Saba Capital Management has reached agreements with BlackRock Advisors to initiate significant cash tender offers for two of its closed-end funds – the BlackRock Innovation and Growth Term Trust (BIGZ) and the BlackRock Health Sciences Term Trust (BMEZ).
These agreements, finalised after “constructive negotiations”, according to a press statement, will allow shareholders of the funds to sell a substantial portion of their shares at near net asset value (NAV).
Under the terms of the agreements, BIGZ will buy back 50% of its outstanding common shares, while BMEZ will repurchase 40% of its common shares.
Both buybacks will be executed at 99.5% of NAV, calculated at the close of the trading session following the tender offer’s expiration.
The tender offer for BMEZ will open on 21 March, 2025, and conclude after 20 business days, while the BIGZ offer will begin on 9 June, 2025, and follow a similar 20-business-day schedule.
Shareholders whose shares are accepted will receive payment within seven business days of the tender offer’s closure.
As part of the agreement, Saba will tender all its shares in the funds and withdraw previously submitted shareholder proposals. Additionally, the hedge fund has committed to a three-year standstill agreement, refraining from shareholder activism related to these funds through the 2027 proxy season.
The full terms of the agreements will be filed with the Securities and Exchange Commission.
