NEW YORK, Feb. 27, 2009 (GLOBE NEWSWIRE) -- PIMCO Corporate Income Fund (NYSE:PCN), PIMCO Corporate Opportunity Fund (NYSE:PTY), PIMCO High Income Fund (NYSE: PHK), PIMCO Floating Rate Income Fund (NYSE:PFL), and PIMCO Floating Rate Strategy Fund (NYSE:PFN) (each a "Fund" and collectively, the "Funds") today announced each Fund will redeem, at par, a portion of its Auction Rate Preferred Shares ("ARPS"), beginning March 16, 2009 for PCN, PTY, PHK and PFN and beginning March 18, 2009 for PFL, and concluding for all Funds on March 20, 2009. In addition, PFL and PFN may be required to delay the declaration of their next scheduled common share monthly dividends.
As previously communicated in the press release dated February 25, 2009 for PCN, PTY and PHK and in accordance with each Fund's By-laws and the Investment Company Act of 1940, as amended, a Fund is not permitted to pay or declare common share dividends unless the Fund's ARPS have a minimum asset coverage of 200% ("200% Level") after payment or declaration of the common share dividend.
As previously reported, if PCN, PTY or PHK does not have asset coverage of at least the 200% Level on March 2, 2009, that Fund will have to postpone the payment of its previously declared February 2009 common share dividend and the declaration of its March 2009 dividend until the Fund's asset coverage ratio is at or above the 200% Level. In addition, if PFL's or PFN's asset coverage does not increase to at least the 200% Level on March 6, 2009, that Fund will have to postpone the declaration of its March 2009 common share dividend until the Fund's asset coverage ratio is at or above the 200% Level.
The decision to redeem a portion of the Funds' ARPS was made at the recommendation of the Funds' manager and sub-adviser and approved by the Boards of Trustees. The redemptions are intended to increase and maintain asset coverage of the Funds' ARPS above the 200% Level, permitting PCN, PTY and PHK to pay their previously declared February common share dividends and PCN, PTY, PHK, PFL and PFN to declare and pay future common share dividends. Depending on market conditions, the coverage ratios may increase or decrease further. An announcement regarding actual dividend payment and declarations dates will be made at a future date.
Each Fund intends to redeem the following series and amounts of ARPS at their full liquidation preference of $25,000 per share plus accumulated but unpaid dividends up to their respective dates of redemption:
PIMCO Corporate Income Fund (PCN)
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Redemption
Amount as a % of
Redemption Outstanding ARPS
Series Date Redemption Amount in that Series
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Series M (CUSIP: Mar. 17, $12,400,000 Approx. 23.0%
72200U209) 2009 (496 shares x $25,000)
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Series T (CUSIP: Mar. 18, $12,400,000 Approx. 23.0%
72200U308) 2009 (496 shares x $25,000)
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Series W (CUSIP: Mar. 19, $12,400,000 Approx. 23.0%
72200U407) 2009 (496 shares x $25,000)
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Series TH (CUSIP: Mar. 20, $12,400,000 Approx. 23.0%
72200U506) 2009 (496 shares x $25,000)
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Series F (CUSIP: Mar. 16, $12,400,000 Approx. 23.0%
72200U605) 2009 (496 shares x $25,000)
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$62,000,000
Total (2,480 shares x $25,000) Approx. 23.0%
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PIMCO Corporate Opportunity Fund (PTY)
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Redemption
Amount as a % of
Redemption Outstanding ARPS
Series Date Redemption Amount in that Series
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Series M (CUSIP: Mar. 17, $20,200,000
72201B200) 2009 (808 shares x $25,000) Approx. 20.4%
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Series T (CUSIP: Mar. 18, $20,200,000
72201B309) 2009 (808 shares x $25,000) Approx. 20.4%
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Series W (CUSIP: Mar. 19, $20,200,000
72201B408) 2009 (808 shares x $25,000) Approx. 20.4%
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Series TH (CUSIP: Mar. 20, $20,200,000
72201B507) 2009 (808 shares x $25,000) Approx. 20.4%
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Series F (CUSIP: Mar. 16, $20,200,000
72201B606) 2009 (808 shares x $25,000) Approx. 20.4%
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$101,000,000
Total (4,040 shares x $25,000) Approx. 20.4%
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PIMCO High Income Fund (PHK)
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Redemption
Amount as a % of
Redemption Outstanding ARPS
Series Date Redemption Amount in that Series
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Series M (CUSIP: Mar. 17, $19,200,000
