Terms

Series

5.625% Series A Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5.625%

Rate Type

Fixed

Annual Dividend

$1.41

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 20, 2023

First Call Price

$25.00

Redemption Notice Period

15 days

Capital Stack Ranking

Junior To: All Creditors Of The Fund; Pari Passu With: Arps (Auction Rate Preferred Shares), Any Future Series Of Preferred Shares; Senior To: Common Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

Yes

Shares Offered

4,000,000

Prospectus Summary

AllianzGI Convertible & Income Fund is a diversified closed-end management investment company offering 4,000,000 shares of its 5.625% Series A Cumulative Preferred Shares at a liquidation preference of $25.00 per share, listed on the NYSE under 'NCV PR A'. The shares pay a fixed annual dividend of $1.40625 per share ($0.3516 quarterly) and are not callable before September 20, 2023, after which the Fund may redeem at par plus accrued dividends. These shares are cumulative, meaning any unpaid dividends accrue and must be paid in full before the Fund can make distributions to common shareholders. The Series A Preferred Shares rank senior to the Fund's common shares and on parity with the existing Auction Rate Preferred Shares and any future preferred series. They are junior to all creditors of the Fund. As a closed-end fund (not a bank holding company), there is no structural subordination concern, but the Fund does carry leverage via a credit facility and ARPS. The Fund may redeem the Series A Preferred Shares at any time prior to the call date if the Board determines it is necessary to maintain RIC tax status, and is required to mandatorily redeem shares if the Fund fails to maintain 200% asset coverage under the 1940 Act or Fitch's rating agency coverage tests—failure that is not cured within prescribed periods triggers forced redemption at liquidation preference plus accrued dividends. At the $25.00 offering price, the Series A Preferred Shares yield 5.625% annually. Dividends are paid quarterly on March 31, June 30, September 30, and December 31 to holders of record as of the fifth preceding business day. Income distributions are generally taxable as ordinary income (not qualifying for the preferential 15%/20% qualified dividend rate for individual investors); however, the Fund may allocate a portion of dividends qualifying for the dividends-received deduction to corporate holders, to the extent applicable. If cumulative dividends on any parity preferred shares are not fully current, the Fund is blocked from paying dividends on common shares or repurchasing common shares until all arrears are satisfied.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If cumulative dividends on the Series A Preferred Shares or other parity preferred shares are not fully paid, the Fund is blocked from paying dividends or repurchasing its common shares.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 73 (Strong)