On August 21, 2014, Brigade Capital Management, LP announced that it has had discussions with the sub-advisor and investment manager of PIMCO Income Strategy Fund concerning the Brigade Capitals proposal that the Company pursue leverage alternatives for the outstanding shares and use the resulting funds to make an issuer tender offer for the shares. In addition, Brigade Capital stated that these discussions have recommenced and, to facilitate these discussions, Brigade Capital has entered into a confidentiality agreement with the sub-advisor and investment manager of the Company. Further, Brigade Capital stated that however, there is no guarantee that any agreement will be reached with respect to an issuer tender offer for the shares.