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AIM Floating Rate Fund
11 Greenway Plaza, Suite 100
[AIM LOGO APPEARS HERE] Houston, Texas 77046-1173
--Registered Trademark-- 1-800-959-4246
REPURCHASE OFFER NOTICE
October 27, 2000
Dear AIM Floating Rate Fund Shareholder:
Your fund's fourth quarter offer to repurchase a portion of its outstanding
shares will begin on October 27, 2000. If you are not interested in selling any
of your shares at this time, you do not need to do anything. The fund holds
repurchase offers quarterly and we will contact you again next quarter to remind
you of the next repurchase offer period.
We extend this quarterly repurchase offer to provide liquidity to
shareholders because shares of your fund are not redeemable daily for cash and
are not traded on a stock exchange. You can sell fund shares only during one of
the fund's scheduled quarterly repurchase offer periods, so we would like to
make you aware of the deadlines and procedures should you wish to do so. NOTE
THAT EARLY WITHDRAWAL OF SHARES FROM THIS FUND MAY RESULT IN A SALES CHARGE;
consult your financial representative for more information. Please remember that
you are not obligated to do anything with your shares at this time.
The repurchase offer period begins on October 27, 2000, and ends on
November 17, 2000. If you wish to sell any of your fund shares during this
tender period, refer to your account statement to determine how your shares are
registered:
1. If your shares are held in your own name, complete the attached
Repurchase Request Form and return it to A I M Fund Services, Inc., the
fund's Transfer Agent, by the close of the New York Stock Exchange
(normally 4:00 P.M. EST) on November 17, 2000. The fund currently does not
charge a processing fee for handling repurchase requests.
2. IF YOUR SHARES ARE HELD FOR YOU BY YOUR BROKER-DEALER, OR FOR YOUR
RETIREMENT PLAN BY YOUR RETIREMENT PLAN TRUSTEE, YOU WILL NEED TO ASK YOUR
BROKER-DEALER OR RETIREMENT PLAN TRUSTEE TO SUBMIT THE REPURCHASE REQUEST
FOR YOU. Your financial advisor or broker may charge a transaction fee for
that service. Please refer to your fund Prospectus and the enclosed
Repurchase Offer Terms and Repurchase Request Form for more details.
You may, of course, elect to keep your AIM Floating Rate Fund shares at
this time, in which case you may disregard this notice and the attached forms.
However, should you currently wish to sell any of your shares, remember that all
requests must be received in good order by A I M Fund Services, Inc., the fund's
Transfer Agent, at its office in Texas by the close of the New York Stock
Exchange (normally 4:00 P.M. EST) on November 17, 2000, the Repurchase Request
Deadline.
The next repurchase offer will be held January 26, 2001 through February
16, 2001.
If you have questions, please call your financial advisor or the Transfer
Agent at 1-800-959-4246.
Sincerely,
A I M Fund Services, Inc.
Transfer Agent
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[AIM LOGO APPEARS HERE]
--Registered Trademark--
AIM FLOATING RATE FUND
REPURCHASE OFFER TERMS
OCTOBER 27, 2000
1. THE OFFER. AIM Floating Rate Fund (the "Fund") is offering to repurchase
for cash up to ten percent (10%) of the aggregate of its issued and outstanding
Class B and Class C shares of beneficial interest ("Shares") at a price equal to
the respective net asset value ("NAV" or "Net Asset Value") as of the close of
the New York Stock Exchange on the Repurchase Pricing Date (defined below) upon
the terms and conditions set forth in this Offer, the Repurchase Offer Notice,
the Fund's Prospectus, and the related Repurchase Request Form. Together those
documents constitute the "Repurchase Offer". The purpose of the Repurchase Offer
is to provide liquidity to shareholders of the Fund. The offer is not
conditioned upon the tender for repurchase of any minimum number of Shares. All
classes of Shares are considered to be a single class for the purposes of
allocating repurchases under this Repurchase Offer.
2. REPURCHASE REQUEST DEADLINE. All tenders of Shares for repurchase must
be received in proper form by A I M Fund Services, Inc., the Fund's Transfer
Agent, at its office in Texas or by its designated agents on or before the close
of the New York Stock Exchange (normally the Exchange closes at 4:00 P.M.,
Eastern Time, but may close earlier on certain days) on November 17, 2000.
