Company: CHY
Filing Date: 2025-02-24
Form Type: 424B5
Source: 0001104659-25-016491
Chunk: 71

Company: CALAMOS CONVERTIBLE & HIGH INCOME FUND
Filing Date: 2025-02-24
Form: 424B5
Chunk 71
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 concentration limit imposed by the Fund which precludes any single counterparty from constituting 25% or more of the Fund’s securities lending transactions then outstanding. The Fund has the right to limit or to prohibit altogether securities lending with otherwise eligible counterparties, subject to the potential for an increase in the Fund’s borrowing cost of either .25% or .45% per annum if such limits or prohibitions disqualify multiple counterparties which account for more than 25% or 50%, respectively, of the Fund’s recent securities lending transactions. Cash collateral received by SSB on behalf of the Fund is deposited into a custodial account in the name of the Fund before being treated as refinancing a portion of the amounts borrowed under the SSB Agreement. The interest paid by the Fund under the SSB Agreement is not impacted by whether the funding is through an advance by SSB or by receipt of collateral for securities lending. Under the terms of the SSB Agreement, the Fund is required to return the value of the collateral to the borrower at the termination of the selected securities loan(s). The Fund does not use affiliated agents in managing its lending program. The Fund continues to be entitled to receive the equivalent of the interest or dividends paid by the issuer on the securities loaned as well as the benefit of an increase and the detriment of any decrease in the market value of the securities loaned and would also receive compensation based on investment of the collateral, but bears the risk of loss on any collateral so invested. The Fund would not, however, have the right to vote any securities having voting rights during the existence of the loan, but could seek to call the loan in anticipation of an important vote to be taken among holders of the securities or of the giving or withholding of consent on a material matter affecting the investment. As with other extensions of credit, there are risks of delay in recovery or even loss of rights in the collateral should the borrower of the securities fail financially. The Fund remains liable for the return of the pledged collateral or cash of an equivalent value. At no time would the value of the securities loaned exceed 33 1/3% of the value of the Fund’s managed assets. The securities lending arrangement with SSB involves characteristics common in arm’s length relationships in which one party may benefit at the expense of the other party. See “Description of Securities” for more information on lending of portfolio securities. Portfolio Turnover.Although the Fund does not purchase securities with a view to rapid turnover, there are no limitations on the length of time