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MZF Announces Expiration of Tender Offer Program

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  Published in Business and Finance on Tuesday, June 1st 2010 at 19:20 GMT by Market Wire
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LISLE, Ill.--([ BUSINESS WIRE ])--[ MBIA Capital/Claymore Managed Duration Investment Grade Municipal Fund ] (NYSE: [ MZF ]) (the aFunda) announced today that the Funda™s measurement period for the first of its three potential conditional tender offers has expired, effective May 31, 2010.

Upon the occurrence of certain events and certain other terms and conditions, the Funda™s Board of Trustees agreed to conduct up to three conditional tender offers if, during approximately three calendar months prior to such conditional tender offer (aConditional Tender Offer Test Perioda), the Funda™s Common Shares traded on the New York Stock Exchange at an average daily discount to net asset value (adiscounta) of more than 5% during the applicable period. If the Funda™s average discount for each trading day in any of the applicable Conditional Tender Offer Test Period was less than 5%, the Fund would not conduct any subsequent conditional tender offers. Each conditional tender offer was also subject to certain additional terms and conditions including, for example, that such conditional tender offer would not constitute a breach of Board of Trusteea™s fiduciary duty owed to the Fund or its shareholders.

During the three calendar months ended May 31, 2010, the Funda™s Common Shares traded on the New York Stock Exchange at an average discount of 2.37%. As the Funda™s average daily discount during this Conditional Tender Offer Test Period was less than 5%, the Funda™s conditional tender offer program has expired and the potential conditional tender offers will not occur.

Based upon the Funda™s current monthly distribution rate of $0.0825 per common share and the Funda™s closing market price of $14.20 on May 28, 2010, the Funda™s annualized distribution rate is 6.97%. The Funda™s current taxable equivalent distribution rate, as of May 28, 2010, is 10.73%. The taxable equivalent distribution rate is calculated by taking the current distribution rate and dividing it by one minus the highest federal marginal tax bracket, which is currently at 35%.

As noted below, the Funda™s shareholders have realized a net asset value and market price total return that has outperformed the Barclays Capital Municipal Bond Index¹ (the aIndexa) over the 1-, 3- and 5-year periods. Past performance is not a guarantee of future results.

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. ¹The Barclays Capital 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: Moodya™s, S&P, Fitch.

Cutwater Asset Management Corp. (aCutwatera) serves as the Funda™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 $15.9 billion in assets as of March 31, 2010. 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.

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.

Member FINRA/SIPC (06/10)

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE