PKO - PDI: PIMCO Surprises Investors With Secondary - What To Do

• PDI placed more than 3 million shares at a 24.69 price raising over $75M of fresh capital and increasing the size of the fund by 5% before any leverage is applied.
• The fund's managers and PIMCO clearly see an opportunity here to add value to the shares and help recover NAV lost in March.
• We think that opportunity is clearly in the commercial mortgage backed securities market buying up cheap retail and office space assets at distressed levels.
• The shares have been placed and cash raised. They will begin to deploy that in the next few weeks.
• Investors hate secondaries, but in cases like this, the secondary should be accretive to the NAV and be long-term beneficial to shareholders, creating a buying opportunity.

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