Calamos Closed-End Funds (NASDAQ: CHI, CHY, CSQ, CHW, CGO and CCD) Announce Private Placements Totaling $248.25 Million of Mandatory Redeemable Preferred Shares
Calamos Investments' six closed-end funds (CHI, CHY, CSQ, CHW, CGO, CCD) issued $248.25M in mandatory redeemable preferred shares. KBRA rated them 'AA-'. Shares pay monthly dividends (6.19% and 6.03%) and were placed privately with institutional investors. Nomura and UBS acted as co-placement agents.
How this was made
The 30-second read
Why it matters
The issuance adds leverage and may affect each fund's discount/premium and NAV dynamics.
Market read
Primary disclosure of a sizable capital raise for multiple closed‑end funds, relevant to fund investors and market makers.
What to watch
Potential tax advantages of mandatory redeemable preferred shares for investors.
Background
Calamos Investments issued $248.25M of mandatory redeemable preferred shares across six of its NASDAQ‑listed closed‑end funds.
Ticker impact
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CHI.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CHY.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CSQ.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CHW.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CGO.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Calamos announced a $248.25M private placement of mandatory redeemable preferred shares for CCD.
Slight downward pressure on NAV as new preferred shares add leverage.
New capital raise may affect discount/premium dynamics.
Market effects
Closed‑end fund sector may see increased leverage risk perception.
U.S. equity markets, particularly fund‑focused investors, may adjust valuations.
Limited to investors in U.S. listed closed‑end funds.
Counterpoint
The capital raise could improve fund liquidity and support future distribution growth.
Key entities
- Asset ManagerCalamos Investments
Issuer of the preferred shares.
- Placement AgentNomura Securities International
Co‑placement agent for the offering.
- Placement AgentUBS Securities LLC
Co‑placement agent for the offering.
