NEW DELHI & SYDNEY & SINGAPORE--(BUSINESS WIRE)--The auction rate preferred shares (ARPS) issued by BlackRock Credit Allocation Income Trust II, Inc. (NYSE:PSY) and BlackRock Credit Allocation Income Trust IV (NYSE:BTZ), two closed-end funds managed by BlackRock Investments, LLC, are paid in full following the at-par redemption of all outstanding shares. Share class information and the dates of repayment of the ARPS are as follows:
PSY, $169 million aggregate principal amount of ARPS:
--Series M-7, 861 shares, rated 'AAA', redeemed on Jan. 4, 2011;
--Series T-7, 861 shares, rated 'AAA', redeemed on Jan. 5, 2011;
--Series W-7, 861 shares, rated 'AAA', redeemed on Jan. 6, 2011;
--Series TH-7, 861 shares, rated 'AAA', redeemed on Jan. 7, 2011;
--Series F-7, 861 shares, rated 'AAA', redeemed on Jan. 10, 2011;
--Series W-28, 1228 shares, rated 'AAA', redeemed on Jan. 13, 2011;
--Series TH-28, 1228 shares, rated 'AAA', redeemed on Jan. 28, 2011.
BTZ, $231 million aggregate principal amount ARPS:
--Series T-7, 2,310 shares, rated 'AAA', redeemed on Jan. 5, 2011;
--Series W-7, 2,310 shares, rated 'AAA', redeemed on Jan. 6, 2011;
--Series R-7, 2,310 shares, rated 'AAA', redeemed on Jan. 7, 2011;
--Series F-7, 2,310 shares, rated 'AAA', redeemed on Jan. 10, 2011.
The redemption of outstanding ARPS took place as a result of the funds refinancing leverage.
BlackRock Investments, LLC is the funds' investment adviser, responsible for the funds' overall investment strategy and implementation. BlackRock Investments, LLC is a wholly owned subsidiary of BlackRock, which had approximately $3.45 trillion of assets under management as of Sept. 30, 2010.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Closed-End Fund Debt and Preferred Stock Rating Criteria', dated Aug. 17, 2009.
--'Fitch Launches 'CEF Updates' for Closed-End Funds', dated Nov. 8, 2010;
--'Closed-End Funds: Evolving Use of Leverage and Derivatives' dated Sept. 27, 2010;
--'Closed-End Funds: Redemptions Provide Some Liquidity to Illiquid ARPS Market', dated Aug. 31, 2010;
--'Closed-End Funds: Fitch Clarifies Criteria for Make-Whole Amounts and Other Prepayment Obligations', dated March 18, 2010.
Applicable Criteria and Related Research:
Closed-End Funds: Redemptions Provide Some Liquidity to Illiquid ARPS Market
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=552106
Closed-End Funds: Fitch Clarifies Criteria for Make-Whole Amounts and Other Prepayment Obligations
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=504986
Closed-End Fund Debt and Preferred Stock Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=462492
Closed-End Funds: Evolving Use of Leverage and Derivatives
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=559525
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