SOURCE: The Zweig Total Return Fund

The Zweig Total Return Fund

November 22, 2010 17:49 ET

The Zweig Total Return Fund, Inc. Announces the Registration Statement for Its Rights Offering Is Declared Effective

NEW YORK, NY--(Marketwire - November 22, 2010) - The Zweig Total Return Fund, Inc. (the "Fund") (NYSE: ZTR) announced today that its registration statement for its rights offering has been declared effective by the U.S. Securities and Exchange Commission. 

The Fund will issue to shareholders non-transferable rights entitling them to acquire one share of common stock for each five shares held, up to an aggregate of 23,600,000 shares of common stock of the Fund. The Fund may increase the number of shares of common stock subject to subscription by up to 25% of the shares, or up to an additional 5,900,000 shares of common stock, for an aggregate total of 29,500,000 shares. Shareholders of record will receive one right for each outstanding share owned on the record date, November 29, 2010. If a record date shareholder's total ownership is fewer than five shares, such shareholder may subscribe for one share.

The subscription period is from November 30, 2010 to 5:00 p.m., New York City time, on January 7, 2011, unless extended until 5:00 p.m., New York City time, to a date not later than January 14, 2011. The subscription price per share will be equal to 95% of the lower of (i) the net asset value per share of the Fund's common stock at the close of business on January 7, 2011 (the expiration date, unless extended) of the subscription period or (ii) the average of the last reported sales price of a share of the Fund's common stock on the New York Stock Exchange on such date and the four preceding business days.

The rights are non-transferable and will not be admitted for trading on the New York Stock Exchange or any other exchange. The rights offering described above will be made only by means of a prospectus which, along with a subscription certificate, is expected to be mailed to shareholders on or about December 2, 2010.

The Zweig Total Return Fund is a closed-end fund with an investment objective to seek the highest total return, consisting of capital appreciation and current income, consistent with the preservation of capital. The Fund is advised by Zweig Advisers LLC, an affiliated investment manager of Virtus Investment Partners, Inc. (NASDAQ: VRTS).

For more information on the Fund, contact Shareholder Services at 800.272.2700 or visit us on the web at www.virtus.com.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state, or an exemption therefrom. A prospectus containing further information regarding the Fund may be obtained by contacting the information agent for the Fund's rights offering, Georgeson, Inc. Banks and brokers should call (212) 440-9800 and others should call (800) 891-3214.

Contact Information

  • For Further Information:
    Patricia Baronowski
    The Altman Group
    (212) 400-2604

    Zweig Funds Shareholder Services
    (800) 272-2700