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PIMCO High Income Fund Postpones Payment of Declared Common
Share Dividend and Declaration of Next Monthly Dividend
NEW YORK, Nov. 3, 2008 (GLOBE NEWSWIRE) -- PIMCO High Income Fund
(NYSE:PHK) (the "Fund") announced today that it has postponed the
payment of the previously declared (October 1, 2008) dividend on the
Fund's common shares scheduled for payment on November 3, 2008 and the
declaration of the next dividend on the Fund's common shares, which
would have been paid in December 2008, due to recent market conditions
and requirements under the Fund's By-laws and the Investment Company
Act of 1940, as amended (the "1940 Act").
Accordingly, the declared dividend ($0.121875 per common share) payable
on November 3, 2008 to shareholders of record on October 11, 2008, with
an ex-dividend date of October 8, 2008, will not be paid on November 3,
2008.
In accordance with the 1940 Act and the Fund's By-laws, the 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 of the common share dividend or
declaration of the common share dividend. Due to current market
conditions, the value of the Fund's portfolio securities has declined,
which has caused the Fund's asset coverage ratio to fall below the 200%
Level.
As the Fund announced in a press release dated October 24, 2008, the
Fund's ability to earn sufficient income to pay the previously declared
dividend or declare the December dividend was not impacted by this
decline in the asset coverage ratio or market conditions. Therefore, if
market conditions improve and the value of the Fund's assets increases
to a point where the Fund has adequate asset coverage, the Fund intends
to pay the common share dividend previously declared and declare the
dividend scheduled to be declared today. The Fund will make a
subsequent public announcement as to the payment of the November common
share dividend and the declaration of future dividends. In the event
that the Fund's asset coverage does not increase to at least the 200%
Level on or before a cure date as specified in the By-laws, the Fund
will redeem, within 35 days after such cure date, an amount of ARPS
sufficient to bring the asset coverage back up to the 200% Level.
PHK's investment objective is to seek high current income. There can be
no assurance that the Fund will achieve its stated objective.
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). Pacific Investment Management Company 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 and net asset
values per share are available by calling the Fund's shareholder
servicing agent at (800) 331-1710. This information, as well as updated
portfolio statistics and performance, is available at
http://www.allianzinvestors.com.
CONTACT: Christoph Hofmann
(800) 285-4086
Blash wrote:
> PIMCO High Income Fund Postpones Payment of Declared Common
> Share Dividend and Declaration of Next Monthly Dividend
>
> NEW YORK, Nov. 3, 2008 (GLOBE NEWSWIRE) -- PIMCO High Income Fund
> (NYSE:PHK) (the "Fund") announced today that it has postponed the
> payment of the previously declared (October 1, 2008) dividend on the
> Fund's common shares scheduled for payment on November 3, 2008 and the
> declaration of the next dividend on the Fund's common shares, which
> would have been paid in December 2008, due to recent market conditions
> and requirements under the Fund's By-laws and the Investment Company
> Act of 1940, as amended (the "1940 Act").
>
> Accordingly, the declared dividend ($0.121875 per common share) payable
> on November 3, 2008 to shareholders of record on October 11, 2008, with
> an ex-dividend date of October 8, 2008, will not be paid on November 3,
> 2008.
>
> In accordance with the 1940 Act and the Fund's By-laws, the 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 of the common share dividend or
> declaration of the common share dividend. Due to current market
> conditions, the value of the Fund's portfolio securities has declined,
> which has caused the Fund's asset coverage ratio to fall below the 200%
> Level.
>
> As the Fund announced in a press release dated October 24, 2008, the
> Fund's ability to earn sufficient income to pay the previously declared
> dividend or declare the December dividend was not impacted by this
> decline in the asset coverage ratio or market conditions. Therefore, if
> market conditions improve and the value of the Fund's assets increases
> to a point where the Fund has adequate asset coverage, the Fund intends
> to pay the common share dividend previously declared and declare the
> dividend scheduled to be declared today. The Fund will make a
> subsequent public announcement as to the payment of the November common
> share dividend and the declaration of future dividends. In the event
> that the Fund's asset coverage does not increase to at least the 200%
> Level on or before a cure date as specified in the By-laws, the Fund
> will redeem, within 35 days after such cure date, an amount of ARPS
> sufficient to bring the asset coverage back up to the 200% Level.
