New Financing Arrangement for 3 closed-end funds to partially redeem auction preferred shares
April 30, 2008BOSTON – Evergreen Investments today announced Evergreen Utilities and High Income Fund (AMEX: ERH), Evergreen Income Advantage Fund (AMEX: EAD), and Evergreen Multi-Sector Income Fund (AMEX: ERC), 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 Redeemed | Total Amount Redeemed | Anticipated Redemption Date |
| M28 | 30034Q208 | 3200 | $80,000,000 | May 20, 2008 |
Evergreen Multi-Sector Income Fund (ERC):
| Series | CUSIP | Total Shares Redeemed | Total Amount Redeemed | Anticipated 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 Redeemed | Total Amount Redeemed | Anticipated 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 Scheduled for 4 P.M EDT on May 1, 2008
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 #: 1-800-399-1934
- International Dial-In #: 1-706-679-3370
- Conference ID #: 45766320
A replay of the Webinar and a transcript of the call will be available on www.EvergreenInvestments.com.
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For more information about Evergreen’s closed-end funds, contact your financial advisor, visit EvergreenInvestments.com, or call 1-800-343-2898.
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 (NYSE:WB) 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 more than 300 investment professionals, Evergreen Investments strives to meet client investment objectives through disciplined, team-based asset management. Evergreen Investments manages more than $258 billion in assets (as of March 31, 2008).