722014206) 2009 (768 shares x $25,000) Approx. 20.8%
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Series T (CUSIP: Mar. 18, $19,200,000
722014305) 2009 (768 shares x $25,000) Approx. 20.8%
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Series W (CUSIP: Mar. 19, $19,200,000
722014404) 2009 (768 shares x $25,000) Approx. 20.8%
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Series TH(CUSIP: Mar. 20, $19,200,000
722014503) 2009 (768 shares x $25,000) Approx. 20.8%
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Series F(CUSIP: Mar. 16, $19,200,000
722014602) 2009 (768 shares x $25,000) Approx. 20.8%
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$96,000,000
Total (3,840 shares x $25,000) Approx. 20.8%
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PIMCO Floating Rate Income Fund (PFL)
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Redemption
Amount as a % of
Redemption Outstanding ARPS
Series Date Redemption Amount in that Series
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Series T (CUSIP: Mar. 18, $7,675,000
72201H207) 2009 (307 shares x $25,000) Approx. 19.7%
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Series W (CUSIP: Mar. 19, $7,675,000
72201H306) 2009 (307 shares x $25,000) Approx. 19.7%
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Series TH (CUSIP: Mar. 20, $7,675,000
72201H405) 2009 (307 shares x $25,000) Approx. 19.7%
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$23,025,000
Total (921 shares x $25,000) Approx. 19.7%
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PIMCO Floating Rate Strategy Fund (PFN)
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Redemption
Amount as a % of
Redemption Outstanding ARPS
Series Date Redemption Amount in that Series
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Series M (CUSIP: Mar. 17, $12,000,000
72201J500) 2009 (480 shares x $25,000) Approx. 24.2%
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Series T (CUSIP: Mar. 18, $12,000,000
72201J203) 2009 (480 shares x $25,000) Approx. 24.2%
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Series W (CUSIP: Mar. 19, $12,000,000
72201J302) 2009 (480 shares x $25,000) Approx. 24.2%
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Series TH (CUSIP: Mar. 20, $12,000,000
72201J401) 2009 (480 shares x $25,000) Approx. 24.2%
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Series F (CUSIP: Mar. 16, $12,000,000
72201J609) 2009 (480 shares x $25,000) Approx. 24.2%
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$60,000,000
Total (2,400 shares x $25,000) Approx. 24.2%
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The Funds are partially redeeming their ARPS on a pro-rata basis by series. The Depositary Trust Company ("DTC"), holder of record of the ARPS, determines how the redemption will be allocated among each participant broker-dealer account that holds ARPS and each participant broker-dealer determines how to allocate each redemption among the beneficial holders of the ARPS held by it. The procedures used by participant broker-dealers to allocate redeemed ARPS among their clients may differ from each other and from the procedures used by DTC.
The primary objective of PCN is to seek high current income with secondary objectives of capital preservation and appreciation. The investment objective of PTY is to seek maximum total return through a combination of current income and capital appreciation. PHK's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. PFL's and PFN's investment objective is to seek high current income consistent with the preservation of capital. There can be no assurance that the Funds will meet their objectives.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Funds' investment manager and is a member of Munich-based Allianz Group (NYSE:AZ). Pacific Investment Management Company LLC, an Allianz Global Investors Fund Management affiliate, serves as the Funds' sub-adviser.
The Funds' New York Stock Exchange closing prices, net asset values per share, as well as other information, including updated portfolio statistics and performance, is available at http://www.allianzinvestors.com or by calling the Funds' shareholder servicing agent at (800) 331-1710.
Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from further declines in the securities markets and in the Funds' performance, a general downturn in the economy, inability to obtain leverage to replace ARPS that have been redeemed, competition from other companies, changes in government policy or regulation, inability to attract or retain key employees, inability to implement their operating strategy and/or acquisition strategy, and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. The Funds' ability to maintain leverage and to pay dividends to common shareholders is subject to the restrictions in their registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940, as amended.