BOSTON, April 30 /PRNewswire-FirstCall/ -- Evergreen Investments today announced Evergreen Utilities and High Income Fund , Evergreen Income Advantage Fund , and Evergreen Multi-Sector Income Fund , three of its closed end funds, have secured debt financing from a multi-seller commercial paper conduit administered by a major financial institution that will be used by the Funds to redeem some or all of the Funds' outstanding auction preferred shares (APS). As detailed below, ERH intends to redeem all of its outstanding APS; EAD intends to redeem approximately 60%; and ERC intends to redeem approximately 80%.
The tables below list the total number of shares, par amounts and anticipated redemption dates for each of the three Funds.
Evergreen Utilities and High Income Fund (ERH): Series CUSIP Total Shares Total Amount Anticipated Redeemed Redeemed Redemption Date M28 30034Q208 3200 $80,000,000 May 20, 2008 Evergreen Multi-Sector Income Fund (ERC): Series CUSIP Total Shares Total Amount Anticipated Redeemed Redeemed Redemption Date M7 30024Y401 2560 $64,000,000 May 27, 2008 W7 30024Y500 2560 $64,000,000 May 29, 2008 F7 30024Y609 2560 $64,000,000 June 2, 2008 T28 30024Y203 2560 $64,000,000 June 18, 2008 Th28 30024Y302 2560 $64,000,000 June 6, 2008 Evergreen Income Advantage Fund (EAD): Series CUSIP Total Shares Total Amount Anticipated Redeemed Redeemed Redemption Date T7 30023Y402 1920 $48,000,000 May 28, 2008 W7 30023Y501 1920 $48,000,000 May 29, 2008 Th7 30023Y600 1920 $48,000,000 May 30, 2008 F7 30023Y709 1920 $48,000,000 June 2, 2008 M28 30023Y204 2040 $51,000,000 June 10, 2008 W28 30023Y303 2040 $51,000,000 May 29, 2008
Funds redeeming less than all of their outstanding APS will redeem shares on a pro rata basis by series. Depository Trust Company (DTC), the Funds' holder of record, determines how a partial series redemption will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn determines how redeemed shares are allocated among its underlying beneficial owners. The procedures used by different broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
"We are pleased to announce a solution that provides needed liquidity to preferred shareholders while still preserving the ability of the common shareholders to invest through leveraged investment strategies," said Dennis H. Ferro, President and Chief Executive Officer, Evergreen Investments. "We remain steadfast in our goal of protecting investor's long-term interests through all cycles of the market."
Webinar
A Webinar to discuss the announced redemptions will take place at 4:00 p.m. EDT on Thursday, May 1, 2008.
To access the session, please click on the following link five minutes before the session begins:
https://www.livemeeting.com/cc/wachovia/join?id=7C57ZK&role=attend Meeting ID: 7C57ZK For Audio, please call: US/Canada Dial-in #: (800) 399-1934 International Dial-In #: (706) 679-3370 Conference ID #: 45766320
A replay of the Webinar and a transcript of the call will be available by visiting http://www.evergreeninvestments.com/.
First Time Live Meeting Users:
If you have never participated in a Live Meeting session before, please test your browser for the appropriate configuration prior to the start of the meeting. Point your browser to the test link at:
http://esd.placeware.com/lm2005test/
Enter your name and click the green arrow. Live Meeting will download when you select "Open", please let the application run for a few minutes until you see the cycling slides confirming your access to Live Meeting. (Please note: you may not need to select "Open" as Live Meeting may already be installed.)
If the application does not launch or you get an error message, please contact Intercall at 877-300-8431 and press 3.
For more information about Evergreen's closed-end funds, contact your financial advisor, visit EvergreenInvestments.com, or call 800.343.2898.
These closed-end funds are no longer offering their securities, although their common shares are available through broker/dealers on the secondary market. Unlike an open-end mutual fund, a closed-end fund (CEF) offers a fixed number of shares for sale. After the initial public offering, shares are bought and sold in the secondary marketplace and the market price of the shares is determined by supply and demand, not by net asset value, often at a lower price than the NAV. A closed-end fund is not required to buy its shares back from investors upon request.
Various statements contained in this press release are "forward looking statements." All forward-looking statements involve risks and uncertainties. In particular, any statement contained in this press release regarding expectations or assumptions are subject to risks, uncertainties and contingencies, including market risks, which are beyond our control, and which may cause actual results or achievements to differ materially and perhaps substantially from anticipated results or achievements. Evergreen and the Evergreen Funds do not make any representations or warranties (express or implied) about the accuracy of such forward looking statements.
About Evergreen Investments
Evergreen Investments is the brand name under which Wachovia Corporation conducts its investment management business. Wachovia Global Asset Management is the brand name under which Evergreen Investments conducts sales and distribution business outside of the United States. Combined, the groups serve more than four million individual and institutional investors through a broad range of investment products. Led by 400 investment professionals, Evergreen Investments strives to meet client investment objectives through disciplined, team-based asset management. Evergreen Investments manages approximately $258 billion in assets (as of March 31, 2008). Please visit EvergreenInvestments.com for more information about Evergreen Investments.
