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Claymore Dividend & Income Fund (NYSE: DCS) recently made known a partial refinancing and at-par redemption of its outstanding Auction Market Preferred Shares (AMPS).
The Fund intends to redeem $35 million of its outstanding AMPS. The redemption price will be equal to the liquidation preference per share, $25,000 plus accumulated but unpaid dividends as of the applicable redemption date. Following this redemption, the Fund will have $30 million of AMPS outstanding.
The redemption of the AMPS will be financed in part with the proceeds of a $30 million credit facility to be entered into by the Fund. Subsequent to the redemption of AMPS and funding of the credit facility, the aggregate amount of financial leverage employed by the Fund will be $60 million and the Fund will have successfully redeemed or refinanced approximately 93% of its AMPS. While management of the Fund anticipates finalizing definitive agreements with respect to the credit facility in advance of the scheduled redemption dates, there can be no assurance that the Fund will enter into a definitive credit facility or that the AMPS will be redeemed.
Claymore Advisors, LLC, an affiliate of Claymore Securities, Inc., serves as the Fund's Investment Adviser. Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management, servicing and/or distribution on approximately $12.9 billion in assets, as of June 30, 2009.
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