Gabelli Utility Trust Announces Rights Offering for Common Shares Record Date and Summary of Terms
20 March 2018 - 7:05AM
Business Wire
The Board of Trustees of The Gabelli Utility Trust (NYSE:GUT)
(the “Fund”) has approved a transferable rights offering which
would allow the Fund’s record date common shareholders to acquire
additional common shares (the “Offering”). The Offering to acquire
additional common shares will be made only by means of a
prospectus, and this announcement does not constitute an offer to
sell, or a solicitation of an offer to buy, any of the Fund’s
securities.
SUMMARY OF THE TERMS OF THE OFFERING
- Each shareholder will receive one
transferable right (the “Right”) for each common share held on the
record date March 29, 2018.
- Five Rights plus $5.50 (the
“Subscription Price”) will be required to purchase one additional
common share (the “Primary Subscription”). The purchase price will
be payable in cash.
- Record date shareholders who fully
exercise their Primary Subscription Rights will be eligible for an
over-subscription privilege entitling these shareholders to
subscribe, subject to certain limitations and a pro-rata allotment,
for any additional common shares not purchased pursuant to the
Primary Subscription. Rights acquired in the secondary market may
not participate in the over-subscription privilege.
- The Rights are expected to trade “when
issued” on the New York Stock Exchange beginning on March 27, 2018,
and the Fund’s common shares are expected to trade “Ex-Rights” on
the New York Stock Exchange beginning on March 28, 2018. The Rights
are expected to begin trading for normal settlement on the New York
Stock Exchange (NYSE:GUT RT) on or about April 3, 2018.
- The Offering expires at 5:00 PM Eastern
Time on May 15, 2018.
The Fund expects to mail subscription certificates evidencing
the Rights and a copy of the prospectus for this Offering to record
date shareholders beginning on April 2, 2018. Financial Advisors
will likely send notices to you shortly thereafter. Inquiries
regarding the Offering should be directed to the Fund at
800-GABELLI or 914-921-5070.
The Offering is made pursuant to the Fund’s effective shelf
registration statement on file with the Securities and Exchange
Commission.
Any common shares issued as a result of the Offering will not be
record date shares for the Fund’s monthly distribution to be paid
on May 23, 2018 and will not be entitled to receive such
distribution.
The information herein is not complete and is subject to
change. This document is not an offer to sell these
securities and is not soliciting an offer to buy these securities
in any jurisdiction where the offer or sale is not permitted.
This document is not an offering, which can only be made by a
final prospectus. Investors should consider the Fund’s
investment objective, risks, charges and expenses carefully before
investing. The base prospectus contains this and additional
information about the Fund and the prospectus supplement will
contain this and additional information about the Offering, and
should be read carefully before investing. For further
information regarding the Offering, or to obtain a prospectus
supplement and the accompanying prospectus, when available, please
contact the Fund at 800-GABELLI or 914-921-5070.
The Gabelli Utility Trust is a diversified, closed-end
management investment company with $316 million in total net assets
whose primary investment objective is long-term growth of capital
and income. The Fund invests primarily in utility companies
involved in (i) the generation or distribution of electricity, gas,
and water and (ii) telecommunications services or infrastructure
operations. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL).
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For The Gabelli Utility TrustDavid Schachter, 914-921-5070
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