Clough Capital Partners, LP Announces Intent to Redeem Auction Market Preferred Shares
Published April 10th, 2008
BOSTON -Clough Capital Partners, LP announced today that all three closed-end mutual funds that it manages intends to redeem all outstanding shares of Auction Market Preferred Shares (the “AMPS”), at par. The three funds are the Clough Global Allocation Fund (AMEX: GLV), the Clough Global Equity Fund (AMEX: GLQ) and the Clough Global Opportunities Fund (AMEX: GLO)(collectively, the “Funds”). Each Fund has obtained overnight collateralized financing from a financial institution to provide new funding to redeem the AMPS and provide up to 33% leverage to the Funds going forward. Each of the Fund’s Board of Trustees has approved the refinancing which is expected to lower the costs of leverage for the Funds.
Chuck Clough, CEO of Clough Capital Partners, commented, “Holders of the AMPS have been unable to access liquidity to their investments since the auction markets began failing last quarter. The liquidity issues in the auction rate market necessitated taking diligent action to seek alternative financing options for our Funds. We are pleased to be able to announce that we have a solution that we believe meets the needs of both common and preferred shareholders.”
The Funds expect to redeem in full their outstanding AMPS, subject to the new financing arrangements and satisfying notice and other requirements that apply to AMPS redemptions. Information relating to the specific redemption process and timeframes will be released by the Funds shortly.
More information on the Funds can be found at www.cloughglobal.com
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