MZF ANNOUNCES FINAL RESULTS OF TENDER OFFER
Lisle, IL - March 19, 2010 - (NYSE: MZF) MBIA Capital/Claymore Managed Duration
Investment Grade Municipal Fund (the "Fund") announced today the final results
of its tender offer (the "Offer") for up to 1,190,339 of its issued and
outstanding common shares ("Common Shares") or approximately 15% of the Fund's
Common Shares at a price equal to 98% of the Fund's net asset value ("NAV") per
share. The Offer expired on Friday, March 12, 2010, and 2,031,325 Common Shares,
or approximately 25.60% of the Fund's Common Shares, were tendered through the
stated expiration date.
Pursuant to the Offer, the Fund has accepted 1,190,339 properly tendered shares,
representing approximately 15% of the Fund's Common Shares outstanding, at a
price per Common Share of approximately $13.7298 (the "Repurchase Price"). The
total value of assets of the Fund to be distributed in payment for such properly
tendered Common Shares accepted in the Offer based on the Repurchase Price is
approximately $16.3 million.
Because more than 1,190,339 Common Shares were tendered in the Offer, the tender
offer was oversubscribed. Therefore, in accordance with the terms of the Offer,
the Fund repurchased Common Shares on a pro-rata basis, disregarding fractions,
from all tendering shareholders, with the exception of Common Shares tendered by
shareholders who owned not more than 99 Common Shares and who properly tendered
all such Common Shares, which the Fund purchased in full in accordance with the
terms of the Offer. Accordingly, on a pro rata basis, except as noted above,
approximately 58.60% of the Common Shares properly tendered by each shareholder
who tendered their Common Shares have been accepted for payment.
The Fund's current monthly distribution of $0.0825 per common share represented
an annualized distribution rate of 7.26% based upon the closing market price of
$13.63 on March 18, 2010. The Fund's taxable equivalent distribution rate based
on this closing market price was 11.17%. The taxable equivalent distribution
rate is calculated by dividing the current distribution rate by one minus the
highest federal marginal income tax bracket, which is currently 35%.
As noted below, the Fund's shareholders have realized a market price total
return that has outperformed the Barclay's Municipal Bond Index(1) (the "Index")
over the 1-, 3- and 5-year periods and a net asset value total return that has
outperformed the Index over the 1-year period. Past performance is not a
guarantee of future results.
- --------------------------------------------- ---------------------- ------------------------ -----------------------
AVERAGE ANNUAL RETURN (as of 2/28/10) 1-YEAR 3-YEAR 5-YEAR
- --------------------------------------------- ---------------------- ------------------------ -----------------------
MZF Market Price 50.52% 6.86% 5.91%
- --------------------------------------------- ---------------------- ------------------------ -----------------------
MZF NAV 28.64% 3.68% 4.28%
- --------------------------------------------- ---------------------- ------------------------ -----------------------
Barclays Municipal Bond Index(1) 9.98% 4.54% 4.44%
- --------------------------------------------- ---------------------- ------------------------ -----------------------
THE AFOREMENTIONED RETURNS ASSUME REINVESTMENT OF DIVIDENDS. PERFORMANCE DATA
QUOTED REPRESENTS PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS, AND
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE FIGURES SHOWN. THE
INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE WITH
CHANGES IN MARKET CONDITIONS AND OTHER FACTORS SO THAT AN INVESTOR'S SHARES,
WHEN SOLD, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. ALL RETURNS OVER
ONE YEAR ARE ANNUALIZED.
