PIMCO Dynamic Credit Income Fund Announces Partial Exercise of Over-Allotment Option
NEW YORK--(BUSINESS WIRE)-- PIMCO Dynamic Credit Income Fund (the "Fund") announced today that the underwriters of its initial public offering of common shares (the "Underwriters"), which was completed on January 31, 2013, have completed the second and final partial exercise of their over-allotment option. In total, the Underwriters purchased an additional 16,204,500 common shares of the Fund. Gross proceeds from these additional shares are $405,112,500, which brings the total amount raised in the Fund's initial public offering to $3,430,112,500 (before deduction of the sales load and offering expenses). The Fund's common shares are listed on the New York Stock Exchange under the symbol "PCI."
The closing of the second over-allotment option occurred today, entitling the shares to receive the Fund's first declared dividend, payable to shareholders of record today, March 18, 2013. As previously announced, the Fund will pay an initial monthly dividend of $0.15625 per common share, representing an annualized distribution yield of 7.50% based on the $25.00 IPO price. The dividend will be payable on April 1, 2013.
The Fund is a non-diversified closed-end fund seeking current income as a primary objective and capital appreciation as a secondary objective. The Fund seeks to achieve its investment objectives by utilizing a dynamic asset allocation strategy among multiple fixed-income sectors in the global credit markets, including corporate debt, mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds and other fixed-, variable- and floating-rate income-producing securities of U.S. and foreign issuers, including emerging market issuers. The Fund may invest in investment grade debt securities and below investment grade debt securities (commonly referred to as "high yield" securities or "junk bonds"), including securities of stressed issuers. The Fund is managed according to strategies that focus on credit quality analysis, duration management and other risk management techniques. The Fund may invest without limit in illiquid securities. The Fund utilizes leverage as part of its investment strategy.
Pacific Investment Management Company LLC ("PIMCO"), the Fund's sub-adviser, employs an active approach to allocation among multiple fixed-income sectors based on, among other things, market conditions, valuation assessments and economic outlook, credit market trends and other economic factors. The Fund focuses on seeking the best income generating investment ideas across multiple fixed income sectors, with an emphasis on seeking opportunities in developed and emerging global credit markets.
Allianz Global Investors Fund Management LLC ("AGIFM") is the Fund's investment manager, responsible for managing the Fund's investment activities, business affairs and other administrative matters. AGIFM is an indirect, wholly-owned subsidiary of Allianz Asset Management of America L.P. and is a member of Munich-based Allianz Group. As previously indicated, PIMCO, an AGIFM affiliate, is the Fund's sub-adviser and is responsible for managing the Fund's portfolio investments.
The lead managers of the underwriting syndicate were UBS Investment Bank, Citigroup, Morgan Stanley and Wells Fargo Securities.
The Fund's daily New York Stock Exchange closing price, net asset value per share, as well as other information is available at www.allianzinvestors.com/closedendfunds or by calling the Fund's shareholder servicing agent at (800) 254-5197.
The Fund is a newly organized registered closed-end investment company with very limited operating history. Shares of closed-end investment companies, such as the Fund, usually trade on a national stock exchange, and these shares frequently trade at a discount to their net asset value, which may increase investors' risk of loss.
Because of the risks associated with investing in high yield securities, foreign and emerging market securities (and related exposure to foreign currencies) and mortgage-related and other asset-backed securities, and using leverage, an investment in the Fund should be considered speculative, involves a high degree of risk and should not constitute a complete investment program. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing.
There is no assurance that the Fund will achieve its investment objectives or be able to structure its investment portfolio as anticipated.
This document is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale or offer of these securities, in any jurisdiction where such sale or offer is not permitted.
Investing in the Fund involves risk. Principal loss is possible.
The Fund is a "non-diversified" investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are "diversified." Accordingly, the Fund is more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.
Investments in debt securities typically decline in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets. Investments in lower rated and unrated securities present a greater risk of loss to principal and interest than higher rated securities. Debt securities of below investment grade quality are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as "high yield" securities or "junk bonds."
Past performance is not indicative of future results.
This material may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates and information about possible or future results related to the Fund, market or regulatory developments. The views expressed herein are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and the Fund undertakes no obligation to update the views expressed herein. While we have gathered this information from sources believed to be reliable, the Fund cannot guarantee the accuracy of the information provided. Any discussions of specific securities should not be considered a recommendation to buy or sell those securities. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Fund's trading intent. Information included herein is not an indication of the Fund's future portfolio composition or the extent to which the Fund may utilize leverage.
For Information on PIMCO Closed-End Funds:
Financial Advisors: (800) 628-1237
Shareholders: (800) 254-5197
Media Relations: (212) 739-3501
KEYWORDS: United States North America New York
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