Two Advent Claymore convertible funds begin tender offer for AMPS

By Toni Weeks

San Diego, Nov. 9 - Advent Claymore Convertible Securities and Income Fund and Advent Claymore Convertible Securities and Income Fund II each began a tender offer for up to 100% of its outstanding auction market preferred shares (AMPS), according to a press release from Guggenheim Investments.

Each closed-end fund is offering 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, 5 p.m. ET on Dec. 12.

Each tender offer is 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 intends to refinance 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. Each fund's total leverage may vary over time, however, 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.

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