PIMCO Multi-Sector Income Fund Announces Exercise of Over-Allotment Option
TORONTO, (March 29, 2022) – PIMCO Canada Corp. (the “Manager”) is pleased to announce that PIMCO Multi-Sector Income Fund (the “Fund”) (TSX: PIX.UN) has issued an additional 1,112,602 Class A Units of the Fund, at a price of $10 per Class A Unit, for gross proceeds of $11,126,020, pursuant to the agents’ exercise of the over-allotment option. In total, the Fund has issued 8,701,987 Class A Units and 13,910,615 Class F Units (together with the Class A Units, the “IPO Units”) pursuant to its initial offering, and 3,000,000 Class P Units pursuant to a private placement, yielding aggregate gross proceeds of $256,126,020.
Following closing of the Fund’s initial public offering on March 10, 2022, the Class F Units were reclassified as Class A Units on a one-for-one basis such that, currently, only Class A Units and Class P Units are outstanding. The Class A Units are listed on the Toronto Stock Exchange under the symbol PIX.UN.
The Class P Units were not offered, qualified or issued under a prospectus or pursuant to the agency agreement with the syndicate of Agents. The Class P Units will be reclassified as Class A Units on or about September 12, 2022.
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, 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 5.5% to 6.25% per annum on the initial NAV of $10.00 per Unit (approximately $0.04583 to $0.05208 per Unit per month or $0.55 to $0.625 per annum).1 The initial cash distribution will be payable to unitholders of record on May 31, 2022, and is expected to be paid on or about June 15, 2022.
The syndicate of Agents in respect of the offering of IPO Units was co-led by RBC Capital Markets, National Bank Financial Inc. and CIBC Capital Markets, and included TD Securities Inc., BMO Capital Markets, Scotiabank, Canaccord Genuity Corp., Raymond James Ltd., Richardson Wealth Limited, Desjardins Securities Inc., Echelon Wealth Partners Inc., Hampton Securities Ltd., iA Private Wealth Inc., and Manulife Securities Inc.
