ArrowMark Financial Corp. (NASDAQ: BANX) Announces Terms of Rights Offering

Core Viewpoint - ArrowMark Financial Corp. has approved the issuance of transferable rights to its common shareholders, allowing them to subscribe for additional common shares, aimed at increasing the fund's assets for investment opportunities [1][3] Group 1: Offer Details - The record date for the rights issuance is set for January 22, 2026, with shareholders receiving one right for each common share held [3] - Shareholders can purchase one new common share for every three rights held, with a minimum of one share for those holding fewer than three shares [3] - The subscription period will begin on the record date and is expected to end on February 18, 2026, unless extended [4] Group 2: Financial Implications - The proceeds from the offer are expected to be invested in regulatory capital relief securities, which are anticipated to provide attractive income distributions [1][3] - An increase in the fund's assets may lower the expense ratio by spreading fixed operating costs across a larger asset base, potentially increasing liquidity and trading volume of the common shares [2] Group 3: Subscription Price - The subscription price will be determined on the expiration date, set at 92.5% of the average sales price of the common shares on that day and the four preceding trading days, with a minimum price of 90% of the fund's net asset value if the formula price is lower [5] Group 4: Additional Rights and Distributions - Shareholders who fully exercise their primary subscription rights will have an over-subscription privilege to purchase additional common shares not taken up in the primary subscription [6] - The fund has declared a regular monthly distribution and a special distribution, both payable on January 30, 2026, but these will not apply to shares issued under the offer [7][8] Group 5: Company Overview - ArrowMark Financial Corp. is a non-diversified, closed-end fund listed on NASDAQ, focusing on providing current income through investments in regulatory capital securities of financial institutions [12]