Repurchase Requests submitted to the Transfer Agent must be sent to the
addresses or phone numbers specified in this Repurchase Offer.
3. REPURCHASE PRICING DATE. The Net Asset Values of Class B and Class C
Shares for repurchases must be determined no later than December 1, 2000.
However, the Fund intends to determine those Net Asset Values on November 17,
2000 (the Repurchase Request Deadline), if doing so is not likely to result in
significant dilution of the prices of the Shares, or as soon as such
determination can be made after that date. If the Fund chooses a Repurchase
Pricing Date later than the Repurchase Request Deadline, there is a risk that
the Fund's Net Asset Values per share may fluctuate between those dates.
4. NET ASSET VALUES. On October 16, 2000, the Net Asset Value per share of
the Fund's Class B shares was $9.47, and the Net Asset Value per share of the
Fund's Class C shares was $9.46. You must determine whether to tender Shares
prior to the Repurchase Request Deadline, but the Net Asset Values at which the
Fund will repurchase Shares will not be calculated until the Repurchase Pricing
Date. The Net Asset Values may fluctuate between the date you submit your
Repurchase Request and the Repurchase Request Deadline (and the Repurchase
Pricing Date, if different.) The Net Asset Values on the Repurchase Request
Deadline and the Repurchase Pricing Date could be higher or lower than on the
date you submit a Repurchase Request. Please call A I M Fund Services, Inc. at
1-800-959-4246 for the Fund's current Net Asset Values.
5. PAYMENT FOR SHARES REPURCHASED. Payment for all Shares repurchased
pursuant to this Repurchase Offer will be made not later than 7 days after the
Repurchase Pricing Date.
6. INCREASE IN NUMBER OF SHARES REPURCHASED; PRO RATA REPURCHASES. If
shareholders tender for repurchase more Shares than the number of Shares that
the Fund is offering to repurchase, the Fund may (but is not obligated to)
increase the number of Shares that the Fund is offering to purchase by up to two
percent (2%) of the number of Shares outstanding on the Repurchase Request
Deadline. The Fund may increase the number of Shares to be repurchased or the
Fund may decide not to do so. In either case, if the number of Shares tendered
for repurchase exceeds the number of Shares which the Fund is offering to
repurchase, the Fund will repurchase tendered shares on a pro rata basis. The
Fund may, in its discretion, accept all Shares tendered by shareholders who own
less than 100 shares and tender all their Shares for repurchase in this
Repurchase Offer, before prorating the Shares tendered by other shareholders.
There can be no assurance that the Fund will be able to repurchase all the
Shares that you tender even if you tender all the Shares that you own. In the
event of an oversubscribed Repurchase Offer, you may be unable to liquidate some
or all of your investment at Net Asset Value. You may have to wait until a
subsequent repurchase offer to tender shares that the Fund was unable to
repurchase, and you would be subject to the risk of Net Asset Value fluctuations
during that time.
7. WITHDRAWAL OF TENDER OF SHARES FOR REPURCHASE. Shares tendered pursuant
to the Repurchase Offer may be withdrawn or you may change the number of Shares
tendered for Repurchase at
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any time prior to the close of the New York Stock Exchange (normally the
Exchange closes at 4:00 P.M., Eastern Time, but may close earlier on certain
days) on November 17, 2000 (the Repurchase Request Deadline). You must send a
written notice to the Transfer Agent at one of the addresses specified in this
Repurchase Offer, and the Transfer Agent must receive it before the Repurchase
Request Deadline.
8. SUSPENSION OR POSTPONEMENT OF REPURCHASE OFFER. The Board of Trustees of
the Fund may suspend or postpone this Repurchase Offer only by a majority vote
of the Trustees (including a majority of the disinterested Trustees) and only:
(A) for any period during which the New York Stock Exchange or any
market in which the securities owned by the Fund are principally traded is
closed, other than customary weekend and holiday closings, or during which
trading in such market is restricted;
(B) for any period during which an emergency exists as a result of
which disposal by the Fund of securities owned by it is not reasonably
practicable, or during which it is not reasonably practicable for the Fund
fairly to determine the value of its net assets; or
(C) for such other periods as the Securities and Exchange Commission
may by order permit for the protection of shareholders of the Fund; or
(D) if the Repurchase Offer would cause the Fund to lose its status as
a regulated investment company under Subchapter M of the Internal Revenue
Code.
