Company: NCZ-PA
Filing Date: 2025-04-11
Form Type: N-CSR
Source: 0001193125-25-079060
Chunk: 34

Company: Virtus Convertible & Income Fund II
Filing Date: 2025-04-11
Form: N-CSR
Chunk 34
---
,450 |

| (a) | Represents                                                               
 $30,000 received through the SLAA and $100,000 received through the MMLA |
| (b) | Full                                                                     
 amount received through the SLAA.                                        |

Note 9. Long-Term Financing Arrangements ($ reported in thousands except per share amounts) A. Mandatory Redeemable Preferred Shares On October 2, 2015, ACV completed a private placement with a single institutional investor, consisting of $30,000 in Series A Mandatory Redeemable Preferred Shares (“MRPS”) with a mandatory redemption date of October 2, 2025. On May 26, 2023, NCV and NCZ each completed a MRPS private placement with a single institutional investor. NCV issued $51,000 in Series A MRPS with a mandatory redemption date of May 26, 2028, and $15,000 in Series B MRPS with a mandatory redemption date of May 26, 2030. NCZ issued $22,000 in Series A MRPS with a mandatory redemption date of May 26, 2028. The estimated fair value of Series A and B (as applicable) MRPS was calculated, for disclosure purposes, by discounting future cash flows by a rate equal to the current U.S. Treasury yield with a similar maturity date, plus the spread between the A-rated U.S. Corporate rate and the current U.S. Treasury yield plus a market spread for the issuance of preferred shares. The MRPS are categorized as Level 2 within the fair value hierarchy. The following table summarizes the key terms of the MRPS and their estimated fair value at January 31, 2025:

| Fund         |     | Mandatory  
 Redemption 
 Date       |     | Annual   
 Dividend 
 Rate     |     |    Shares |     |         Per 
       Share 
 Liquidation 
  Preference |     |   Aggregate 
 Liquidation 
  Preference |     |  Estimated 
 Fair Value |
| ACV Series A |     | October    
 2, 2025    |     | 4.34%    |     | 1,200,000 |     |      $25.00 |     |     $30,000 |     |    $29,798 |
| NCV Series A |     | May        
 26, 2028   |     | 5.95%    |     | 2,