NAPERVILLE, Ill., March 26, 2004 (PRIMEZONE) -- CALAMOS INVESTMENTS first equity-oriented closed-end fund offering, the CALAMOS Strategic Total Return Fund (NYSE:CSQ), raised $2.11 billion in assets during its offering period, placing it among the largest closed-end fund IPOs. Total common share assets for the Fund could reach as much as $2.40 billion if the underwriters fully exercise their over-allotments.
The Fund, which will begin trading on the New York Stock Exchange today under the ticker CSQ, is CALAMOS INVESTMENTS third closed-end fund. During the Fund's offering period from February 25 to March 25, 160.31 million shares were purchased at an initial price of $15. Focusing on total return, the Fund will invest primarily in common and preferred stocks and income-producing securities such as investment grade and below invest grade debt securities. After its invest-up period, dividends will be paid monthly by the Fund, commencing in June, 2004. The Fund's investment team will be overseen by John P. Calamos, Sr., and Nick P. Calamos.
"We're pleased to provide investors with a fund that combines the best strategies of CALAMOS under one umbrella," said John Calamos. "The Fund's flexible investment parameters enable our investment team to do what it does best, finding opportunities across the capital structure of a company. Given our constructive outlook on the current economic environment, we believe there are many timely opportunities for research-driven security selection in the fund's areas of concentration, in both domestic and foreign markets."
Citigroup Global Markets Inc.; Merrill Lynch, Pierce, Fenner & Smith Incorporated and UBS Securities LLC were the fund's lead managers. A.G. Edwards and Sons, Inc.; Advest, Inc.; H&R Block Financial Advisors, Inc.; Ferris, Baker Watts, Incorporated; Janney Montgomery Scott LLC; Legg Mason Wood Walker, Incorporated; McDonald Investments Inc.; Oppenheimer & Co. Inc.; Quick & Reilly, Inc.; RBC Capital Markets Corporation; TD Waterhouse Investor Services, Inc.; Wedbush Morgan Securities Inc.; and Wells Fargo Securities, LLC served as the Fund's comanagers.
CALAMOS manages two other closed-end funds, the CALAMOS Convertible Opportunities and Income Fund (CHI) and CALAMOS Convertible and High Income Fund (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 investment advisor to open-end and closed-end funds. It offers high yield, equity, global, growth and income, convertible, and alternative investment strategies. Engaged in securities research and investing since 1977, the firm manages nearly $26.1 billion in assets as of Feb. 29, 2004.
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 will 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 will 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.
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