9. TAX CONSEQUENCES. Shareholders should consult their tax advisers
regarding the specific tax consequences, including state and local tax
consequences, of a repurchase of their Shares. Special tax rules apply to shares
repurchased from retirement plan accounts. A repurchase of Shares pursuant to
the Repurchase Offer (including an exchange for shares of another AIM fund) will
be treated as a taxable sale or exchange of the Shares if the tender (i)
completely terminates the shareholder's interest in the Fund, (ii) is treated
under the Internal Revenue Code as a distribution that is "substantially
disproportionate" with respect to the shareholder or (iii) is treated under the
Internal Revenue Code as a distribution that is "not essentially equivalent to a
dividend." A "substantially disproportionate" distribution generally requires a
reduction of at least 20% in the shareholder's proportionate interest in the
Fund after all Shares are tendered. A distribution "not essentially equivalent
to a dividend" requires that there be a "meaningful reduction" in the
shareholder's interest, which should be the case if the shareholder has a
minimal interest in the Fund, exercises no control over Fund affairs and suffers
a reduction in his or her proportionate interest. The Fund intends to take the
position that tendering shareholders will qualify for sale or exchange
treatment. If the transaction is so treated, any recognized gain or loss will be
treated as a capital gain or loss by shareholders who hold their Shares as a
capital asset and as a long-term capital gain or loss if such Shares have been
held for more than twelve months. If the transaction is not treated as a sale or
exchange for tax purposes, the amount received upon a repurchase of Shares will
consist in whole or in part of ordinary dividend income, a return of capital or
capital gain, depending on the Fund's earnings and profits for its taxable year
and the shareholder's basis in the Shares. In addition, if any amounts received
are treated as a dividend to tendering shareholders, a constructive dividend may
be received by non-tendering shareholders whose proportionate interest in the
Fund has been increased as a result of the tender.
10. EARLY WITHDRAWAL CHARGES. The Fund does not currently charge a special
handling or processing fee for repurchases. However, if you tender for
repurchase Class B and Class C Shares that are subject to Early Withdrawal
Charges as described in the Fund's Prospectus, and if those Shares are
repurchased by the Fund, the applicable Early Withdrawal Charge will be deducted
from the proceeds of the repurchase of your shares. If you ask that a specific
number of shares be repurchased and those shares are repurchased, the applicable
sales charge will be deducted from the repurchase proceeds. If you ask the Fund
to repurchase a sufficient number of shares to provide you with proceeds of a
specific dollar amount, and if some or all of those shares are subject to Early
Withdrawal Charges, then (assuming your request is not subject to pro-ration)
the Fund will repurchase a sufficient number of shares to pay the net proceeds
you have requested and enough additional shares to pay the applicable Early
Withdrawal Charge. If you claim entitlement to a waiver or reduction of Early
Withdrawal Charges based upon the terms of the Fund's current Prospectus, you
must identify the basis of that entitlement to the Transfer Agent in written
instructions submitted as part of your Repurchase Request Form.
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11. PROPER FORM OF REPURCHASE REQUEST DOCUMENTS. All questions as to the
validity, form, eligibility (including, for example, the time of receipt) and
acceptance of repurchase requests will be determined by the Fund and its
Transfer Agent, in their sole discretion, and that determination will be final
and binding. The Fund reserves the right to reject any and all tenders of
repurchase requests for Shares determined not to be in the proper form, or to
refuse to accept for payment, purchase, exchange or pay for any Shares if, in
the opinion of counsel to the Fund or the Transfer Agent, accepting, purchasing,
exchanging, or paying for such Shares would be unlawful. The Fund also reserves
the absolute right to waive any of the conditions of this Repurchase Offer or
any defect in any tender of Shares, whether in general or with respect to any
particular Shares or shareholder(s). The Fund's interpretations of the terms and
conditions of this Repurchase Offer shall be final and binding. Unless waived,
any defects or irregularities in connection with repurchase requests must be
cured within the times as the Fund shall determine. Tenders of Shares will not
be deemed to have been made until all defects or irregularities have been cured
or waived.
