Calamos Investments Secures $170 Million in New Funding
Calamos Investments Announces Significant New Funding
In a strategic move to bolster its financial standing, Calamos Investments has revealed an impressive issuance of mandatory redeemable preferred (MRP) shares totaling $170 million. This comprehensive approach aims to enhance leverage across its closed-end funds, effectively optimizing their investment potential and providing value for shareholders.
The Benefits of MRP Shares
John Koudounis, the President and CEO of Calamos Investments, articulated the firm’s commitment to delivering innovative solutions for closed-end fund investors. He expressed satisfaction with the execution of this transaction, asserting that it brings notable advantages to common shareholders of Calamos' funds. By leveraging new financial instruments, Calamos aims to enhance its operational capabilities while aligning with market demands.
Institutional Investor Engagement
The MRP shares were adeptly placed with institutional investors, reflecting the strong interest and confidence in Calamos’ strategies. The successful placement signifies robust support from the investment community, underpinning the firm's reputation and operational integrity in the investment landscape.
Details of the MRP Shares
Kroll Bond Rating Agency, LLC (KBRA) has assigned a commendable rating of "AA-" to these MRP shares, highlighting their quality and appeal. These shares are structured for mandatory redemption five years from their issuance, with initial monthly dividends set at 6.24%, contingent on certain economic conditions. This attractive yield positions Calamos notably within the competitive landscape of closed-end funds.
Overview of Calamos Closed-End Funds
The capital raised through the issuance of MRP shares will be directed towards various closed-end funds, including strategic offerings like the 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).
The table below illustrates the aggregate liquidation preference allocated across these funds:
MRP Shares Issuance Table
Fund
CHI (2002): $33.00 million
CHY (2003): $36.00 million
CSQ (2004): $80.00 million
CCD (2015): $21.00 million
Investment Philosophy and Growth
Calamos Investments is recognized for its innovative investment strategies, spanning diverse areas such as alternative investments, multi-asset portfolios, fixed income, and private credit. With assets under management reaching approximately $38.5 billion, including substantial liquid alternatives, the company continues to attract a diverse client base, from individual investors to large institutional entities.
Global Presence and Clientele
Based in the Chicago metropolitan area, Calamos operates additional offices in major hubs such as New York, San Francisco, and Miami. The firm serves a vast array of clients, including financial advisors and pension funds, illustrating its far-reaching influence and commitment to client satisfaction in the global marketplace.
Understanding Investment Risks
Investors are reminded that with opportunities come risks. Each fund carries certain principal risks which can intensify during periods of market volatility. The possibility of losing a portion of the initial investment is inherent, underscoring the importance of thorough analysis and understanding of the investment’s objectives and potential returns.
The firm urges prospective investors to carefully consider investment objectives, risks, charges, and expenses before making decisions. Obtaining a fund prospectus is essential for making informed investment choices.
Frequently Asked Questions
What are MRP shares?
MRP shares are mandatory redeemable preferred shares that provide dividends and can be redeemed after a specified period.
How will the $170 million be used?
Calamos Investments plans to use the funds to enhance leverage in its closed-end funds and provide better returns for shareholders.
What is the significance of the AA- rating?
The AA- rating from KBRA indicates a strong financial product that attracts institutional investors.
Where does Calamos Investments operate?
Calamos has its headquarters in the Chicago area and offices in major cities like New York and San Francisco.
How can I stay updated on Calamos Investments?
Investors can follow Calamos on social media platforms, including LinkedIn and Twitter, for the latest updates and information.
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