Calamos Announces Additional Auction Rate Preferred Security Refinancing
May 02 2008 - 2:50PM
PR Newswire (US)
- Calamos to refinance $300 million of outstanding auction rate
preferred securities (ARPs) of Calamos Global Dynamic Income Fund
(NYSE: CHW). NAPERVILLE, Ill., May 2 /PRNewswire-FirstCall/ --
Calamos Investments announced today that it intends to refinance
$300 million of the outstanding auction rate preferred securities
(ARPs) issued by the Calamos Global Dynamic Income Fund (NYSE:CHW).
This announcement comes a week after Calamos announced the
refinancing of an aggregate of $939 million of outstanding ARPs of
the Calamos Global Total Return Fund (NYSE:CGO) and the Calamos
Strategic Total Return Fund (NYSE:CSQ). "We have stressed all along
that we would work rapidly to secure solutions to the recent
liquidity crisis in the ARPs market," stated John P. Calamos, Sr.,
the chairman, chief executive officer and co-chief investment
officer of Calamos Investments. "We are committed to seeing this
issue through to a successful resolution across our entire fund
complex, and we want our fund shareholders to know that we have
been and will continue to focus on finding solutions for all of our
closed-end fund shareholders." Calamos has secured an alternative
form of borrowing that will enable, based on current market
conditions, CHW to redeem approximately 85.7% or $300 million of
its outstanding ARPs at their par value. The refinancing comes in
the form of the first money market eligible extendible note to be
issued by a closed-end fund. This refinancing, together with the
previously announced refinancings of CGO and CSQ, represents $
1.239 billion or approximately 53.8% of the total auction rate
preferred outstanding in the five Calamos closed-end funds. Upon
completion of the refinancing, which has been approved by the Board
of Trustees of CHW, the leverage ratio for the fund is not
currently expected to change materially and the funds will continue
to meet the asset coverage requirements of the Investment Company
Act of 1940. Since the amount of refinancing for CHW is less than
the total amount outstanding, this refinancing will take place pro
rata by auction series. Below is a chart showing the shares
outstanding per series and the number that the fund will redeem via
this refinancing. It is important to note that the Depository Trust
Company (DTC), the securities' holder of record, will determine how
to allocate this partial redemption of shares among each
participant broker-dealer account. Each participant broker-dealer,
as nominee for underlying beneficial owners (street name
shareholders), in turn will determine how redeemed shares are
allocated among its beneficial owners. CHW Auction CUSIP Shares to
be Redemption Redemption Series redeemed/outstanding Percent Amount
Monday 12811L206 2,400/2,800 85.7 % $60,000,000 Tuesday 12811L305
2,400/2,800 85.7 % $60,000,000 Wednesday 12811L404 2,400/2,800 85.7
% $60,000,000 Thursday 12811L503 2,400/2,800 85.7 % $60,000,000
Friday 12811L602 2,400/2,800 85.7 % $60,000,000 The fund expects to
begin issuing redemption notices in the next several days and
redemptions will coincide with the completion of the refinancing
transaction. Calamos Investments will host a conference call at
11:00 a.m., central time, on May 6, 2008, to discuss the
refinancing of the fund's ARPs. The conference call is accessible
by dialing one of the following numbers, in the US or Canada dial
800.379.3942, internationally or locally dial 706.679.7206. The
conference ID is 46468685. If you choose to listen online please
visit our website for more details. In addition, up-to-the-minute
information regarding all Calamos ARPS-related solutions can be
found at http://www.calamos.com/ARPSInformationCenter.aspx About
Calamos Calamos Investments is a diversified investment firm
offering equity, fixed-income, convertible and alternative
investment strategies, among others. The firm serves institutions
and individuals via separately managed accounts and a family of
open-end and closed-end funds, providing a risk-managed approach to
capital appreciation and income-producing strategies. For more
information, visit http://www.calamos/closedendfunds/default.aspx.
From time to time, information or statements provided by us,
including those within this news release, may contain certain
forward-looking statements relating to future events, future
transactions, future financial performance, future potential costs,
expectations, the competitive and regulatory environment and future
market conditions. Forward-looking statements are based on
information available at the time those statements are made and/or
management's good faith belief as of that time with respect to
future events, and are subject to risks and uncertainties that
could cause actual performance or results to differ materially from
those expressed in or suggested by the forward-looking statements.
Such risks and uncertainties include, but are not limited to:
catastrophic or unpredictable events, changing costs of leverage,
strategy implementation obstacles, fluctuations in the financial
markets and the competitive conditions in the fund, asset
management and broader financial services sectors and other risks
inherent in the financial and trading markets, including liquidity
issues. DATASOURCE: Calamos CONTACT: Ken Fincher, Vice President of
Calamos Advisors LLC, +1-630-245-1076, Web site:
http://www.calamos.com/
Copyright