Terms

Series

Series A, Perpetual Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6%

Rate Type

Fixed

Annual Dividend

$1.50

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 15, 2027

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: Senior Indebtedness Including Credit Agreement With Pershing Llc (Max $65,000,000 Borrowing Capacity), Any Future Senior Indebtedness; Pari Passu With: Any Future Series Of Preferred Stock Issued By The Fund; Senior To: Common Shares

Credit Rating (Moody's)

rated by Moody's (specific rating not stated in provided text)

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

3,400,000

Prospectus Summary

RiverNorth Opportunities Fund, Inc. is a diversified closed-end management investment company offering 3,400,000 shares of its Series A, Perpetual Preferred Stock at a $25.00 liquidation preference and a fixed 6.00% annual coupon ($1.50 per share annually, or $0.375 quarterly), callable at par on or after May 15, 2027, and listed on the NYSE under 'RIVPRA'. These are direct preferred shares — not depositary shares — with no conversion rights. Critically, dividends are cumulative, meaning any unpaid dividends accrue and must be fully satisfied before the Fund may pay dividends on or redeem its common shares. The Perpetual Preferred Shares sit above the common shares but are explicitly subordinate to all senior indebtedness, including the Fund's existing $65 million credit facility with Pershing LLC. This means the lender can block or limit dividend and redemption payments on the preferred if asset coverage tests fail or a credit agreement default occurs — a meaningful structural risk for preferred holders. There is no bank subsidiary subordination concern as this is a registered closed-end fund. A regulatory/asset coverage call provision exists: the Fund must mandatorily redeem shares if it fails to maintain 200% asset coverage under the 1940 Act, and may optionally redeem at any time to preserve its RIC tax status. At the $25.00 offering price, the effective yield is 6.00% annually, paid quarterly on February 15, May 15, August 15, and November 15, with record dates set 10–20 calendar days prior to each payment date. Because this is a RIC (closed-end fund), distributions may include ordinary income, long-term capital gains, and return of capital — the Fund intends to designate a portion as capital gain dividends, which generally do not qualify for the preferential 15%/20% QDI rate. DRD eligibility is also uncertain. If the Fund fails to deposit sufficient funds with the Dividend Disbursing Agent, a default rate of 8.00% (6.00% + 2.00%) applies. Dividends on common shares are fully blocked until all cumulative preferred dividends are current.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If any cumulative dividends on the Perpetual Preferred Shares are unpaid, the Fund cannot pay dividends on or redeem its common shares. Separately, the Fund's senior lender (Pershing LLC credit facility) can block or limit dividends and redemption payments on the Perpetual Preferred Shares if asset coverage tests are not met or an event of default exists under the credit agreement.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 59 (Average)