NAPERVILLE, Ill., June 27, 2002 (PRIMEZONE) -- CALAMOS INVESTMENTS today announced the successful completion of its first closed-end fund offering, becoming manager of the largest closed-end convertible-bond fund. The CALAMOS Convertible Opportunities and Income Fund will trade on the New York Stock Exchange under the symbol CHI. Forty million shares at an initial price of $15 were purchased, totaling $600 million. Total common shares assets for the fund could reach $690 million, assuming full exercise of underwriters' over-allotments, which may not occur.
The lead underwriter of this offering was Merrill Lynch & Co., with the following co-managers: UBS Warburg, RBC Dain Rauscher, Legg Mason Wood Walker Inc., Wachovia Securities, Janney Montgomery Scott LLC, Advest, Inc., McDonald Investments, TD Waterhouse, Wedbush Morgan Securities, and Stephens Inc.
CALAMOS' successful entrance into the closed-end fund market is due to the firm's globally recognized position as a leader in convertible bond investing, with more than 25 years of experience in the asset class. Currently managing more than $11 billion in convertibles, equities, and high-yield securities, the firm has built a strong reputation in both the institutional and individual money management arenas, and can claim the longest tenured management of any convertible mutual fund, according to Morningstar.
The Fund will invest primarily in below-investment grade convertible and corporate bonds, pursuing total return through these securities' high levels of current income and potential capital appreciation. (Debt securities rated below investment grade are commonly referred to as "junk bonds" and are considered speculative with respect to the issuer's capacity to pay interest and repay principal.) Dividends will be paid monthly, following the fund's invest-up period. John P. Calamos, Sr., and Nick P. Calamos will lead the investment team's management of the Fund.
In discussing the initial public offering, John Calamos commented: "We at CALAMOS INVESTMENTS are pleased at the opportunity this offers investors, as we believe the fund will provide access to the sophisticated markets of below-investment grade convertibles and corporate bonds at an excellent time to hold such investments: At CALAMOS, we observe that an improving economy, positioned with low interest rates and low inflation, has historically benefited both convertible and high-yield performance."
John P. Calamos, Sr., Chairman, CEO/Chief Investment Officer, of CALAMOS INVESTMENTS, will ring the opening bell at the New York Stock Exchange on July 3 in recognition of the IPO.
About CALAMOS INVESTMENTS
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 a family of mutual funds. It offers equity, convertible growth, convertible, high yield, global/international and alternative investment strategies. The firm has experience in securities research and investing since 1977 and manages $11.3 billion in assets as of May 31, 2002.
More complete information about the fund, including risks, fees and expenses, may be obtained from your investment professional or by contacting CALAMOS FINANCIAL SERVICES, INC. at 800-582-6959. Read the prospectus carefully before investing or sending money.