Neither the Fund, A I M Fund Services, Inc., A I M Advisors, Inc. (the
Fund's investment advisor) or A I M Distributors, Inc. (the Fund's distributor)
nor any other person is or will be obligated to give notice of any defects or
irregularities in repurchase requests tendered, nor shall any of them incur any
liability for failure to give any such notice.
Neither the Fund nor its Board of Trustees make any recommendation to any
shareholder whether to tender or refrain from tendering Shares. Each shareholder
must make an independent decision whether to tender Shares and, if so, how many
Shares to tender.
No person has been authorized to make any recommendation on behalf of the
Fund whether shareholders should tender pursuant to this Repurchase Offer. No
person has been authorized to give any information or to make any
representations in connection with this Repurchase Offer other than those
contained in this Repurchase Offer or in the Fund's Prospectus. If given or
made, any such recommendations and such information must not be relied upon as
having been authorized by the Fund, its investment advisor, distributor or
Transfer Agent.
For the Fund's current Net Asset Values per share and other information
about this Repurchase Offer, or for a copy of the Fund's Prospectus, call A I M
Fund Services, Inc. at 1-800-959-4246 or contact your financial advisor.
Dated: October 27, 2000
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AIM FLOATING RATE FUND REPURCHASE [AIM LOGO APPEARS HERE]
REQUEST FORM --Registered Trademark--
Use this Repurchase Request Form only if your shares are registered in your name
at AIM (please check your account statement). IF YOUR SHARES ARE HELD FOR YOU BY
YOUR BROKER-DEALER, RETIREMENT PLAN TRUSTEE, OR OTHER FIDUCIARY, YOU MUST
CONTACT THEM TO HAVE THEM SUBMIT A REPURCHASE REQUEST FORM ON YOUR BEHALF.
o To the AIM Floating Rate Fund: I/we hereby tender the AIM Floating Rate Fund
shares designated below for repurchase at a price equal to their net asset
value per share (NAV) on the Repurchase Pricing Date that applies to this
quarterly Repurchase Offer. I/we understand that if any shares repurchased
are subject to an Early Withdrawal Charge, that charge will be deducted from
the proceeds of my repurchased shares.
<TABLE>
<S> <C>
PLEASE USE BLUE OR BLACK INK PLEASE PRINT CLEARLY IN BLOCK CAPITAL LETTERS
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(1) ACCOUNT INFORMATION
AIM Account Number
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[ ] Class B shares [ ] Class C shares
Names of Registered Shareholders (Please fill in EXACTLY as listed on your account statement)
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Daytime Telephone Number
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(2) SHARES TO BE TENDERED FOR REPURCHASE (Please fill in all applicable information. Please check only one box.)
[ ] PARTIAL TENDER OF SHARES Please repurchase ______________________ shares from my account.
(number of shares)
[ ] FULL TENDER OF ALL SHARES Please repurchase all shares from my account.
[ ] PARTIAL TENDER - DOLLAR AMOUNT Please repurchase enough of my shares so that I will receive $ ________.
(If an Early Withdrawal Charge applies, enough shares will be repurchased
to provide the net proceeds requested.)
[ ] FULL EXCHANGE OPTION Please repurchase all shares from my account and exchange like shares into
the AIM _______ Fund.
[ ] PARTIAL EXCHANGE OPTION Please repurchase _____________________ shares OR
Please repurchase $_________ from my account and exchange like shares into
the AIM ________ Fund.
(By checking this option, you certify that you have already received a
current prospectus of that Fund.)
[ ] I am entitled to a waiver of the Early Withdrawal Charge (state basis using categories identified in the Prospectus.
You must provide this information with this request or the full Early Withdrawal Charge will be deducted):
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IF YOU SELECTED EITHER ONE OF THE EXCHANGE OPTIONS, DO NOT COMPLETE SECTION 3. GO DIRECTLY TO SECTION 4.
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</TABLE>
(3) PAYMENT AND DELIVERY INSTRUCTIONS
Unless you have elected to exchange your shares for shares of another AIM fund,
a check for the proceeds of repurchased shares will be issued in the name of the
registered shareholder(s) and mailed to the address of record on the account.
ALTERNATE PAYMENT METHODS REQUIRE YOUR SIGNATURE TO BE GUARANTEED. If alternate
payment and/or delivery is required, please provide instructions below.
[ ] Please make the check payable to the registration and address of record.
