NEW YORK, Dec. 23, 2008 (GLOBE NEWSWIRE) -- The Board of Directors of PIMCO Municipal Advantage Fund Inc. (the "Fund" or "MAF") (NYSE:MAF), a closed-end management investment company, announced that at a meeting held on December 22, 2008, the Directors approved a Plan of Liquidation and Dissolution for the Fund pursuant to the Fund's discount policy, which was adopted in February 2008. Under the Fund's discount policy, if the Fund's common stock trades at an average discount to net asset value ("NAV") of greater than 0% over a calendar quarter, beginning with the quarter ended September 30, 2008, the Board, subject to its fiduciary obligations, is required to promptly take the steps necessary to enable common stockholders to realize NAV for their shares. The Fund's liquidation is subject to stockholder approval, and a proposal to approve the Plan of Liquidation and Dissolution will be included in the proxy statement for the Fund's Annual Meeting of Stockholders to be held on February 26, 2009.
The common stock of MAF has continued to trade at a discount to its NAV for most of 2008. Recently, from September 30, 2008 through December 9, 2008, the Fund's common stock traded at an average discount to NAV of approximately 5.98%. The Board of Directors and the Fund's investment manager and sub-adviser have been monitoring the trading discount and market conditions. At a meeting held on December 22, 2008 for the purpose of reviewing the Fund's trading discount and appropriate steps to be taken under the discount policy, the Board determined that it is in the best interests of the Fund and its stockholders to approve a Plan of Liquidation and Dissolution for the Fund. If the common and preferred stockholders approve the Plan of Liquidation and Dissolution, the directors and officers of the Fund will proceed to wind up the Fund's affairs as soon as reasonably practicable thereafter in a timeframe that allows for an orderly liquidation of portfolio holdings under then-current market conditions. The Fund can not predict at this time how long it will take to accomplish an orderly liquidation.
The Plan of Liquidation and Dissolution approved by the Board includes, among other things, the following steps:
* Orderly liquidation. As noted above, the Fund will undertake an orderly liquidation of its investment portfolio and other assets, taking into account then-current market conditions, in accordance with the Plan of Liquidation and Dissolution, and will pay or otherwise provide for all debts, expenses, liabilities and anticipated liabilities of the Fund. * Liquidating distributions. In accordance with its Bylaws, the Fund will pay to preferred shareholders the amount of the liquidation preference on their shares, plus all accumulated dividends. The remaining assets of the Fund (after the Fund's debts, expenses, reserves, liabilities and anticipated liabilities have been paid or otherwise provided for) will subsequently be distributed to the common stockholders in one or more distributions pro rata according to the number of shares held as of the record date. * Liquidation costs. Costs associated with the liquidation will be paid by the Fund.
The Fund intends to provide additional information regarding the Plan of Liquidation and Dissolution in the proxy statement for the Fund's Annual Meeting of Stockholders to be held on February 26, 2009.
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, uncertainty as to whether shareholder approval for the proposed liquidation of the Fund will be obtained, 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 their registration statements, By-laws and other governing documents as well as the Investment Company Act of 1940.