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.
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