>
> PHK's investment objective is to seek high current income. There can be
> no assurance that the Fund will achieve its stated objective.
>
> 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). Pacific Investment Management Company 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 and net asset
> values per share are available by calling the Fund's shareholder
> servicing agent at (800) 331-1710. This information, as well as updated
> portfolio statistics and performance, is available at
> http://www.allianzinvestors.com.
>
> CONTACT: Christoph Hofmann
> (800) 285-4086
>
This could not be good..
-=DirtBagŠ wrote on 11/3/08 2:31 PM:
> Blash wrote:
>> PIMCO High Income Fund Postpones Payment of Declared Common
>> Share Dividend and Declaration of Next Monthly Dividend
>>
>> NEW YORK, Nov. 3, 2008 (GLOBE NEWSWIRE) -- PIMCO High Income Fund
>> (NYSE:PHK) (the "Fund") announced today that it has postponed the
>> payment of the previously declared (October 1, 2008) dividend on the
>> Fund's common shares scheduled for payment on November 3, 2008 and the
>> declaration of the next dividend on the Fund's common shares, which
>> would have been paid in December 2008, due to recent market conditions
>> and requirements under the Fund's By-laws and the Investment Company
>> Act of 1940, as amended (the "1940 Act").
>>
>> Accordingly, the declared dividend ($0.121875 per common share) payable
>> on November 3, 2008 to shareholders of record on October 11, 2008, with
>> an ex-dividend date of October 8, 2008, will not be paid on November 3,
>> 2008.
>>
>> In accordance with the 1940 Act and the Fund's By-laws, the 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 of the common share dividend or
>> declaration of the common share dividend. Due to current market
>> conditions, the value of the Fund's portfolio securities has declined,
>> which has caused the Fund's asset coverage ratio to fall below the 200%
>> Level.
>>
>> As the Fund announced in a press release dated October 24, 2008, the
>> Fund's ability to earn sufficient income to pay the previously declared
>> dividend or declare the December dividend was not impacted by this
>> decline in the asset coverage ratio or market conditions. Therefore, if
>> market conditions improve and the value of the Fund's assets increases
>> to a point where the Fund has adequate asset coverage, the Fund intends
>> to pay the common share dividend previously declared and declare the
>> dividend scheduled to be declared today. The Fund will make a
>> subsequent public announcement as to the payment of the November common
>> share dividend and the declaration of future dividends. In the event
>> that the Fund's asset coverage does not increase to at least the 200%
>> Level on or before a cure date as specified in the By-laws, the Fund
>> will redeem, within 35 days after such cure date, an amount of ARPS
>> sufficient to bring the asset coverage back up to the 200% Level.
>>
>> PHK's investment objective is to seek high current income. There can be
>> no assurance that the Fund will achieve its stated objective.
>>
>> 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). Pacific Investment Management Company 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 and net asset
>> values per share are available by calling the Fund's shareholder
>> servicing agent at (800) 331-1710. This information, as well as updated
>> portfolio statistics and performance, is available at
>> http://www.allianzinvestors.com.
>>
>> CONTACT: Christoph Hofmann
>> (800) 285-4086
>>
>
> This could not be good..
No.....it's not......
From what I can figure out, to pay the dividend, Pimco will have to redeem
some/all of their ARPS and to do that, they will have to liquidate some of
the portfolio (read:"junk bonds") into an already weak market.......
I've always considered Pimco as a very smart group and if they're in this
spot, I wonder about some of their "weak sisters".......
Pimp-co has been out advocating and generally "pimping' the junk
market
as a sure thing with the lowest defaults of sub investment grade debt
in all
of history.
\
This is the next stage of the breakdown.
The shell game that depends on borrowing and creative accounting to
keep the
corporate junk plates spinning suddenly finds a credit crunch that
deprives it
of further borrowings to make future payments.
Car lease defaults are just one small piece of the puzzle.
Now you understand why banks don't wanna lend.
What is shortable and has the most downside or possible
bankruptcy . . .
\don't make me look it up for myself (Goldman: GS holds a boatload of
this shit.)
LOL, now we know why Pauly looks like he's choking on something and
that
something is junk.
Also explains Buffet insisting on the put option when he so kindly
'invested'
$25 ago.
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