Evergreen funds to redeem $276 million in auction market preferreds

By Devika Patel

Knoxville, Tenn., April 26 - Evergreen Investment Management Co., LLC announced that two of its closed-end funds will redeem in full all of their outstanding auction market preferred shares. The total amount being redeemed is $276 million.

Evergreen Income Advantage Fund (NYSE Amex: EAD) will redeem $196 million in preferreds on redemption dates beginning on May 13 and ending June 8.

Evergreen Multi-Sector Income Fund (NYSE Amex: ERC) will redeem $80 million in preferreds on redemption dates beginning on May 13 and ending June 4.

The funds previously secured debt financing from a multi-seller commercial paper conduit administered by a major financial institution to redeem approximately 60% of Evergreen Income's outstanding auction market preferreds and approximately 80% of Evergreen Multi-Sector's auction market preferreds as well as all of Evergreen Utilities and High Income Fund's (NYSE Amex: ERH) outstanding auction preferreds.

After completion of these redemptions, none of the Evergreen closed-end funds will have any outstanding auction market preferreds or auction preferreds.

Boston-based Evergreen is an asset management firm and a subsidiary of Wells Fargo & Co.

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