NEW YORK, Dec. 1, 2008 (GLOBE NEWSWIRE) -- PIMCO New York Municipal Income Fund (NYSE:PNF), PIMCO Municipal Income Fund II (NYSE:PML), PIMCO California Municipal Income Fund II (NYSE:PCK), PIMCO Municipal Income Fund III (NYSE:PMX), PIMCO California Municipal Income Fund III (NYSE:PZC) and PIMCO New York Municipal Income Fund III (NYSE:PYN) (each a "Fund" and collectively, the "Funds") announced today that the Funds have postponed the payment of the previously declared (November 3, 2008) dividends on the Funds' common shares scheduled for payment on December 1, 2008 and the declaration of the next dividends on the Funds' common shares, which would have been paid on December 31, 2008.
Accordingly, the declared dividends ($0.057, $0.065, $0.07, $0.07, $0.06 and $0.0525 per common share for PNF, PML, PCK, PMX, PZC and PYN, respectively) payable on December 1, 2008 to shareholders of record on November 13, 2008, with an ex-dividend date of November 10, 2008, will not be paid on December 1, 2008.
Continued severe market dislocations and recent further erosions in the municipal bond market have caused the values of the Funds' portfolio securities to decline and as a result the Funds' asset coverage ratios have fallen below the 200% Level (which is described below). A 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 or declaration of the common share dividend, in accordance with the Investment Company Act of 1940, as amended, and the Fund's By-laws.
The Funds intend to resume paying and declaring dividends as soon as possible. The Funds may consider other options to resume paying and declaring dividends in the future, which may include redemption of a portion of the Funds' ARPS. An announcement regarding actual dividend payment and declaration dates will be made at a future date.
The investment objective of each Fund is to provide current income exempt from federal income tax. PIMCO California Municipal Income Fund II and PIMCO California Municipal Income Fund III also seek to provide current income exempt from California state income taxes. PIMCO New York Municipal Income Fund and PIMCO New York Municipal Income Fund III also seek to provide income exempt from New York state and city income taxes. 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.