RYE, N.Y. -- (Business Wire)
The Board of Directors of The Gabelli Equity Trust Inc. (NYSE:GAB) (the
“Fund”) is pleased to announce the completion of an offering of 4.2
million shares of 5.00% Series H Cumulative Preferred Stock (the “Series
H Preferred”) valued at $105 million. The offering is expected to close
on Friday, September 28, 2012, subject to customary closing conditions.
The Fund expects to use the proceeds from the offering to redeem the
remaining outstanding shares of the Fund’s 6.20% Series F Cumulative
Preferred Stock (the “Series F Preferred”). Amounts in excess of the
redemption amount of the Series F Preferred may be used to call other
existing series of preferred stock of the Fund or for investment
purposes consistent with the Fund’s investment objectives.
The Series H Preferred is perpetual, non-callable for five years, and
will be issued at $25 per share. Distributions are scheduled to be paid
quarterly beginning on December 26, 2012. Shares of the Series H
Preferred are expected to commence trading on the New York Stock
Exchange under the symbol “GAB Pr H” within thirty days of the date of
The Board of Directors would like to thank all participants in the
offering, which was led by BofA Merrill Lynch.
The Gabelli Equity Trust Inc. is a non-diversified, closed-end
management investment company with $1.4 billion in net assets whose
primary investment objective is to achieve long-term growth of capital
by investing primarily in a portfolio of equity securities consisting of
common stock, preferred stock, convertible or exchangeable securities,
and warrants and rights to purchase such securities. Income is a
secondary investment objective. The Fund is managed by Gabelli Funds,
LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a
publicly traded NYSE listed company.
A registration statement relating to these securities has been filed
with the Securities and Exchange Commission and is effective. This press
release is not an offering, which can only be made by a prospectus.
Investors should consider the Fund’s investment objectives, risks,
charges and expenses carefully before investing. The prospectus
supplement and related base prospectus relating to the Series H
Preferred contain this and additional information about The Gabelli
Equity Trust Inc. and the Series H Preferred, and should be read
carefully before investing.
The Gabelli Equity Trust Inc.
Molly Marion/Carter Austin,
Source: The Gabelli Equity Trust Inc.