NAPERVILLE, Ill., Sept. 6, 2017 /PRNewswire/ -- The Board of
Directors of Calamos Investments' six closed-end funds (the Funds)
today announced the issuance of mandatory redeemable preferred
(MRP) shares totaling $593 million.
The newly issued MRP shares will provide financial leverage for the
Funds.
"The successful placement of these shares is a testament to the
strength of the Calamos Closed-End Fund franchise," said
John Koudounis, Chief Executive
Officer of Calamos Investments. He continued, "With our history of
innovation and commitment to delivering closed-end fund solutions
suited for a range of investor needs, the business remains an
important component of our growth strategy going forward."
Fitch Ratings assigned long-term ratings of "AA" to each class
of MRP shares. The MRP shares were privately placed with
institutional investors and were issued in three series subject to
mandatory redemption 5, 7, and 10 years from the date of issuance,
as shown. The Series A, Series B and Series C MRP shares are to pay
monthly cash dividends initially at rates of 3.70%, 4.00% and
4.24%, respectively, subject to adjustment under certain
circumstances. The placement agent for this offering of MRP
shares was Wells Fargo Securities, LLC.
John. P. Calamos, Sr., Founder, Chairman and Global Chief
Investment Officer stated, "This transaction gives our closed-end
funds' additional diversification in their funding structure while
locking in longer term financing at attractive rates which we
believe will benefit the Funds' common shareholders."
MRP Shares
Issuance – Aggregate Liquidation Preference by Series (in
Millions)
|
|
Fund
|
Series
A
(5
years)
|
Series
B
(7
years)
|
Series
C
(10
years)
|
Total
Issued
|
CHI
(inception 06/26/2002)
Calamos Convertible Opportunities and Income Fund
|
$33.25
|
$33.25
|
$33.50
|
$100.00
|
CHY
(inception 05/28/2003)
Calamos Convertible
and High Income Fund
|
$36.50
|
$36.50
|
$37.00
|
$110.00
|
CSQ
(inception 03/26/2004)
Calamos Strategic
Total Return Fund
|
$80.50
|
$80.50
|
$81.00
|
$242.00
|
CGO
(inception 10/27/2005)
Calamos Global Total
Return Fund
|
$4.00
|
$4.00
|
$4.00
|
$12.00
|
CHW
(inception 06/27/2007)
Calamos Global
Dynamic Income Fund
|
$21.50
|
$21.50
|
$22.00
|
$65.00
|
CCD
(inception 03/27/2015)
Calamos Dynamic
Convertible and Income Fund
|
$21.25
|
$21.25
|
$21.50
|
$64.00
|
In connection with the MRP shares issuance, the Funds terminated
an existing credit facility with BNP Paribas and revised the
available credit under an existing credit facility with State
Street Bank and Trust Company, such that the Funds may borrow from
State Street, respectively, up to $430,000,000 (CHI), $480,000,000 (CHY), $830,000,000 (CSQ), $55,000,000 (CGO), $265,000,000 (CHW) and $270,000,000 (CCD), subject to various terms and
conditions.
Additional information about Calamos closed-end funds can be
found on our website at:
www.calamos.com/CHI, www.calamos.com/CHY, www.calamos.com/CSQ,
www.calamos.com/CGO, www.calamos.com/CHW, and
www.calamos.com/CCD.
About Calamos
Calamos Investments is a diversified global investment firm
offering innovative investment strategies including equity,
convertible, fixed income, multi-asset and alternatives. The firm
offers strategies through separately managed portfolios, mutual
funds, closed-end funds, private funds, and UCITS funds. Clients
include major corporations, pension funds, endowments, foundations
and individuals, as well as the financial advisors and consultants
who serve them. Headquartered in the Chicago metropolitan area, the firm also has
offices in London, New York, San
Francisco, and the Miami
area. For more information, please visit www.calamos.com.
*Calamos Investments LLC, referred to herein as Calamos
Investments®, is a financial services company offering
such services through its subsidiaries: Calamos Advisors LLC,
Calamos Wealth Management LLC, Calamos Investments LLP and Calamos
Financial Services LLC.
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SOURCE Calamos Investments