Thornburg Income Builder Opportunities Trust Raises $580 million in Initial Public Offering
Thornburg has successfully completed the initial public offering of the Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD).
SANTA FE, NM — July 27, 2021 — Thornburg Investment Management (“Thornburg”), a global investment firm that oversees $49 billion in assets,1 has successfully completed the initial public offering of the Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD). The common shares of the closed-end fund will begin trading tomorrow, July 28, 2021, on the NASDAQ under the symbol TBLD.
The Trust raised $580 million, selling 29,000,000 common shares at $20 per share, excluding any exercise of the underwriters’ option to purchase additional shares. If the underwriters exercise that option in full, which may not occur, the Trust will have raised approximately $667 million. The offering is expected to close on July 30, 2021, subject to customary closing conditions.
“At Thornburg, we have a nearly four-decade history of delivering global income solutions that look across asset classes and markets to uncover investment opportunities,” said Thornburg President & CEO Jason Brady. “We are proud to bring investors our investment expertise within the innovative closed-end fund structure of the Thornburg Income Builder Opportunities Trust.”
The Trust seeks to provide high current income and additional total return by investing in a broad range of income-producing securities. Using an active global allocation and a rigorous bottom-up fundamental investment process, the Trust invests in both equity and opportunistic fixed income located in the United States and around the globe, including emerging markets.
“With the continued frequency and magnitude of equity market volatility experienced over the past decade, investors need the flexibility to invest across equity and fixed income opportunities,” said Thornburg Co-Head of Investments and Portfolio Manager Ben Kirby. “We believe our active approach, with the right blend of global debt and equity, can deliver on income and return goals.”
In addition to Mr. Kirby, co-portfolio managers Matt Burdett and Christian Hoffmann also provide day‐to‐day management of the Trust’s portfolio and enforce a disciplined, repeatable process. They are supported by all members of the Thornburg investment team.
The lead managers of the underwriting syndicate were UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets, Stifel and Oppenheimer & Co.
Founded in 1982, Thornburg Investment Management is a privately owned global investment firm that offers a range of multi-strategy solutions for institutions and financial advisors. A recognized leader in fixed income, equity and alternatives investing, the firm oversees $49 billion1 as of June 30, 2021 across mutual funds, institutional accounts, separate accounts for high-net-worth investors and UCITS funds for non-U.S. investors. Thornburg is headquartered in Santa Fe, New Mexico, with additional offices in London, Hong Kong and Shanghai.
At Thornburg, we believe unconstrained investing leads to better outcomes for our clients. Our culture is collaborative, and our investment solutions are highly active, high conviction and benchmark agnostic. When it comes to finding value for our clients, it’s more than what we do, it’s how we do it: how we think, how we invest and how we’re structured.
For more information, visit www.thornburg.com or call 877 215 1330.
About the Trust
The Trust’s investment objective is to provide current income and additional total return. The Trust seeks to achieve its objective by investing, directly or indirectly, at least 80% of its managed assets in a broad range of income-producing securities. The Trust will invest in both equity and debt securities of companies located in the United States and around the globe. The Trust may invest in non-U.S. domiciled companies, including up to 20% of its managed assets at the time of investment in equity and debt securities of emerging market companies.
The Trust intends to terminate on or before August 2, 2033 (the “Termination Date”). The Termination Date may be extended once for up to one year; once for up to an additional six months; and the Trust may conduct an eligible tender offer. Upon termination of the eligible tender offer, each common shareholder would be eligible to be paid its pro-rata portion of the Trust’s net assets. If due to tendered shares the Trust’s net assets would total less than $100 million, then the Trust will begin to terminate on or before the Termination Date. Following the tender offer, if the Trust’s net assets are greater than $100 million, the Trust may eliminate the term structure upon a vote of its Board of Trustees.
Investment in the Trust involves special risk considerations. The Trust is designed as a long-term investment and not as a trading vehicle. The Trust is not intended to be a complete investment program. The Trust’s performance and the value of its investments will vary in response to changes in interest rates, inflation and other market factors. Investors should consider the risks as well as other information in the Trust’s prospectus. Shares of closed-end funds trade in the secondary market and may frequently trade at a discount to their net asset value and initial offering price. The risk of loss due to this discount may be greater for initial investors expecting to sell their shares in a relatively short period after completion of the initial public offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. A registration statement relating to these securities has been filed with and declared effective by the U.S. Securities and Exchange Commission.
Before investing, carefully consider the Trust’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor, visit www.thornburg.com/tbld, or call 877 215 1330. Read them carefully before investing.
Certain statements in this press release constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Trust, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the Trust nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Risk is inherent in all investing. There can be no assurance that the Trust will achieve its investment objective, and you could lose some or all of your investment.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Thornburg Securities Corporation, Distributor
Director of Global Communications
Thornburg Investment Management
Tel: +1 505 467 5345
1 Includes $46.7 billion in assets under management and $1.9 billion in assets under advisement as of June 30, 2021.