Calamos Dynamic Convertible and Income Fund Raises $555 Million
Innovator in Convertible Closed-End Funds Introduces Additional Product Features
NAPERVILLE, Ill., March 27, 2015 /PRNewswire/ -- Calamos Investments, a pioneer in convertible securities investing since the 1970s, today announced the completion of pricing for the initial public offering of the Calamos Dynamic Convertible and Income Fund (NASDAQ: CCD). The new closed-end fund raised $555 million (or 22,200,000 common shares at a price of $25.00 per share) in its common share offering, excluding any exercise of the underwriters' option to purchase additional common shares. If the underwriters exercise that option in full, the fund will have raised approximately $638.25 million. Assuming the use of leverage of approximately 28% of the fund's managed assets, it is anticipated that the fund's managed assets will exceed $845 million. The fund is the first closed-end fund IPO since November 2014 and the first such convertible offering since 2007. The fund will begin trading today on the NASDAQ Global Select Market under the symbol CCD.
Calamos Dynamic Convertible and Income Fund is designed to offer total return through a combination of capital appreciation and current income by investing primarily in a portfolio of convertible and income producing securities, including high yield bonds. To help generate income and attempt to achieve a more favorable reward/risk profile, the fund has the flexibility to opportunistically write options on a portion of the portfolio's securities.
The fund includes a term limit provision, a feature not commonly seen in the closed-end fund arena, which provides that the fund will terminate on its 15th anniversary in 2030, unless the term is extended by the fund's board of trustees for up to one year or shareholders elect to eliminate or extend the term.
Also, Calamos Investments is pleased to announce an investment advisor share purchase program after expiration of the underwriters' option to purchase additional shares. Under this program, Calamos Advisors LLC and/or its affiliates have committed to purchase up to $20 million worth of common shares of CCD under certain predetermined criteria for a limited period following CCD's IPO.
"With the launch of CCD, Calamos Investments continues its legacy of innovation and shareholder focus within the closed-end fund marketplace. We are pleased to offer investors a product that draws upon the firm's nearly four-decades of leadership in convertible securities in a way that is both innovative and timely," says John P. Calamos, Sr., CEO and Global Co-CIO of Calamos Investments.
The fund plans to pay its first monthly distribution 60-90 days after its IPO date and will seek to provide predictable, monthly distributions through the implementation of a level distribution policy.
Calamos Advisors LLC, a subsidiary of Calamos Investments, is the fund's advisor and oversees a range of investment strategies. The lead managers of the underwriting syndicate were Wells Fargo Securities, Ameriprise Financial Services, BofA Merrill Lynch and RBC Capital Markets.
Calamos Investments also manages five other closed-end funds, exceeding more than $6.2 billion in total AUM.
For more details on the Calamos Dynamic Convertible and Income Fund (CCD), please visit www.calamos.com/CCD.
About Calamos
Calamos Investments is a diversified global investment firm offering innovative investment strategies including equity, fixed income, convertible and alternative investments. The firm offers strategies through separately managed portfolios, mutual funds, closed-end funds, private funds, an exchange traded fund and UCITS funds. Clients include major corporations, pension funds, endowments, foundations and individuals, as well as the financial advisors and consultants who serve them. Headquartered in the Chicago metropolitan area, the firm also has offices in London and New York. For more information, please visit www.calamos.com.
Important Risk Information
The fund is a newly organized, diversified, closed-end management investment company designed primarily as a long-term investment and not as a trading tool. The fund invests in a globally diversified portfolio of convertible securities, debt and equity income-producing securities as well as other investments that generate current income and dividends. An investment in the fund's common shares may be speculative and it involves a high degree of risk. The fund should not constitute a complete investment program. Due to the uncertainty in all investments, there can be no assurance that the fund will achieve its investment objective.
The goal of the level-rate distribution policy is to provide investors a predictable, though not assured, level of cash flow. Monthly distributions paid may include net investment income, net realized short-term capital gains and, if necessary, return of capital. Maintenance of this policy may increase transaction and tax costs associated with the fund.
Before investing carefully consider the fund's investment objectives, risks, charges and expenses. Please see the prospectus containing this and other information or call 1.800.582.6959. Read it carefully before investing.
A registration statement relating to the fund's common shares has been filed with, and declared effective by, the Securities and Exchange Commission. This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any offer, solicitation or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction. Before investing, an investor should carefully read the fund's prospectus, which includes a discussion of the fund's investment objective, risks, fees and expenses. A copy of the final prospectus relating to the offering of the fund's common shares may be obtained from the fund without charge by calling 1.800.582.6959.
Certain statements in this press release constitute forward-looking statements. 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: the satisfaction of closing conditions for the fund's initial public offering, the decision of the underwriters to exercise the over-allotment option, the amount of shares purchased under the advisor share purchase program and the ability of the fund to make level cash distributions to shareholders.
Calamos Investments LLC, referred to herein as Calamos Investments®, is a financial services company offering such services through its subsidiaries: Calamos Advisors LLC, Calamos Wealth Management LLC, Calamos Investments LLP and Calamos Financial Services LLC.
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SOURCE Calamos Advisors LLC
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