By Marisa Wong
Madison, Wis., Dec. 13 - Advent Claymore Convertible Securities and Income Fund (AVK) and Advent Claymore Convertible Securities and Income Fund II (AGC) said the previously announced tender offers for up to 100% of their respective outstanding auction market preferred shares (AMPS) expired at 5 p.m. ET on Dec. 12.
According to a press release from Guggenheim Investments, AVK accepted for payment 10,417 tendered AMPS, or 99.4% of its outstanding AMPS. AGC accepted 6,776 tendered AMPS, or 99.7% of its outstanding AMPS. The breakdown of AMPS tendered is provided in the table below.
As reported, each closed-end fund offered to purchase its AMPS at 99% of the liquidation preference, or $24,750 per $25,000 share, plus accrued dividends through the expiration date of the offer.
Each tender offer was conditioned on at least 70% of the respective fund's outstanding AMPS being tendered as well as the receipt of funding under committed financing arrangements.
According to the release, each fund is refinancing its AMPS through alternative forms of leverage, including borrowings and reverse repurchase agreement transactions, with the total amount of outstanding leverage maintained at a level roughly equal to the aggregate liquidation preference of the fund's currently outstanding AMPS. However, each fund's total leverage may vary over time, the release noted.
Okapi Partners LLC (877 274-8654) is the funds' information agent.
New York-based Advent Capital Management, LLC serves as the investment manager to both funds.
| Fund | Series | Cusip | AMPS tendered | AMPS outstanding
|
| AVK | Series M7 | 00764C208 | 2,023 | 25
|
| AVK | Series T28 | 00764C307 | 2,046 | 2
|
| AVK | Series W7 | 00764C406 | 2,018 | 30
|
| AVK | Series TH28 | 00764C505 | 2,046 | 2
|
| AVK | Series F7 | 00764C604 | 1,141 | 3
|
| AVK | Series W28 | 00764C703 | 1,143 | 1
|
| AGC | Series T7 | 007639206 | 3,390 | 10
|
| AGC | Series W7 | 007639305 | 3,386 | 14
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
