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    NCV, NCZ Announce Reverse Stock Splits and Monthly Distributions

    11/20/24 4:36:00 PM ET
    $NCV
    $NCZ
    $VRTS
    Finance Companies
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    Virtus Convertible & Income Fund (NYSE:NCV) and Virtus Convertible & Income Fund II (NYSE:NCZ) announced today that their Boards of Trustees approved a 1-for-4 reverse stock split for each Fund effective on or about the start of trading on Monday, February 10, 2025 ("Effective Date").

    The Funds' common shares will begin trading on a split-adjusted basis with new CUSIPs when the market opens on the Effective Date and one new share will be issued for every four outstanding common shares currently outstanding of NCV and NCZ. Shareholders will be paid in cash for any fractional shares that may result from the reverse stock split (the "Transaction"). Immediately following the Transaction, each shareholder of record will hold the same percentage of their Fund's outstanding common stock after the Transaction as held immediately prior to the Transaction and will receive the same monthly cash flow from distributions on net asset value, subject to adjustments for the intended cash repurchase of fractional shares resulting from the Transaction.

    The Transaction is expected to result in a higher per-share market price for each Fund's common shares. The Board believes that increasing the per-share market price may broaden the range of potential investors in each Fund's shares, thereby potentially improving the market for, and liquidity of, the Funds' common stock. In addition, the Transaction may benefit shareholders and the Funds by reducing certain per-share transaction fees and other administrative costs, such as stock exchange listing fees.

    Each Fund will retain its trading symbol but will be assigned a new CUSIP number, which will be announced prior to the Transaction and will become effective on the Effective Date.

    Prior to the Transaction, the Funds announced the following distributions on their respective common shares:

    Virtus Convertible & Income Fund:

    Ticker

    Amount of Distribution

    Ex-Date/Record Date

    Payable Date

    NCV

    $0.034

    December 12, 2024

    December 30, 2024

    NCV

    $0.034

    January 13, 2025

    January 30, 2025

    Virtus Convertible & Income Fund II:

    Ticker

    Amount of Distribution

    Ex-Date/Record Date

    Payable Date

    NCZ

    $0.030

    December 12, 2024

    December 30, 2024

    NCZ

    $0.030

    January 13, 2025

    January 30, 2025

    After the Transaction, the dividend rate will be proportionally increased as follows:

    Virtus Convertible & Income Fund:

    Ticker

    Amount of Distribution

    Ex-Date/Record Date

    Payable Date

    NCV

    $0.136

    February 13, 2025

    February 27, 2025

    NCV

    $0.136

    March 13, 2025

    March 28, 2025

    Virtus Convertible & Income Fund II:

    Ticker

    Amount of Distribution

    Ex-Date/Record Date

    Payable Date

    NCZ

    $0.120

    February 13, 2025

    February 27, 2025

    NCZ

    $0.120

    March 13, 2025

    March 28, 2025

    The distributions reported in this notice are estimates only and are not being provided for tax reporting purposes. The actual amounts and sources of the distributions for tax purposes will depend on each Fund's investment experience during the remainder of its fiscal year and may be subject to change based on tax regulations. The Fund or your broker will send you a Form 1099-DIV for the calendar year that will tell you what distributions to report for federal income tax purposes.

    About the Funds

    Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II each have an investment objective to provide total return through a combination of capital appreciation and high current income. Virtus Investment Advisers, Inc. is the investment adviser to each fund and Voya Investment Management is the subadviser.

    For more information on these funds, contact shareholder services at (866) 270-7788, by email at [email protected], or through the Closed-End Funds section on the web at virtus.com.

    Fund Risks

    An investment in a fund is subject to risk, including the risk of possible loss of principal. A fund's shares may be worth less upon their sale than what an investor paid for them. Shares of closed-end funds may trade at a premium or discount to their net asset value. For more information about each fund's investment objective and risks, please see the funds' annual report. A copy of the funds' most recent annual report may be obtained free of charge by contacting "Shareholder Services" as set forth at the end of this press release.

    About Virtus Investment Partners, Inc.

    Virtus Investment Partners (NYSE:VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment management products and services from our affiliated managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com.

    View source version on businesswire.com: https://www.businesswire.com/news/home/20241120132284/en/

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    Q&A

    New
    • What major decision was announced for the Virtus Convertible & Income Fund and Virtus Convertible & Income Fund II?

      The Funds' Boards of Trustees have approved a 1-for-4 reverse stock split, which means that for every four shares a shareholder currently owns, they will receive one new share effective February 10, 2025.

    • What is the intended purpose of the planned reverse stock split for Virtus Funds?

      The reverse stock split aims to increase the per-share market price, potentially attracting a broader range of investors and improving the liquidity of the Funds' shares while also reducing certain per-share transaction fees and administrative costs.

    • How will the reverse stock split affect shareholders' ownership and cash flow from distributions?

      Shareholders will hold the same percentage of their Fund's common stock after the reverse stock split as they did before, and they will continue to receive the same monthly cash flow distributions, subject to adjustments.

    • What are the new distribution amounts for Virtus Convertible & Income Fund (NCV) and Virtus Convertible & Income Fund II (NCZ) post-split?

      The new distribution amounts will be $0.136 for NCV and $0.120 for NCZ, reflecting increases due to the reverse stock split, with the new rates effective after the transaction.

    • Will the Funds retain their current trading symbols after the reverse stock split?

      The Funds' new CUSIP numbers will be announced prior to the transaction, allowing for easier identification and tracking of shares following the reverse stock split.

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