Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 37

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 37
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 rate, notional/carrying amount and estimated fair value of the Notes outstanding at January 31, 2025:

| Maturity 
 Date     |     | Interest 
 Rate     |     | Notional/ 
  Carrying 
    Amount |     |  Estimated 
 Fair Value |
| November 
 22, 2029 |     | 3.94%    |     |   $50,000 |     |    $47,328 |

With respect to the Notes, the Fund is subject to monthly asset coverage tests that mirror those applicable to closed-end funds set forth in Section 18 of the 1940 Act, as well as periodic asset coverage tests that are tied to rating agency criteria, in each case subject to various terms and conditions. A breach of any of these tests, after the passage of a cure period, would constitute an event of default under the Notes. The agreements governing the MRPS and Notes impose certain additional customary covenants and restrictions on the Fund, including, among others, restrictions on distributions and a requirement that the Fund adhere to its stated investment policies. Note 10. Margin Loan Financing ($ reported in thousands) ACV has entered into a margin loan financing agreement with a commercial bank (the “Bank”) that allows the Fund to borrow cash from the Bank. Cash borrowings are secured by assets of the ACV that are held with the Fund’s custodian in a separate account. Interest is charged at the Secured Overnight Bank Funding Rate plus an additional percentage rate on the amount borrowed. For the year ended January 31, 2025, the weighted average daily balance outstanding was $25,000 at the weighted average interest rate of 6.13%. With respect to the margin loan financing, loan interest expense of $1,557 is included in the ACV’s Statement of Operations. At January 31, 2025, the amount of outstanding borrowings was as follows:

| Outstanding 
 Borrowings  |     | Interest 
 Rate     |
| $25,000     |     | 5.40%    |

Note 11. Cumulative Preferred Shares ($ reported in thousands except per share amounts ) In September 2018, NCV and NCZ each issued fixed-rate Series A Cumulative Preferred Shares. The shares are perpetual. To the extent permitted by the 1940 Act and Massachusetts law, the Funds may at any time, upon notice of redemption, redeem the Series A Cumulative Preferred Shares in whole or in part at the liquidation preference per