PIMCO Multi-Sector Income Fund Completes Initial Public Offering and Private Placement for Aggregate Gross Proceeds of $245 Million
TORONTO, (March 10, 2022) – PIMCO Canada Corp. (the “Manager”) is pleased to announce the closing of the initial public offering of PIMCO Multi-Sector Income Fund (the “Fund”). Pursuant to the offering, the Fund issued an aggregate 7,589,385 Class A Units and an aggregate 13,910,615 Class F Units (together with the Class A Units, the “IPO Units”) for gross proceeds of $215 million.
The Units were issued at a price of $10 per Class A Unit and $9.83 per Class F Unit. However, upon closing of the initial public offering of the Fund, the Manager made a voluntary cash contribution to the Fund of $0.17 per Class F Unit. As a result, the net asset value per Class A Unit and the net asset value per Class F Unit immediately following the closing of the initial public offering were $10.00 and $10.00, respectively.
The Class F Units were then immediately 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 PIX.UN.
A private placement of 3,000,000 Class P Units of the Fund (together with the IPO Units, the “Units”) was also completed today for gross proceeds of $30 million. 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.
The Fund has granted the Agents an over-allotment option to acquire additional Class A Units at $10.00 per Class A Unit at any time during the next 30 days.
