NAPERVILLE, Ill., May 6, 2004 (PRIMEZONE) -- CALAMOS INVESTMENTS announced today the issuance of $1.08 billion in preferred shares for its third closed-end fund, the CALAMOS Strategic Total Return Fund (NYSE:CSQ).
With the addition of the preferred shares to the proceeds from the Fund's initial public offering in March, the Fund raised approximately $3.4 billion in total assets, excluding sales load and other offering expenses. The Fund's March initial public offering raised in excess of $2.1 billion (before exercise of the underwriters' overallotment option) and was one of the largest in closed-end fund history.
The Fund focuses on total return through a combination of capital appreciation and current income. It invests primarily in common and preferred stocks, convertible securities, and income-producing securities such as investment grade and below investment grade debt securities.
The preferred shares will be rated "AAA" by Standard & Poor's, a division of The McGraw-Hill Companies Inc., and "AAA" by Fitch Inc. The managing underwriters for the preferred shares were Citigroup Global Markets Inc.; Merrill Lynch; Pierce, Fenner & Smith Incorporated; and UBS Securities LLC. The auction agent is Bank of New York.
CALAMOS ASSET MANAGEMENT, INC. manages two other closed-end funds, the CALAMOS Convertible Opportunities and Income Fund (NYSE:CHI) and the CALAMOS Convertible and High Income Fund (NYSE:CHY).
About CALAMOS
CALAMOS INVESTMENTS provides professional money management services to clients that include major corporations, public and private institutions, pension funds, insurance companies and individuals and is an investment advisor to open-end and closed-end funds. The firm has been engaged in securities research and investing since 1977 and offers equity, high yield, global/international, convertible growth, convertible and alternative investment strategies. As of March 31, 2004, the Firm's assets under management totaled $29.0 billion.
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Past performance is no guarantee of future results. You can purchase or sell common shares daily. Like any other stock, market price will fluctuate with the market. Upon sale, your shares may have a market price that is above or below net asset value and may be worth more or less than your original investment. Due to ongoing market volatility, performance is subject to substantial short-term fluctuations.
High Yield Securities: Under normal circumstances the Fund may invest a portion of its managed assets in high yield securities. Investment in high yield securities involves substantial risk of loss. Below investment grade debt securities or comparable unrated securities are commonly referred to as "junk bonds" and are considered predominantly speculative with respect to the issuer's ability to pay interest and principal and are susceptible to default or decline in market value due to adverse economic and business developments. Calamos' judgment about the attractiveness, relative value or potential appreciation of a particular sector, security or investment strategy may prove to be incorrect.
Convertible Securities: Under normal circumstances the Fund may invest a portion of its managed assets in convertible securities. Convertible securities generally offer lower interest or dividend yields than non-convertible securities of similar quality.
Foreign Securities: Investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers. These risks are more pronounced to the extent that the Fund invests a significant portion of its non-U.S. investments in one region or in the securities of emerging market issuers. These risks may include: less information about non-U.S. issuers or markets may be available due to less rigorous disclosure or accounting standards or regulatory practices; many non-U.S. markets are smaller, less liquid and more volatile. In a changing market, Calamos may not be able to sell the Fund's portfolio securities at times, in amounts and at prices it considers reasonable; adverse effect of currency exchange rates or controls on the value of the Fund's investments; the economies of non-U.S. countries may grow at slower rates than expected or may experience a downturn or recession; economic, political and social developments may adversely affect the securities markets; and withholding and other non-U.S. taxes may decrease the Fund's return.
Shares of closed-end funds frequently trade at a market price that is below their net asset value.