Morgan Stanley Municipal Closed-End Funds Announce At Par Redemptions of Preferred Shares

• Press Release
• Source: Morgan Stanley
• On 4:30 pm EDT, Friday October 2, 2009

NEW YORK--(BUSINESS WIRE)--The Morgan Stanley Municipal Closed-End Funds (the “Funds”) listed below hereby announce the dates for the partial redemptions of their respective auction rate preferred shares (ARPS). The announced partial redemptions total $152.05 million and represent approximately 20.66 percent of the total remaining ARPS issued by the Funds, bringing the total announced redemptions to 39.8 percent of the total originally issued ARPS.

Related Quotes

Symbol	Price	Change
IIC	12.53	+0.08

{"s" : "iic,iim,imc,imt,iqc,iqi,iqm,iqn,iqt,pia","k" : "c10,l10,p20,t10","o" : "","j" : ""}

This redemption announcement follows previous announcements in which Morgan Stanley provided information regarding the refinancing of a portion of the Funds’ ARPS with the use of tender option bonds (TOBs).

The amount of ARPS being redeemed at this time varies by Fund and ranges between 10 percent and 31 percent of the ARPS outstanding for each Fund based on a number of factors, including the interests of the common shareholders, the availability of high quality municipal bonds at certain yield levels to be transferred to the trust structure and the ability to secure liquidity providers for the put feature.

With respect to this partial redemption, The Depository Trust Company (DTC), the securities’ holder of record, will determine how the partial series redemptions will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn will determine how redeemed shares are to be allocated among its underlying beneficial owners. The procedures used by various broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.

Redemption Schedule

Morgan Stanley Investment Management, together with its investment advisory affiliates, has nearly 1,000 investment professionals around the world and approximately $361 billion in assets under management or supervision as of June 30, 2009. By leveraging its global ‘community of boutiques’ structure and the strength of Morgan Stanley, MSIM strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 37 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

Morgan Stanley
888-421-4015