BlackRock Corporate High Yield Fund Announces Rights Offering for 32.6M Shares at a Discount to NAV

summarizeSummary

BlackRock Corporate High Yield Fund, Inc. is conducting a transferable subscription rights offering to issue 32.6 million new common shares, representing a 20% increase in outstanding shares, at an estimated price of $8.69 per share, a discount to its current market price and net asset value.

check_boxKey Events

• Rights Offering Announced

  The Fund is issuing transferable subscription rights to acquire 32,609,596 new common shares, with shareholders receiving one right for each common share held, entitling them to purchase one new share for every five rights held.

• Significant Dilution

  The offering represents a 20.0% increase in the number of outstanding common shares, which is expected to result in an immediate dilution of the net asset value (NAV) per common share for all existing shareholders.

• Discounted Subscription Price

  The estimated subscription price is $8.69 per share, which is below the last reported sales price of $8.90 (as of Dec 31, 2025) and a 10% discount to the NAV of $9.65 (as of Dec 31, 2025).

• Substantial Capital Raise

  The offering is expected to generate approximately $283.4 million in net proceeds, which will be invested in accordance with the Fund's investment objectives and policies.

auto_awesomeAnalysis

BlackRock Corporate High Yield Fund, Inc. is conducting a substantial transferable subscription rights offering, which will significantly increase its outstanding shares and raise a considerable amount of capital. The offering is priced at a discount to both the current market price and the net asset value (NAV), indicating a need to incentivize participation. While the dilution is substantial, the proceeds are intended for investment in line with the Fund's objectives and will also reduce the Fund's leverage, which is a positive for its risk profile. The advisor bearing the offering expenses also mitigates some of the negative impact on the Fund.