PIMCO Tactical Income Fund Completes $368.8 Million Initial Public Offering
TORONTO, (October 20, 2020) – PIMCO Canada Corp. (the “Manager”) is pleased to announce the closing of the initial public offering of PIMCO Tactical Income Fund (the “Fund”). Pursuant to the offering, the Fund issued an aggregate 13,135,866 Class A Units and an aggregate 23,744,039 Class F Units (together with the Class A Units, the “Units”) for gross proceeds of $368,799,050.
The Units were issued at a price of $10 per Class A Unit and $9.84 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 $0.16 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 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).Footnote1The 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.
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.
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