Calamos Announces Auction Rate Preferred Refinancing for Calamos Convertible Opportunities and Income Fund (NYSE: CHI) and Calamos Convertible and High Income Fund (NYSE: CHY)
- Calamos Convertible Opportunities and Income Fund (NYSE: CHI) to refinance $280 million of outstanding auction rate preferred securities (ARPs).
- Calamos Convertible and High Income Fund (NYSE: CHY) to refinance $350 million of outstanding auction rate preferred securities.
- The funds will use the proceeds of the refinancings to redeem approximately 72.9% of outstanding ARPs for CHI and 81.4% of CHY.
- Total refinancing announced to date across the Calamos closed-end fund complex stands at $1.869 billion, representing approximately 81.2% of all outstanding ARPs issued by Calamos closed-end funds.
- With this announcement, Calamos has now secured refinancing solutions for each of its closed-end funds.
- Calamos continues to pursue leverage alternatives that will address the remaining outstanding ARPs across the Calamos closed-end fund complex.
- Calamos to host a conference call on May 19, 2008 at 11:00 am CT to discuss further details of the refinancings.
NAPERVILLE, Ill., May 15, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Calamos Investments
announced today that two of its closed-end funds, the Calamos Convertible
Opportunities and Income Fund (NYSE: CHI) and the Calamos Convertible and High
Income Fund (NYSE: CHY), intend to refinance, in aggregate, $630 million of
their outstanding auction rate preferred securities (ARPs). "We are pleased
to be able to refinance a significant portion of each fund's ARPs," stated
John P. Calamos, Sr., the chairman, chief executive officer and co-chief
investment officer of Calamos Asset Management. "We nevertheless recognize
that our work is not done, and we remain committed to obtaining solutions for
those ARPs that will remain outstanding after these refinancings and to do so
in a manner consistent with the best interests of all of our closed-end fund
shareholders."
The funds have secured an alternative form of borrowing that will enable,
based on current market conditions, CHI to redeem approximately 72.9% or $280
million and CHY to redeem 81.4% or $350 million of their outstanding ARPs at
par. These refinancings, together with previously announced refinancings of
the Calamos Global Total Return Fund (NYSE: CGO), Calamos Strategic Total
Return Fund (NYSE: CSQ) and Calamos Global Dynamic Income Fund (NYSE: CHW),
represent $1.869 billion or approximately 81.2% of the total ARPs outstanding
in the five Calamos closed-end funds.
Upon completion of these refinancings, which the Board of Trustees of both
CHI and CHY have approved, the leverage ratio for the funds are 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 refinancings for CHI and CHY is less than the total
amount outstanding of each fund's ARPs, the refinancings will take place pro
rata by auction series. Below is a chart showing the shares outstanding per
series and the number of shares each fund will redeem. It is important to note
that the Depository Trust Company (DTC), the securities' holder of record,
will determine how to allocate the 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.
CHI CUSIP Shares to be Redemption Redemption
Auction Series Redeemed/Outstanding Percent Amount
Monday 128117207 1,488/2,040 72.9 % $37,200,000
Tuesday (28 day) 128117306 1,488/2,040 72.9 % $37,200,000
Wednesday 128117405 1,487/2,040 72.9 % $37,175,000
Thursday7 128117702 1,750/2,400 72.9 % $43,750,000
Friday7 128117801 1,750/2,400 72.9 % $43,750,000
Wednesday28 128117603 1,750/2,400 72.9 % $43,750,000
Thursday (28 day) 128117504 1,487/2,040 72.9 % $37,175,000
CHY CUSIP Shares to be Redemption Redemption
Auction Series Redeemed/Outstanding Percent Amount
Monday 12811P207 2,442/3,000 81.4 % $61,050,000
Tuesday 12811P306 2,442/3,000 81.4 % $61,050,000
Wednesday 12811P405 2,442/3,000 81.4 % $61,050,000
Thursday 12811P504 2,442/3,000 81.4 % $61,050,000
Friday 12811P603 2,442/3,000 81.4 % $61,050,000
Series A (28 day) 12811P702 1,790/2,200 81.4 % $44,750,000
The funds expect to begin issuing redemption notices in the next several
days and redemptions will coincide with the completion of the refinancing
transactions.
Calamos Investments will host a conference call at 12:00 p.m. ET/11:00
a.m. CT on May 19, 2008, to discuss the refinancing of the funds' ARPs. The
conference call is accessible by dialing one of the following numbers, in the
U.S. or Canada dial 800.379.3942, internationally or locally dial
706.679-7206. The conference ID is 48122309. 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.com/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 Investments
CONTACT:
Ken Fincher, Vice President of Calamos Advisors LLC,
+1-630-245-1076, kfincher@calamos.com
Web site: http://www.calamos.com