NEW YORK, Dec. 18, 2008 (GLOBE NEWSWIRE) -- PIMCO New York Municipal Income Fund (NYSE:PNF), PIMCO Municipal Income Fund II (NYSE:PML), PIMCO California Municipal Income Fund II (NYSE:PCK), PIMCO Municipal Income Fund III (NYSE:PMX), PIMCO California Municipal Income Fund III (NYSE:PZC) and PIMCO New York Municipal Income Fund III (NYSE:PYN) (each a "Fund" and collectively, the "Funds") today announced that each Fund will redeem, at par, a portion of its auction rate preferred shares ("ARPS"), on January 7, 2009 for PNF, beginning January 5, 2009 and concluding January 9, 2009 for PML, PCK, and PMX, beginning January 7, 2009 and concluding January 9, 2009 for PZC, and on January 6, 2009 for PYN.
As previously communicated in the press release dated December 1, 2008, 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, in accordance with each Fund's By-laws and the Investment Company Act of 1940, as amended. Continued severe market dislocations and recent further erosions in the municipal bond market have caused the values of the Funds' portfolio securities to decline, and as a result the Funds' asset coverage ratios have fallen below the 200% Level.
The redemptions have been approved by the Boards of Trustees and are intended, in part, to increase and satisfy asset coverage requirements, permitting the Funds to pay previously declared common share dividends and to declare and pay future common share dividends. Depending on market conditions, these coverage ratios may increase or decrease further. An announcement regarding actual dividend payment and declaration 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 New York Municipal Income Fund (PNF)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
APS in that
Series
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Series A January 7, $16,000,000
(CUSIP: 72200T301) 2009 (640 shares x $25,000) Approx. 25.4%
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PIMCO Municipal Income Fund II (PML)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
ARPS in that
Series
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Series A January 6, $27,600,000
(CUSIP: 72200W205) 2009 (1,104 shares x $25,000) Approx. 27.3%
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Series B January 7, $27,600,000
(CUSIP: 72200W304) 2009 (1,104 shares x $25,000) Approx. 27.3%
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Series C January 8, $27,600,000
(CUSIP: 72200W403) 2009 (1,104 shares x $25,000) Approx. 27.3%
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Series D January 9, $27,600,000
(CUSIP: 72200W502) 2009 (1,104 shares x $25,000) Approx. 27.3%
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Series E January 5, $27,600,000
(CUSIP: 72200W601) 2009 (1,104 shares x $25,000) Approx. 27.3%
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$138,000,000
Total (5,520 shares x $25,000) Approx. 27.3%
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PIMCO California Municipal Income Fund II (PCK)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
ARPS in that
Series
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Series A January 5, $17,200,000
(CUSIP: 7200M207) 2009 (688 shares x $25,000)
------------------------------------------------------ Approx. 37.3%
January 6, $2,200,000
2009 (88 shares x $25,000)
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Series B January 5, $17,200,000
(CUSIP: 72200M306) 2009 (688 shares x $25,000)
------------------------------------------------------ Approx. 37.3%
January 7, $2,200,000
2009 (88 shares x $25,000)
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Series C January 5, $17,200,000
(CUSIP: 72200M405) 2009 (688 shares x $25,000)
------------------------------------------------------ Approx. 37.3%
January 8, $2,200,000
2009 (88 shares x $25,000)
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Series D January 5, $17,200,000
(CUSIP: 72200M504) 2009 (688 shares x $25,000)
------------------------------------------------------ Approx. 37.3%
January 9, $2,200,000
2009 (88 shares x $25,000)
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Series E January 5, $19,400,000
(CUSIP: 72200M603) 2009 (776 shares x $25,000) Approx. 37.3%
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$97,000,000
Total (3,880 shares x $25,000) Approx. 37.3%
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PIMCO Municipal Income Fund III (PMX)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
ARPS in that
Series
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Series A January 6, $16,200,000
(CUSIP: 7221A202) 2009 (648 shares x $25,000) 30.0%
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Series B January 7, $16,200,000
(CUSIP: 7221A301) 2009 (648 shares x $25,000) 30.0%
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Series C January 8, $16,200,000
(CUSIP: 7221A400) 2009 (648 shares x $25,000) 30.0%
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Series D January 9, $16,200,000
(CUSIP: 7221A509) 2009 (648 shares x $25,000) 30.0%
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Series E January 5, $16,200,000
(CUSIP: 7221A608) 2009 (648 shares x $25,000) 30.0%
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$81,000,000
Total (3,240 shares x $25,000) 30.0%
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PIMCO California Municipal Income Fund III (PZC)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
ARPS in that
Series
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Series A January 7, $30,000,000
(CUSIP: 72201C208) 2009 (1,200 shares x $25,000) Approx. 32.4%
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Series B January 9, $30,000,000
(CUSIP: 72201C307) 2009 (1,200 shares x $25,000) Approx. 32.4%
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$60,000,000
Total (2,400 shares x $25,000) Approx. 32.4%
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PIMCO New York Municipal Income Fund III (PYN)
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Series Redemption Redemption Amount Redemption
Date Amount as a %
of Outstanding
ARPS in that
Series
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Series A January 6, $15,000,000
(CUSIP: 72201E204) 2009 (600 shares x $25,000) Approx. 31.9%
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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 investment objective of each Fund is to provide current income exempt from federal income tax. PIMCO California Municipal Income Fund II and PIMCO California Municipal Income Fund III also seek to provide current income exempt from California state income taxes. PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III also seek to provide income exempt from New York state and city income taxes. 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' 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 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.