NEW YORK, Jan. 9, 2009 (GLOBE NEWSWIRE) -- Nicholas-Applegate Convertible & Income Fund II (NYSE:NCZ) (the "Fund") announced today that it has declared a dividend of $.085 per common share for November 2008, December 2008, and January 2009. The dividend was lowered due to weakness in the high-yield and convertible bond markets in which the Fund primarily invests, and the reduction in the Fund's asset size due to the partial deleveraging of the Fund's auction rate preferred shares ("ARPS") which initially began on October 27, 2008 and concluded on December 31, 2008.
The dividends declared for November and December will be payable on January 23, 2009 to shareholders of record on January 20, 2009, with an ex-dividend date of January 15, 2009. The dividend declared for January 2009 will payable on February 2, 2009 to shareholders of record on January 20, 2009, with an ex-dividend date of January 15, 2009.
At December 31, 2008, the Fund's net assets were $580.3 million (inclusive of market value of Preferred Stock of $274 million).
This announcement follows an earlier press release dated November 3, 2008 postponing the declaration of the next dividend on the Fund's common shares, which would have been paid in December 2008, due to the Fund's asset coverage ratio falling below the 200% Level (defined below). As stated in the November 3, 2008 press release, a Fund is not permitted to pay or declare common share dividends unless the Fund's auction rate preferred shares ("ARPS") have a minimum asset coverage of 200% ("200% Level") after payment or declaration of the common share dividend, in accordance with the Fund's By-laws and the Investment Company Act of 1940, as amended. The Fund is now at a level in which it can declare the November 2008, December 2008 and January 2009 common share dividends.
The Fund's investment objective is to provide total return through a combination of capital appreciation and high current income. There can be no assurance that the Fund will achieve its stated objectives.
Allianz Global Investors Fund Management LLC, an indirect, wholly-owned subsidiary of Allianz Global Investors of America L.P., serves as the Fund's investment manager and is a member of Munich-based Allianz Group (NYSE:AZ). Nicholas-Applegate Capital Management LLC, an Allianz Global Investors Fund Management affiliate, serves as the Fund's sub-adviser. The Fund's daily 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 Fund's 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 Fund's 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 its 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 Fund's ability 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.