ArrowMark Financial Corp. (NASDAQ: BANX) Announces Terms of Rights Offering

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• Investors continue to find regulatory capital relief securities attractive due to their income generation, comparatively stable asset valuations, and limited correlation to other asset classes

  80% confidence

• The Offer would enable the Fund to take advantage of existing and future investment opportunities that are or may become available, consistent with the Fund's investment objective to provide Common Shareholders with current income, and, to a lesser extent, capital appreciation

  80% confidence

• The Offer creates potential for increased liquidity and trading volume of the Fund's Common Shares

  80% confidence

• The proceeds of the Offer will be primarily invested in compelling opportunities in regulatory capital relief securities issued by leading global financial institutions, which provide attractive, steady income distributions from floating-rate coupons

  80% confidence

• An increase in the Fund's assets may also lower the Fund's expense ratio, as fixed operating costs would be spread across a larger asset base

  80% confidence

• We estimate regulatory capital relief security issuance reached a record level in 2025, reflecting increased activity from long-term issuers and inaugural issuances from first-time market participants

  80% confidence

• Looking ahead to 2026, the Fund will seek to take advantage of ongoing secular trends and expects to continue investing in regulatory capital relief securities primarily issued by large money center banks, global systemically important banks, and their affiliates

  80% confidence

• It is in the best interests of the Fund and the Common Shareholders to conduct the Offer and thereby to increase the assets of the Fund available for investment

  80% confidence