NEW YORK, June 26, 2012 /PRNewswire/ -- The Zweig Fund, Inc. (NYSE: ZF) and The Zweig Total Return Fund, Inc. (NYSE: ZTR) today announced that a 1-for-4 reverse stock split of the issued and outstanding shares of each fund will be effective as of the start of trading on June 27, 2012. The reverse stock split was among a set of actions, approved by each fund's board earlier this year, that are intended to enhance shareholder value. As a result of the reverse stock split, one new share will be issued for every four currently outstanding shares.
The reverse stock split will result in a higher per share market price for each fund's common shares, and may benefit shareholders and the funds by reducing certain per-share transaction fees and other administrative costs, such as stock exchange listing fees.
The funds will retain their trading symbols but have been assigned the following new CUSIP numbers, effective June 27, 2012:
Shareholders will be paid cash for any fractional shares that may result from the reverse split, except for shareholders participating in the funds' Automatic Dividend Reinvestment and Cash Purchase Plan who will receive fractional shares. Each shareholder will hold the same percentage of the fund's outstanding common stock immediately following the reverse stock split as held immediately prior to the split, subject to adjustments for the intended sale of fractional shares resulting from the transaction.
The funds will not issue new post-split share certificates. Current holders of certificates representing pre-split shares of the funds will receive non-certificated post-split shares, meaning their holdings will be reflected only in the funds' record books. Holders of certificates will not be able to trade their shares until they surrender their pre-split share certificates. However, they will continue to receive dividends or other distributions.
The reverse split will not result in a taxable transaction for holders of the funds, however, the exchange of fractional shares for cash may cause some shareholders to realize gains or losses, which could create a taxable event for those shareholders.
About the Funds
The Zweig Fund, Inc. (NYSE: ZF) and The Zweig Total Return Fund, Inc. (NYSE: ZTR) are closed-end funds advised by Zweig Advisers LLC. For more information on the funds, please contact Shareholder Services at 800.272.2700, by email at firstname.lastname@example.org, or visit us on the web at virtus.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful under the securities laws of any such state.
SOURCE The Zweig Fund, Inc.