On 22 December 2008 Calamos Holdings LLC, a branch of Calamos Asset Management, reduced its outstanding indebtedness under its note purchase agreements from $525 million to $125 million.
Calamos Holdings and its existing note holders amended its note purchase agreements on 22 December 2008. In connection with such amendments, the parties amended and waived certain provisions of each note purchase agreement, and Calamos Holdings prepaid on a pro rata basis $150 million in aggregate principal amount of all outstanding notes, together with accrued interest and a contractual make-whole amount, all of which was paid on 22 December 2008.
Additionally, Calamos Holdings also prepaid on a pro rata basis $250 million in aggregate principal amount of the remaining outstanding notes, together with accrued interest but without the contractual make-whole amount. The $250 million prepayment was also paid on 22 December 2008.
“Our goal was to obtain adequate flexibility under our note purchase agreements, while also right-sizing our outstanding indebtedness with the needs of our business,” says John P. Calamos, chairman, CEO and co-chief investment officer, Calamos.
“We believe that in these turbulent markets, deleveraging and protecting our balance sheet makes sense, yet still provides us with capital to continue to grow our business, including continuing to invest in new and existing Calamos investment products.”
L.D.