Avenue Income Credit Strategies Fund Announces New Portfolio Manager, Changes To Non-Fundamental Investment Policies And New Treasurer And Chief Financial Officer

NEW YORK, Sept. 13, 2012 /PRNewswire/ -- Avenue Income Credit Strategies Fund (NYSE: ACP) (the "Fund"), a closed-end management investment company, today announced that its Board of Trustees (the "Board") approved the appointment of Mr. Jeffrey J. Gary as the new Portfolio Manager of the Fund, effective on or about November 23, 2012.  Mr. Gary, a Senior Portfolio Manager of Avenue Capital Management II, L.P., the Fund's investment adviser (the "Adviser"), will be primarily responsible for the day-to-day management of the Fund's assets.  Mr. Gary joined the Adviser in 2011 and has more than 20 years of investment experience in high yield, bank loan and distressed investment strategies, including the last fifteen years as a portfolio manager.  He is also the Portfolio Manager of Avenue Credit Strategies Fund, an open-end mutual fund managed by the Adviser and a series of Avenue Mutual Funds Trust.  Effective with the appointment of Mr. Gary, Avenue Europe International Management, L.P. will no longer serve as the Fund's investment sub-adviser given that no portfolio manager of the Fund will be employed by the sub-adviser.  Under Mr. Gary's portfolio management, it is expected that under normal market conditions the Fund will continue to invest in both U.S. and non-U.S. issuers. 

The Board also approved changes to certain non-fundamental investment policies of the Fund, after considering a discussion by the Adviser on the potential benefits of such changes and determining that they were in the best interests of the Fund and its shareholders.  Effective on or about November 23, 2012, it will no longer be an investment policy of the Fund to invest in credit obligations that at the time of purchase are at or below an applicable benchmark plus a credit spread (the "Avenue Credit Thresholds").  In adhering to the Avenue Credit Thresholds, the Fund generally does not invest, at the time the investment is made, in the same credit obligations as the other accounts managed by the Adviser (although their investments may include different obligations of the same issuer).  Upon the removal of the Avenue Credit Thresholds, the Fund may invest in securities and other credit obligations in which other accounts managed by the Adviser, including private funds, also invest. 

In order, among other things, to attempt to mitigate potential conflicts and seek to maintain a portfolio with the risk/return characteristics that the Fund believes to be appropriate for closed-end investment company investors, the Fund will adhere to a policy pursuant to which, at the time an investment is made by the Fund, the Fund's portfolio will have no more than 20% overlap, on a market value basis, at the security specific level with the portfolio securities held by the private funds (in the aggregate) advised by the Adviser or its affiliates.

The Adviser and the Board each believe that the changes to the Fund's non-fundamental investment policies are in the best interests of the Fund's shareholders and will permit the Fund to continue to pursue its investment objective.  The approved changes will not alter the Fund's primary investment objective of a high level of current income with a secondary objective of capital appreciation. 

The Fund is required to provide shareholders 60 days' advance notice of the foregoing non-fundamental policy changes before such changes become effective. Accordingly, shareholders of record as of September 13, 2012 will receive a notice describing the changes discussed above in greater detail, as well as related risks. The notice will also provide information regarding the appointment of Mr. Gary as Portfolio Manager.  No action is required by shareholders of the Fund in connection with these changes.

The Fund also announced today that its Board approved the appointment of Mr. Stephen M. Atkins, Controller of the Adviser, as Treasurer and Chief Financial Officer of the Fund effective immediately.  Mr. Atkins joined the Adviser in December 2010 and has over 20 years of fund accounting and administration experience.

Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. This information, including other information about the Fund, can be found on file with the Securities and Exchange Commission and should be read carefully before investing.

This communication is not an offer to sell or the solicitation of an offer to buy securities of the Fund, nor shall there be any sale of such securities, in any state or jurisdiction in which such offer, solicitation or sale is not permitted.

SOURCE Avenue Income Credit Strategies Fund