Rivus Bond Fund (BDF) Announces Commencement of Rights Offering

ARMONK, N.Y.--(BUSINESS WIRE)--Rivus Bond Fund (NYSE:BDF) (the “Fund”) announced today it has commenced its transferable rights offering (the “Rights Offering”). The Fund will issue to shareholders of record (“Record Date Shareholders”) as of July 15, 2009 (the “Record Date”) one transferable right (“Right(s)”) for each share of beneficial interest of the Fund (“Share(s)”) held on the Record Date. For every three (3) Rights that a shareholder receives, a shareholder may subscribe for one new share of the Fund at the subscription price.

The actual subscription price will not be determined until the expiration of the Rights Offering, August 7, 2009 (the “Expiration Date/Pricing Date”), unless extended. The subscription price per share (the “Subscription Price”) will be 86% of the net asset value per share (“NAV”) on the Expiration Date/Pricing Date. Participating shareholders will be required to initially pay for the Shares subscribed for in the Rights Offer as well as any additional shares subscribed for as part of the over-subscription privilege at an estimated subscription price of $15.35 per share.

The Rights are transferable and have been admitted for trading on the New York Stock Exchange (“NYSE”) under the ticker symbol “BDF RT”. The Rights Offering will be made only by means of a prospectus to be distributed to Record Date Shareholders as soon as possible after the Record Date.

The subscription period begins today July 15, 2009, and ends at 5:00 p.m. Eastern Time on August 7, 2009 (the “Expiration Date”), unless the Rights Offering is extended. Record Date Shareholders who fully exercise their primary subscription rights will be eligible for an over-subscription privilege entitling those shareholders to subscribe, subject to certain limitations and a pro-rata allotment, for any shares not purchased pursuant to the primary subscription.

To exercise the Rights, Record Date Shareholders should contact their bank, trust company or broker-dealer, if applicable, to forward their instructions to either exercise or sell their rights on their behalf. Record Date Shareholders who do not hold their shares through a bank, trust company or broker-dealer, should forward their instructions to either exercise or sell their Rights by completing the subscription certificate, which will be mailed shortly after the Record Date, and returning it to the Subscription Agent, together with their payment, at one of the locations indicated on the subscription certificate and in the prospectus. Persons seeking further information regarding the Rights Offering, or interested in obtaining a prospectus, when available, should contact their broker or nominee, or contact the Fund’s Information Agent: Georgeson Inc. at (888) 293-6908.

Boenning & Scattergood, Inc. is acting as Dealer Manager for the Rights Offering.

Investments in the Fund involve risks. Shares of closed-end funds frequently trade at a discount to NAV. The price of the Fund’s shares is determined by a number of factors, several of which are beyond the control of the Fund. Therefore, the Fund cannot predict whether its shares will trade at, below or above NAV. Before investing in the Fund, investors should carefully consider the investment objective, risks, and charges and expenses of the Fund.

Rivus Bond Fund is a closed-end, diversified management investment company with approximately $87 million in total assets whose primary investment objective is to seek a high rate of return, primarily from interest income and trading activity, from a portfolio principally consisting of debt securities. The Fund is managed by MBIA Capital Management Corp., a wholly-owned subsidiary of MBIA Asset Management, LLC, which in turn is wholly-owned by MBIA, Inc. Shares of MBIA, Inc. are listed on the NYSE, and trade under the symbol “MBI”.

This announcement is not an offer to sell these securities and the Fund is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. The Rights Offering will be made only by means of a prospectus.

For further information contact the Information Agent, Georgeson Inc., at (888) 293-6908.