Cohen & Steers Update on Auction Market Preferreds
April 07 2008 - 5:47PM
PR Newswire (US)
NEW YORK, April 7, 2008 /PRNewswire-FirstCall/ -- Cohen &
Steers Capital Management, Inc. responded today to news that some
broker/dealers have recently decided to reduce the value of the
auction market preferred securities (AMPS) held in their clients'
accounts. This action, the broker/dealers have said, reflects the
current illiquidity in the AMPS market. As we have previously
announced, the credit quality of the AMPS issued by our closed-end
funds is unchanged; they continue to be rated Aaa by Moody's
Investor Services and AAA by Standard & Poor's. To maintain
these ratings, which are not supported by any credit enhancements,
our funds must meet the 2:1 asset coverage tests required by the
Investment Company Act of 1940, as well as those of the ratings
agencies. There can be no assurance, however, that continued
illiquidity or changes in market conditions will not adversely
affect the funds in the future. Since the AMPS market stalled
earlier this year, senior personnel of Cohen & Steers have been
investigating alternative methods of financing for our closed-end
funds that have issued AMPS, including lines of credit, commercial
paper and new forms of preferred stock that could replace the
existing AMPS. We are also working with the Investment Company
Institute and the SEC, among others, to evaluate ways to provide
liquidity to our funds' AMPS holders. Cohen & Steers'
management views this issue as a top priority and is focusing its
resources on developing a viable long-term solution. We are working
to resolve this as quickly as possible, and we will keep our funds'
shareholders fully informed of our progress. For more information
and periodic updates, please visit http://www.cohenandsteers.com/.
About Cohen & Steers Cohen & Steers Capital Management,
Inc. is a manager of high-income equity portfolios specializing in
U.S. REITs, international real estate securities, preferred
securities, utilities and listed infrastructure securities, and
large cap value stocks. Headquartered in New York City, with
offices in Brussels, Hong Kong, London and Seattle, the company
serves individual and institutional investors through open-end
mutual funds, closed-end funds and institutional separate accounts.
Forward-Looking Statements This press release and other statements
that Cohen & Steers may make may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
which reflect the company's current views with respect to, among
other things, its operations and financial performance. You can
identify these forward- looking statements by the use of words such
as "outlook," "believes," "expects," "potential," "continues,"
"may," "will," "should," "seeks," "approximately," "predicts,"
"intends," "plans," "estimates," "anticipates" or the negative
versions of these words or other comparable words. Such forward-
looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could
cause actual outcomes or results to differ materially from those
indicated in these statements. The company undertakes no obligation
to publicly update or review any forward-looking statement, whether
as a result of new information, future developments or otherwise.
The following factors, among others, could cause actual results to
differ materially from forward-looking statements: (1) the ability
of Cohen & Steers and the Cohen & Steers closed-end funds
that have issued AMPS to develop and finalize fund-by-fund specific
proposals to restructure the leverage of such funds; (2) the need
for such Cohen & Steers funds to obtain formal fund-by- fund
approval from the funds' Board of Directors for certain types of
specific proposals as they are developed and finalized; (3) the
ability of such Cohen & Steers funds to negotiate and obtain
from third parties the necessary debt facilities and other
commitments and agreements necessary for the Cohen & Steers
funds to refinance all or a portion of their leverage on terms and
conditions acceptable to the funds and in a timely manner; (4) the
ability of such Cohen & Steers funds to develop new forms of
preferred stock that could replace existing AMPS on terms
acceptable to the Cohen & Steers funds and in a timely manner;
(5) the effects of changes in market and economic conditions; (6)
other legal and regulatory developments; and (7) other additional
risks and uncertainties. DATASOURCE: Cohen & Steers Capital
Management, Inc. CONTACT: John McCombe, Cohen & Steers Capital
Management Inc., +1-212-832-3232 Web site:
http://www.cohenandsteers.com/
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