NEW YORK, Nov. 26, 2008 (GLOBE NEWSWIRE) -- PIMCO California Municipal Income Fund II (NYSE:PCK) (the "Fund") may be required to delay the payment of the declared November dividend and the declaration of the next scheduled dividend on the Fund's common shares.
The Fund is not permitted to pay or declare common share dividends unless the Fund's auction rate preferred shares ("ARPS") have asset coverage of 200% ("200% Level") after payment or declaration of the common share dividend, in accordance with the Investment Company Act of 1940, as amended and the Fund's By-laws. Continued severe market dislocations have caused the value of the Fund's portfolio securities to decline and as a result the Fund's asset coverage ratio has fallen below the 200% Level.
If the 200% Level is not met on December 1, 2008, the Fund would have to postpone the payment of the previously declared November dividend and the declaration of the December dividend until the situation is corrected. Depending on market conditions, this coverage ratio may increase or decrease further. An announcement regarding actual dividend payment and declaration dates will be made at a future date.
The Fund's investment objective is to provide current income exempt from federal and California income tax. 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.
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 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 maintain leverage and to pay dividends to common shareholders is subject to the restrictions in its registration statements, By-laws and other governing documents.