Calamos Announces Additional Auction Rate Preferred Security Refinancing
- Calamos to refinance $300 million of outstanding auction rate preferred
securities (ARPs) of Calamos Global Dynamic Income Fund (NYSE: CHW).
- Proceeds of refinancing will be used to redeem approximately 85.7% of
outstanding ARPs for CHW.
- Groundbreaking refinancing in the form of a 3-year extendible note, the
first capital markets refinancing solution for closed-end fund auction
rate preferred securities eligible for purchase by money market funds.
- Total refinancing announced to date stands at $1.239 billion,
representing approximately 54% of all outstanding ARPs issued by Calamos
closed-end funds.
- Calamos continues to seek additional refinancing solutions.
- Calamos to host a conference call on May 6, 2008 at 11:00 am CST to
discuss further details of the CHW refinancing.
NAPERVILLE, Ill., May 2, 2008-- 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.
SOURCE: Calamos
CONTACT: Ken Fincher, Vice President of Calamos Advisors LLC,
+1-630-245-1076, kfincher@calamos.com
Web site: http://www.calamos.com