Upon the occurrence of certain events as set forth below and certain other terms
and conditions, the Fund's Board of Trustees has agreed to conduct up to three
additional tender offers as soon as reasonably practicable after June 1, 2010,
September 1, 2010 and December 1, 2010 (the "Conditional Tender Offers").The
Fund will commence each Conditional Tender Offer for up to 5% of its then
outstanding Common Shares at a price equal to at least 98% of the NAV of its
Common Shares as determined as of the close of regular trading session of the
New York Stock Exchange on the date such Conditional Tender Offer expires, if
during approximately three calendar months prior to such Conditional Tender
Offer (each a "Conditional Tender Offer Test Period"), the Fund's Common Shares
have traded on the New York Stock Exchange at an average daily discount from NAV
of more than 5% during the applicable Conditional Tender Offer Test Period. If
the average of the Fund's daily discount of market price to net asset value for
each trading day in the applicable Conditional Tender Offer Test Period is less
than 5% during such period, the Fund will not conduct any subsequent Conditional
Tender Offers. Each Conditional Tender Offer is also subject to certain
additional terms and conditions including, for example, that such Conditional
Tender Offer would not constitute a breach of Board of Trustee's fiduciary duty
owed to the Fund or its shareholders.
Cutwater Asset Management Corp. ("Cutwater") serves as the Fund's investment
adviser. Based in Armonk, New York, Cutwater, formerly known as MBIA Capital
Asset Management Corporation, was created in 1991 to provide fixed-income
investment products and services to institutional and retail clients. The firm
specializes in the management of fixed-income securities and provides expertise
in investment-grade municipal bond investing. Cutwater is a wholly-owned
subsidiary of MBIA, Inc., which is listed on the New York Stock Exchange and is
a component stock of the S&P 500 Index. Additional information can be found at
www.cutwater.com.
Claymore Securities, Inc. offers strategic investment solutions for financial
advisors and their valued clients. As an innovator in exchange-traded funds
(ETFs), unit investment trusts (UITs) and closed-end funds (CEFs), Claymore
often leads its peers with creative investment strategy solutions. In total,
Claymore entities provide supervision, management, or servicing on approximately
$15.2 billion in assets as of December 31, 2009. Claymore Securities, Inc. is a
wholly-owned subsidiary of Guggenheim Partners, LLC, a global, diversified
financial services firm with more than $100 billion in assets under supervision.
Guggenheim, through its affiliates, provides investment management, investment
advisory, insurance, investment banking, and capital markets services. The firm
is headquartered in Chicago and New York with a global network of offices
throughout the United States, Europe, and Asia.
(1)The Barclays Municipal Bond Index is a rules-based, market-value-weighted
index engineered for the long-term tax-exempt bond market. To be included in the
index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least
two of the following ratings agencies: Moody's, S&P and Fitch. This Index is
unmanaged and it is not possible to invest directly in any index.
This information does not represent an offer to sell securities of the Fund and
it is not soliciting an offer to buy securities of the Fund. There can be no
assurance that the Fund will achieve its
investment objectives. The net asset value of the Fund will fluctuate with the
value of the underlying securities. It is important to note that closed-end
funds trade on their market value, not net asset value, and closed-end funds
often trade at a discount to their net asset value. Past performance is not
indicative of future performance. An investment in the Fund is subject to
certain risks and other considerations. Such risks and considerations include,
but are not limited to: Liquidity and Market Price of Shares Risk; Market Risk
and Selection Risk; Municipal Bond Market Risk; Interest Rate and Credit Risk;
Call and Redemption Risk; Private Activity Bonds Risk; Risks of Tobacco-Related
Municipal Bonds; Leverage Risk; Inflation Risk; Auction-Market Preferred Shares
Risk; Portfolio Strategies Risk; Derivatives Risk; Affiliated Insurers Risk;
Anti-Takeover Provisions; and Market Disruption.
INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES AND POLICIES, RISK
CONSIDERATIONS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE THEY INVEST.
FOR THIS AND MORE INFORMATION, PLEASE CONTACT A SECURITIES REPRESENTATIVE OR
CLAYMORE SECURITIES, INC., 2455 CORPORATE WEST DRIVE, LISLE, ILLINOIS 60532,
800-345-7999.
PRESS AND ANALYST INQUIRIES:
William T. Korver
Claymore Securities, Inc.
cefs@claymore.com
630-505-3700
Member FINRA/SIPC (03/10)
NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE