NEW YORK, April 1, 2009 (GLOBE NEWSWIRE) -- PIMCO Municipal Advantage Fund Inc. (NYSE:MAF) (the "Fund") announced today the Fund will redeem, at par, all of its Auction Rate Preferred Stock ("ARPS"). The redemption is scheduled to occur on April 24, 2009.
This announced redemption of ARPS is the first stage of a two-step process to liquidate the Fund, which was communicated in a press release dated March 17, 2009. If you are a Preferred Stockholder, you will receive the full liquidation preference of $50,000 per each share plus accumulated but unpaid dividends up to the date of redemption:
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Redemption Amount
Redemption as a % of
Series Date Redemption Amount Outstanding ARPS
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Series M (CUSIP: April 24, $55,000,000 100%
722015203) 2009 (1100 shares x $50,000)
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Total $55,000,000 100%
(1100 shares x $50,000)
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Following redemption of the ARPS, the remaining assets of the Fund will be distributed to the common stockholders and termination of the Fund will occur as soon as reasonably practicable subject to market conditions and other relevant factors. It is anticipated that the liquidation will be completed on or about July 31, 2009, yet the Fund may extend this date or make distributions on multiple dates. Timing of final distribution(s) to the common stockholders will be announced in a future press release.
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 price, net asset value per share, as well as other information, including updated portfolio statistics and performance is available at 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, 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 Fund's ability to pay dividends to common shareholders is subject to the restrictions in its registration statement, By-laws and other governing documents as well as the Investment Company Act of 1940, as amended.