Leading Independent Proxy Advisory Firm Institutional Shareholder Services (ISS) Recommends Change at the Boards of PIMCO Inc...
July 22 2014 - 1:47PM
Business Wire
ISS recommends that ARPS holders vote FOR
Brigade’s preferred shares trustee nominees
Brigade Capital Management, LLC, or “Brigade”, an investment
advisor whose affiliates hold approximately 32.8% of the auction
rate preferred shares of PIMCO Income Strategy Fund and
approximately 25.9% of the auction rate preferred shares of PIMCO
Income Strategy Fund II (together, the “Funds”), announced today
that Institutional Shareholder Services, or “ISS”, is recommending
that the preferred shareholders of PFL vote in favor of the
election of Alan Bruce Miller and Marti Murray, Brigade’s nominees,
to serve as the preferred shares trustees of PFL and that the
preferred shareholders of PFN vote in favor of the election of
Marti Murray, Brigade’s nominee, to serve as the preferred shares
trustee of PFN.
In its reports dated July 18, 2014, ISS concluded that
“[s]upport of ARPS holders FOR Brigade's nominees, Alan Bruce
Miller and Marti Murray, is warranted given that the nomination of
Mr. Miller and Ms. Murray would further influence the [Funds’
boards] to provide liquidity for the holders of ARPS and by the
[Funds’] failure to provide liquidity to ARPS holders at levels
consistent with, much less higher than, industry average.
Additionally, a WITHHOLD recommendation for the [Funds’] incumbent
nominees also appears warranted under standard ARPS policy for the
same failure to provide ARPS liquidity at or above industry average
levels.” (1)
In response to ISS’ report, Donald E. Morgan, the managing
member of Brigade, issued the following statement: “We are
extremely pleased that ISS is endorsing change at the boards of the
Funds by recommending Brigade’s nominees for election to the boards
of the Funds. We believe that there are very attractive financing
alternatives to the preferred shares and that the Funds’ trustees
could pursue these financing opportunities to provide preferred
shareholders with a redemption of or offer to repurchase their
securities and at the same time protect the interests of the common
shareholders. While interest rates remain low by historical
standards, they continue to increase. We believe that the recent
market place changes confirm the wisdom of redemption, yet the
Funds’ trustees continue to resist this logical step already taken
by most other funds. In our view, ISS’ reports provide independent
validation that the boards should take action to immediately redeem
the preferred shares.”
VOTE THE GREEN PROXY CARD TO MAKE A DIFFERENCE IN THE FUNDS’
FUTURE
Brigade urges all preferred shareholders to follow ISS’
recommendation for change on the boards of the Funds – it is
important that the preferred shareholders of PFL return the
GREEN proxy card and vote FOR Alan Bruce Miller and
Marti Murray and that the preferred shareholders of PFN return the
GREEN proxy card and vote FOR Marti Murray. The
preferred shareholders of the Funds SHOULD NOT RETURN THE WHITE
PROXY CARDS or any other proxy cards furnished to them on
behalf of the Funds.
If you have already returned a proxy card, you have every right
to change your vote by signing, dating, and returning a later dated
GREEN proxy card or by voting in person at the upcoming
annual meeting.
Investor Contact:
Alliance Advisors LLC200 Broadacres Drive,
3rd floorBloomfield, NJ 07003Call Toll Free: 855-973-0092Banks
and Brokers Call Collect: 973-873-7710
(1) Permission to use quotations was neither sought nor
obtained.
About Brigade Capital Management, LP
Brigade Capital Management, LP is an SEC-registered investment
advisor whose products include long/short credit, distressed debt
and traditional high yield. The firm is headquartered in New York
and had $16 billion under management as of July 14, 2014 across its
various products and credit-themed strategies.
Additional Information
THE PARTICIPANTS IN ANY SOLICITATION OF PROXIES RELATING HERETO
ARE THE SAME AS THE PARTICIPANTS IDENTIFIED IN THE DEFINITIVE PROXY
STATEMENT FILED BY BRIGADE WITH RESPECT TO THE FUNDS ON JUNE 30,
2014 (THE “PROXY STATEMENT”). ACCORDINGLY, PREFERRED SHAREHOLDERS
ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATED
TO THE SOLICITATION OF PROXIES BY BRIGADE FROM THE PREFERRED
SHAREHOLDERS OF THE FUNDS BECAUSE THEY CONTAIN IMPORTANT
INFORMATION. PREFERRED SHAREHOLDERS MAY OBTAIN A COPY OF THE PROXY
STATEMENT AT NO CHARGE ON THE SECURITIES AND EXCHANGE COMMISSION'S
WEBSITE AT HTTP://WWW.SEC.GOV.
Alliance Advisors LLCCall Toll Free: 855-973-0092Banks and
Brokers Call Collect: 973-873-7710
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