Terms

Series

5.50% Series A Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5.5%

Rate Type

Fixed

Annual Dividend

$1.38

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 11, 2023

First Call Price

$25.00

Redemption Notice Period

15 days

Capital Stack Ranking

Junior To: All Creditors And Debt Obligations Of The Fund; Pari Passu With: Auction Rate Preferred Shares (Arps), Any Future Series Of Preferred Shares Issued By The Fund; Senior To: Common Shares Of Beneficial Interest

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Qualifies for QDI

No

Shares Offered

4,360,000

Prospectus Summary

AllianzGI Convertible & Income Fund II is a diversified closed-end management investment company offering 4,360,000 shares of its 5.50% Series A Cumulative Preferred Shares at a $25.00 liquidation preference per share, listed on the NYSE under 'NCZ PR A'. The shares pay a fixed 5.50% per annum ($1.375/share annually, or approximately $0.34375 per quarter), and are callable at par beginning September 11, 2023. These shares are cumulative, meaning any missed dividends accrue and must be paid in full before the Fund can resume 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 (ARPS) with respect to dividends and liquidation distributions. As a closed-end fund, all shares are junior to any creditors and indebtedness of the Fund. There is no bank subsidiary subordination issue. The Fund carries a notable regulatory call: prior to the first call date of September 11, 2023, the shares can be redeemed at any time if the Board determines it is necessary to maintain the Fund's RIC tax status, and mandatory redemption can be triggered by failure to maintain 1940 Act 200% asset coverage or Fitch rating agency coverage thresholds after applicable cure periods. At the $25.00 offering price, the shares yield exactly 5.50%, paid quarterly on March 31, June 30, September 30, and December 31, to holders of record as of the fifth preceding business day. Dividends generally constitute ordinary income for federal tax purposes, not qualifying dividend income eligible for the 15%/20% preferential rate, though a portion allocated as capital gain dividends or dividends received deduction-eligible income is possible but uncertain. The dividend stopper prevents any distributions to common shareholders if cumulative preferred dividends are not current or if the Fund fails required asset coverage tests, providing meaningful structural protection for preferred holders.

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 are not fully paid, the Fund is blocked from paying dividends or repurchasing Common Shares (or any junior shares), until all accumulated preferred dividends are current and asset coverage requirements are met.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 81 (Very Strong)