any governmental authority. Prospective borrowers supply a variety of information regarding the purpose of the loan, income, occupation and employment status (as applicable) to the lending platforms. As a general matter, platforms do not verify the majority of this information, which may be incomplete, inaccurate, false or misleading. Prospective borrowers may misrepresent any of the information they provide to the platforms, including their intentions for the use of the loan proceeds. Alternative Credit Instruments are generally not rated by the nationally recognized statistical rating organizations (“NRSROs”). Such unrated instruments, however, are considered to be comparable in quality to securities falling into any of the ratings categories used by such NRSROs to classify "junk" bonds (i.e., below investment grade securities). Accordingly, the Fund’s unrated Alternative Credit Instrument investments constitute highly risky and speculative investments similar to investments in “junk” bonds, notwithstanding that the Fund is not permitted to invest in loans that are of subprime quality at the time of investment. Although the Fund is not permitted to invest in loans that are of subprime quality at the time of investment, an investment in the Fund’s Shares should be considered speculative and involving a high degree of risk, including the risk of loss of investment. There can be no assurance that payments due on underlying loans, including Alternative Credit, will be made.
Diversification does not ensure a profit or a guarantee against loss.
The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Fund’s prospectus and most recent periodic reports contain this and other important information about the investment company and may be obtained by visiting rivernorth.com/literature or by calling 844.569.4750. Read the Prospectus carefully before investing.
RiverNorth Capital Management, LLC
RiverNorth Capital Management, LLC (“RiverNorth”) is an independent investment manager and closed-end fund expert specializing in opportunistic strategies and structures built to exploit market inefficiencies. Founded in 2000, RiverNorth manages $5.0 billion 1 of assets in registered funds, private funds and separately managed accounts.
1 As of March 31, 2025. Firm AUM reflects Managed Assets which includes the effects of leverage and investments in affiliated funds.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Marketing services provided by ALPS Distributors Inc. ALPS and RiverNorth are not affiliated.
RiverNorth® is a registered trademark of RiverNorth Capital Management, LLC.
©2000-2025 RiverNorth Capital Management, LLC. All rights reserved.
RVN001803
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Investor Contact
RiverNorth CEF Investor Relations
800-646-0148, Option 1
CEF@rivernorth.com
FAQ**
How does RiverNorth Marketplace Lending Corporation RSF plan to ensure that the issuance of transferable subscription rights positively impacts its net asset value going forward?
What specific measures are in place to manage the risks associated with investing in Alternative Credit Instruments in the RiverNorth Marketplace Lending Corporation RSF?
Can you detail how the subscription price formula for the rights offering at RiverNorth Marketplace Lending Corporation RSF will affect shareholder investment decisions and overall market perception?
What strategies does RiverNorth Marketplace Lending Corporation RSF employ to maintain liquidity during the rights offering period, especially given the closed-end fund structure?
**MWN-AI FAQ is based on asking OpenAI questions about RiverNorth Marketplace Lending Corporation (NYSE: RSF).
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