Leaving PIMCO.com

You are now leaving the PIMCO website.

Skip to Main Content
Press Release

PIMCO Tactical Income Fund Announces Exercise of Over-Allotment Option

Not for distribution to United States newswire services or for dissemination in the United States

TORONTO, (November 10, 2020) – PIMCO Canada Corp. (the “Manager”) is pleased to announce that PIMCO Tactical Income Fund (the “Fund”) (TSX: PTI.UN) has issued an additional 680,000 Class A Units of the Fund, at a price of $10 per Class A Unit, for gross proceeds of C$6,800,000, pursuant to the agents’ exercise of the over-allotment option. In total, the Fund has issued 13,815,866 Class A Units and 23,744,039 Class F Units pursuant to its initial offering, yielding gross proceeds of C$375,599,050.

Following closing of the Fund’s initial public offering on October 20, 2020, the Class F Units were reclassified as Class A Units on a one-for-one basis such that, currently, only Class A Units are outstanding. The Class A Units are listed on the Toronto Stock Exchange under the symbol PTI.UN.

The Fund has been created to invest in an actively managed portfolio of (i) debt obligations and other income-producing securities and instruments of any type and credit quality with varying maturities and related derivatives, and (ii) real estate-related investments. The Manager has retained Pacific Investment Management Company LLC (“PIMCO”), to provide investment management services to the Fund.

The Fund’s investment objectives are to provide holders of Units with current income as a primary objective and capital appreciation as a secondary objective, through various market cycles, by utilizing a dynamic asset allocation strategy among multiple sectors in the global credit markets, including corporate debt, mortgage-related and other asset-backed securities, government and sovereign debt, taxable municipal bonds, other fixed-, variable- and floating-rate income-producing securities of U.S. and global issuers, including emerging market issuers, and real estate-related investments.

The Fund will not have a fixed monthly distribution amount but intends to make cash distributions monthly. The Fund’s monthly distributions are initially targeted to be 6.0% to 6.5% per annum on the initial NAV of $10.00 per Unit (approximately $0.05 to $0.05417 per Unit per month or $0.60 to $0.65 per annum).Footnote1 The initial cash distribution will be payable to unitholders of record on December 31, 2020, and is expected to be paid on or about January 15, 2021.

The syndicate of Agents was co-led by CIBC Capital Markets, National Bank Financial Inc. and RBC Capital Markets, and includes BMO Capital Markets, Scotiabank, TD Securities Inc., Canaccord Genuity Corp., Industrial Alliance Securities, Raymond James Ltd., Richardson GMP, Desjardins Securities Inc., Echelon Wealth Partners Inc., Hampton Securities Ltd. and Manulife Securities Incorporated.

1The target annual distribution rate is not a projection or prediction of future results of the Fund. There can be no assurance that the Fund will achieve the target distribution rate or any particular level of return. Actual results may vary significantly from the target distribution rate.

Contact Corporate Communications for Media and Press Inquiries

PIMCO Press Release

Select Your Location


Americas

Asia Pacific

  • Japan

Europe, Middle East & Africa

  • Europe
Back to top