Calamos Investments Secures $170 Million for Growth Initiatives
Calamos Investments Announces New Financing Initiative
Calamos Investments, a prominent name in the investment industry, has recently made a significant move by issuing a new series of mandatory redeemable preferred (MRP) shares totaling $170 million. This effort aims to bolster the financial strength of several of its closed-end funds, significantly enhancing their investment strategies.
Enhancing Financial Leverage
John Koudounis, the President and CEO of Calamos Investments, shared the company's ongoing commitment to innovative solutions for its closed-end fund investors. With more than 20 years in the business, Koudounis expressed satisfaction with the terms of this transaction, highlighting its positive implications for the common shareholders of the funds involved.
Ratings and Investor Confidence
The newly issued MRP shares have received an impressive rating of "AA-" from Kroll Bond Rating Agency, LLC (KBRA). This rating underscores the strong credit quality associated with these securities, which were privately placed with institutional investors. Notably, these shares come with mandatory redemption scheduled five years from their issuance, ensuring a structured exit for investors.
Details of the MRP Shares Offering
The Series G MRP shares will provide a monthly cash dividend initially set at a rate of 6.24%. This structure is designed to attract a broad base of investors seeking reliable returns. Moreover, the co-placement agents for this offering were reputable institutions, including Nomura Securities International, Inc. and UBS Securities LLC, assuring potential investors of the credibility of the offering.
Overview of Calamos Closed-End Funds
Calamos Investments operates several closed-end funds, including Calamos Convertible Opportunities and Income Fund (NASDAQ: CHI), Calamos Convertible and High Income Fund (NASDAQ: CHY), Calamos Strategic Total Return Fund (NASDAQ: CSQ), and Calamos Dynamic Convertible and Income Fund (NASDAQ: CCD). Each fund offers unique investment strategies and benefits to investors seeking diverse opportunities in the market.
Fund Series Breakdown
The new MRP shares add value to the current offerings of Calamos, with the following details regarding the funds:
- Calamos Convertible Opportunities and Income Fund (CHI): The fund focuses on convertible securities, supporting investment yields with an aggregate liquidation preference of $33 million.
- Calamos Convertible and High Income Fund (CHY): It has an aggregate liquidation preference of $36 million, targeting income-oriented investors through high-yield debt and convertible securities.
- Calamos Strategic Total Return Fund (CSQ): Specifically designed with a total return strategy, it boasts an aggregate liquidation preference of $80 million.
- Calamos Dynamic Convertible and Income Fund (CCD): This fund, which focuses on dynamic convertible investment opportunities, holds an aggregate liquidation preference of $21 million.
About Calamos Investments
Calamos Investments is a diversified global investment firm that prides itself on offering innovative investment strategies encompassing alternatives, multi-asset solutions, and sustainable equities. With approximately $38.5 billion in assets under management (AUM) and over $16.9 billion in liquid alternative assets, Calamos continues to adapt and grow in response to market demands.
Focus on Client Relationships
Clients of Calamos Investments range from financial advisors to pension funds and individual investors, all benefiting from tailored strategies and portfolio management services. The firm's strategic location throughout key financial markets, including presence in major metropolitan areas, enhances its ability to serve a diverse client base effectively.
Frequently Asked Questions
What are mandatory redeemable preferred shares?
Mandatory redeemable preferred shares are a type of equity security allowing investors to receive periodic dividends, with the obligation for the issuer to redeem them after a specified period.
How do Calamos closed-end funds benefit investors?
Investors benefit from Calamos closed-end funds through professional management, unique investment strategies, and the potential for attractive income and total returns.
What is the significance of the "AA-" rating?
An "AA-" rating signifies a strong credit quality and reduced risk, making the MRP shares attractive to institutional and individual investors.
Where can I find more information about Calamos Investments?
For additional details about Calamos Investments and its funds, visit their official website to explore various investment options and resources.
Can I invest in Calamos funds directly?
Yes, investments can be made directly into Calamos funds, typically through brokerage accounts or financial advisors. It's important to review each fund's prospectus before investing.
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