CALAMOS INVESTMENTS News
Calamos Announces Auction Rate Preferred Refinancing for Calamos Convertible Opportunities and Income Fund (NYSE: CHI) and Calamos Convertible and High Income Fund (NYSE: CHY)
The funds have secured an alternative form of borrowing that will enable, based on current market conditions, CHI to redeem approximately 72.9% or
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
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
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