Denali Fund buys $17.1 million of auction preferreds in tender offer

By Susanna Moon

Chicago, July 25 - Denali Fund Inc. said that investors tendered 1,568 of its outstanding series A auction preferred shares in the cash tender offer for up to 720 of the auction preferreds.

The pro rata allocation is about 0.459184 accepted preferred per share tendered, according to a company press release.

Denali Fund will pay $17.1 million for the accepted preferreds, which is 95% of the $25,000 liquidation preference per preferred, or $23,750 per preferred.

Denali also will pay accrued dividends through the offer expiration of 5 p.m. ET on July 22.

As previously noted, the fund's board of directors decided to tender for the preferreds at a meeting held on Jan. 28.

Morrow & Co., LLC (800 662-5200) was the information agent, and Colbent Corp. was the depositary.

Denali is a closed-end fund based in New York and managed by Boulder Investment Advisers, LLC and Stewart Investment Advisers.

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