NEW YORK, March 2, 2009 (GLOBE NEWSWIRE) -- PIMCO Corporate Income Fund (NYSE:PCN), PIMCO Corporate Opportunity Fund (NYSE:PTY), and PIMCO High Income Fund (NYSE:PHK) (each a "Fund" and collectively, the "Funds") announced today that the Funds have postponed the payment of the previously declared (February 2, 2009) dividends on the Funds' common shares scheduled for payment on March 2, 2009, as well as the declaration of their next scheduled common share dividends which would have been paid in April 2009.
Accordingly, the declared dividends ($0.10625, $0.11500 and $0.121875 per common share for PCN, PTY and PHK, respectively) payable on March 2, 2009 to shareholders of record on February 12, 2009, with an ex-dividend date of February 10, 2009, will not be paid today.
The Funds are not permitted to pay or declare common share dividends unless the Funds' auction rate preferred shares ("ARPS") have asset coverage of at least 200% ("200% Level") after the payment or the declaration of the common share dividend, in accordance with the Funds' By-laws and the Investment Company Act of 1940, as amended.
The Funds intend to resume paying and declaring dividends as soon as possible. While the Funds' asset coverage ratios are currently below the 200% Level, as previously communicated in a press release dated February 27, 2009, the Funds are partially redeeming ARPS. The redemptions are intended to increase and maintain asset coverage of the Funds' ARPS above the 200% Level, permitting the Funds to pay their previously declared February common share dividends and to declare and pay future common share dividends. Depending on market conditions, the coverage ratios may increase or decrease further. An announcement regarding actual dividend payment and declaration dates will be made at a future date.
The primary objective of PCN is to seek high current income with secondary objectives of capital preservation and appreciation. The investment objective of PTY is to seek maximum total return through a combination of current income and capital appreciation. PHK's primary investment objective is to seek high current income. Capital appreciation is a secondary objective. 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 and net asset values per share are available by calling the Funds' 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 Funds' 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 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, as amended.