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AllianzGI Convertible & Income Message Board

  • bill.bleeker bill.bleeker Dec 10, 2012 10:42 AM Flag

    Opening up of this fund!!!

    Significant news. AGIC just posted details that they will issue new shares of this fund. Face value of this is a wash, but it is actually very significant news. It will generate more buzz of this high yielding fund, and make the fund larger. This could play many ways, but overall a very positive change. And trading now with a historically small percentage over NAV.

    Sentiment: Buy

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    • There's an SEC form 497 filing on 12/5/2012 detailing an apparent secondary offering. I found it by going to CEFConnect and clicking on the SEC Filings link.

      Excerpt appears below. It's a little puzzling that they didn't file an 8-K or have any other notice of this action.

      AGIC Convertible & Income Fund (the “Fund”) has entered into a sales agreement (the “Sales Agreement”) with JonesTrading Institutional Services LLC (“JonesTrading”) relating to its common shares of beneficial interest (“Common Shares”) offered by this Prospectus Supplement and the accompanying Prospectus. In accordance with the terms of the Sales Agreement, the Fund may offer and sell up to 10,700,000 of its Common Shares, par value $0.00001 per share, from time to time through JonesTrading as its agent for the offer and sales of the Common Shares, subject to an aggregate cap of $135,000,000. Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund may not sell any Common Shares at a price below the current net asset value of such common shares, exclusive of any distributing commission or discount. The Fund’s investment objective is to provide total return through a combination of capital appreciation and high current income.

    • Bill;

      There is still no mention of NCV selling additional shares in the news or on the Alliance website. Do you still stand behind your post or do you have an information source you can provide?

      Sentiment: Hold

    • How is this positive? Will these funds reduce my current shares? Will it increase the dividend? Where did you get this information....I saw that the CUSIP number is different with a name change?? Please elaborate?

    • jdfunnell Dec 10, 2012 8:31 PM Flag

      You must have a better source than I; can't sind it even over at the AGI site.

      Usually, when a CEF issues new shares, it does it via a Rights Offering, basically forcing current holders to buy more to prevent dilution, so what you describe appears unusual.

      This would water down the leverage provided by the ARPS, because lord knows there are not going to be any more of those.

      So I'm not only having a tough time accessing the data, I'm having a tough time understanding how or why they would proceed............Dave

    • How is dilution a good thing?

      Sentiment: Buy

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