Third Avenue Recommends Rejection of ‘Mini-Tender’ Offer from MacKenzie Capital Management, LP

April 15, 2016

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Third Avenue Management LLC (“Third Avenue”) announced today that it is aware of an unsolicited “mini-tender” offer dated April 6, 2016, made by MacKenzie Capital Management, LP (“MCM”) to purchase up to 1,500,000 Shares of Third Avenue Focused Credit Fund (“FCF”), a series of the Third Avenue Trust (MUTF: TFCIX, TFCVX). Third Avenue is not in any way associated with MCM, the offer, or the offer documentation.

Third Avenue recommends against shareholders tendering shares in response to this unsolicited offer, for the reasons described below:  MCM’s offer price of $2.00 per share is 61.76% below FCF’s April 6, 2016 net asset value per share of $5.23. Third Avenue believes this price is not in the best interest of shareholders as it is materially below Third Avenue’s assessment of possible returns and timing of those returns in FCF’s liquidation.
“Mini-tender” offers seek only a small portion of a company’s outstanding shares, thereby avoiding many disclosure and procedural requirements that apply to larger tender offers under the rules of the U.S. Securities and Exchange Commission (“SEC”).
The SEC has cautioned investors about these kinds of offers in an investor alert. The SEC noted that these offers “have been increasingly used to catch investors off guard.” To read more about the risks of “mini-tender” offers, please review the alert on the SEC’s website at http://www.sec.gov/investor/pubs/minitend.htm.  Shareholders should consult their financial advisors and should exercise caution with respect to MCM’s offer.

Third Avenue requests that a copy of this news release be included with all distributions of materials relating to MCM’s mini-tender offer for FCF shares.