[ ] Please make the check payable to:
<TABLE>
<S> <C> <C>
First Name M.I. Last Name
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Street Address
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City State Zip
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</TABLE>
FLR-FRM-1 REV 7/00 www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
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<TABLE>
<S> <C> <C>
[ ] Please check one: [ ] mail to my bank [ ] wire to my bank via Automatic Clearing House (ACH)*
Bank Name
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Bank Address
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City State Zip
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Bank ABA Number (for wire request) Bank Account Number
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Bank Phone Number [ ] Checking [ ] Savings
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Name(s) on Account
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*Payment via the ACH system will be transmitted to your bank 2 business days after the transaction occurs.
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(4) CERTIFICATION AND SIGNATURE
Social Security Number or Taxpayer Identification Number
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Under penalty of perjury, I certify that
(1) the number set forth above is my correct Social Security Number or Taxpayer Identification Number, and
(2) I am not subject to backup withholding either because (a) I am exempt from backup withholding, (b) I have not been notified by
the Internal Revenue Service ("IRS") that I am subject to backup withholding as a result of failure to report all interest or
dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding.
You must strike out the language in (2) above if you have been notified that you are subject to backup withholding and you have not
received a subsequent notice from the IRS that backup withholding has been terminated.
Signature(s) of Owner(s): PLEASE SIGN EXACTLY AS YOUR NAME APPEARS ON YOUR ACCOUNT. ALL OWNERS OF JOINT ACCOUNTS
MUST SIGN THIS FORM.
Date
Signature of Owner
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Month Day Year
Date
Signature Of Joint Owner
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Month Day Year
Also provide your title and submit evidence of your authority in a form satisfactory to A I M Fund Services, Inc.(AFS) if the shares
are held in the name of a trustee, executor, guardian, corporation or other representative capacity.
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Each signature must be guaranteed by a bank, broker-dealer, savings and loan
association, credit union, national securities exchange or any other "eligible
(Please place Signature Guarantee here) guarantor institution" as defined in rules adopted by the Securities and
Exchange Commission. Signatures may also be guaranteed with a medallion stamp of
the STAMP program or the NYSE Medallion Signature Program, provided that the
amount of the transaction does not exceed the relevant surety coverage of the
medallion.
A SIGNATURE GUARANTEE MAY NOT BE OBTAINED THROUGH A NOTARY PUBLIC.
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ALL SIGNATURES MUST BE GUARANTEED UNLESS ALL OF THE FOLLOWING CONDITIONS APPLY:
o THIS REPURCHASE REQUEST FORM IS SIGNED BY ALL REGISTERED HOLDER(S) OF THE SHARES, AND
o THERE IS NO CHANGE OF REGISTRATION FOR ANY SHARES YOU WILL CONTINUE TO HOLD, AND
o THE PAYMENT IS TO BE SENT TO THE REGISTERED HOLDER(S) OF THE SHARES AT THE ADDRESS SHOWN IN THE REGISTRATION SECTION OF YOUR
ACCOUNT STATEMENT (PROVIDED NO ADDRESS CHANGES HAVE BEEN MADE WITHIN THE PAST 30 DAYS) AND
o THE PROCEEDS WILL BE $50,000 OR LESS
If you have any questions about this form, call AFS at 1-800-959-4246. This form must be RECEIVED by AFS no later than the close of
the New York Stock Exchange (normally 4:00 P.M. EST) on the last day of the current tender period (the Repurchase Request Deadline).
Repurchase Requests received by AFS cannot be revoked after the Repurchase Request Deadline. Any request received outside of an
active tender period or requests for future tender periods will be returned.
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IMPORTANT FUND INFORMATION
PLEASE MAIL COMPLETED FORM TO: A I M Fund Services, Inc. OVERNIGHT MAIL: A I M Fund Services, Inc.
P.O. Box 4739 11 Greenway Plaza, Suite 800
Houston, TX 77210-4739 Houston, TX 77046
</TABLE>
FLR-FRM-1 REV 7/00 www.aimfunds.com INVEST WITH DISCIPLINE
--Registered Trademark--
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[AIM LOGO APPEARS HERE] FLR-FRM-1 REV 10/00 INVEST WITH DISCIPLINE
--Registered Trademark-- --Registered Trademark--
