On April 24, 2014, Brigade Capital Management, LLC announced that it has had discussions with representatives of PIMCO Income Strategy Fund and the Company's sub-advisor concerning financing alternatives to replace the shares, in Brigade Capital's view are attractive to the Company. In addition, Brigade Capital stated that during the discussions, it has reviewed types of financings available to the Company at rates that are less than the dividend rates for the shares. Brigade Capital also stated that it has indicated the Company that it could be in the best interests of both the holders of the shares as well as the Company and its common shareholders for the Company to use the financing alternatives to make a tender offer for all outstanding shares.

Furthermore, Brigade Capital stated that it has commented on the material terms of a potential tender, including the tender price.