Pimco California Municipal Income Fund II may postpone next monthly common share dividends

By Jennifer Chiou

New York, Nov. 26 - Pimco California Municipal Income Fund II announced that it may be required to delay the payment of the declared November dividend and the declaration of the next scheduled dividend on the fund's common shares.

According to a news release, the fund is not permitted to pay or declare common share dividends unless its auction-rate preferred shares have asset coverage of 200% after payment or declaration of the common share dividend, and continued severe market dislocations have caused the value of the fund's portfolio securities to decline.

As a result, the fund's asset coverage ratio has fallen below the 200% level, and if the 200% level is not met on Dec. 1, the fund would have to postpone the payment of the previously declared November dividend and the declaration of the December dividend until the situation is corrected.

Allianz Global Investors Fund Management LLC is the fund's investment manager.

The fund's daily New York Stock Exchange closing prices and net asset values per share are available by calling the fund's shareholder servicing agent (800 331-1710).

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