Two Pimco funds conclude tender offers for auction-rate preferreds

By Marisa Wong

Morgantown, W.Va., Nov. 20 – Pimco High Income Fund and Pimco Corporate & Income Strategy Fund announced that they accepted for payment all auction-rate preferred shares tendered under the previously announced offers that expired at 5 p.m. ET on Nov. 20.

Pimco High Income accepted for payment 7,601 auction-rate preferreds, or about 65% of its outstanding preferreds.

Pimco Corporate accepted for payment 4,539 auction-rate preferreds, or roughly 67% of its outstanding preferreds.

Each fund offered to purchase up to 100% of its outstanding auction-rate preferreds, with liquidation preference of $25,000 per share.

The purchase price was 83, or $20,750 per share, for Pimco High Income preferreds and 82.5, $20,625 per share, for Pimco Corporate preferreds.

Holders will also receive unpaid dividends accrued through the expiration date of the offers.

Auction-rate preferreds that were not tendered remain outstanding.

The tender agent is Deutsche Bank Trust Co. Americas (877 843-9767).

Pimco is an investment management firm that is based in New York and owned by Allianz SE, a Munich-based financial services provider.

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