RiverNorth Opportunities Fund Issues $75M Series B Mandatory Redeemable Preferred

What Happened

• RiverNorth Opportunities Fund, Inc. (NYSE: RIV) announced on September 18, 2026 that it entered into a securities purchase agreement and issued 3,000,000 shares of Series B Mandatory Redeemable Preferred Stock (MRP Shares), generating approximately $75.0 million of gross proceeds. The Board approved the Articles Supplementary for these shares (effective September 18, 2026).
• The MRP Shares pay cumulative monthly dividends at an annual rate of 6.476% (equal to $1.619 per share per year), with the first dividend payable September 30, 2026. The Fund must redeem all outstanding MRP Shares on September 18, 2031 (Term Redemption Date), subject to certain optional earlier redemptions and asset‑coverage triggered redemptions.

Key Details

• Amount raised: 3,000,000 shares × $25 liquidation preference = ~$75,000,000 gross proceeds.
• Dividend: 6.476% annual (cumulative), paid monthly; $1.619 per share per year.
• Term/Redemption: Mandatory redemption on Sept 18, 2031; Fund may redeem earlier in permitted increments or under asset‑coverage triggers; limited optional redemptions include a potential make‑whole adjustment.
• Priority and restrictions: MRP Shares rank senior to common stock and equal to existing Series A preferred as to dividends and liquidation, but are subordinate to the Fund’s BNP Paribas credit agreement and any future senior debt. The Articles Supplementary include restrictions on incurring additional senior (“Priority”) debt and require offers to redeem MRP Shares (with a 2% redemption amount) if certain asset‑coverage or Priority Debt tests are breached.
• Transferability/listing: MRP Shares will not be listed and cannot be transferred without the Fund’s consent.

Why It Matters

• The Fund raised $75M to primarily refinance existing debt and make new portfolio investments—providing near‑term liquidity and lowering reliance on other credit sources per the filing.
• The new preferred shares create a fixed, cumulative dividend obligation (6.476% annually) that is senior to common stock dividends and may reduce distributable earnings available to common shareholders.
• The Articles Supplementary include asset‑coverage and Priority Debt covenants that can limit the Fund’s ability to take on additional senior debt and can trigger partial redemptions of the MRP Shares if coverage tests are not met—mechanisms that affect leverage and capital flexibility.
• Because the MRP Shares are unlisted and non‑transferable without consent, they are less liquid than publicly traded securities; holders will rely on the Fund’s redemption provisions for exit.