By Tali David
Minneapolis, June 24 - Gabelli Global Utility & Income Trust's $70.72 million series A cumulative puttable and callable preferred shares have been admitted to trading on the New York Stock Exchange, according to a notice.
The preferreds began trading under the symbol "GLU PrA."
The fund offered the securities via a rights offering in which it sold 1,032,428 common shares and 1,032,428 shares of the new preferreds. Shareholders received one transferable right per common share and could exercise the rights for one common share and one preferred share by submitting three rights and $68.50, corresponding to $18.50 for the common share and $50 for the preferreds.
Dividends will be payable quarterly beginning June 26. The preferreds will have an annual dividend rate of 6% for the four dividend periods ending on or prior to June 26, 2014, then 3% for the next eight dividend periods ending on or prior to June 26, 2016. After that the preferreds will pay a dividend of 200 basis points over the yield on the 10-year Treasury note, with a floor of 3% and a cap of 5%.
The preferreds will be non-callable for five years from the date of issuance, unless the redemption is necessary in the judgment of the fund's board of trustees to maintain the current tax status.
Holders can put the preferreds on June 26, 2015 and June 26, 2018.
Gamco is a Rye, N.Y.-based non-diversified, closed-end management investment company.
| Issuer: | Gabelli Global Utility & Income Trust
|
| Securities: | Series A cumulative preferred stock
|
| Amount: | $70,721,318, or 1,032,428 shares
|
| Maturity: | Perpetual
|
| Dividend: | 6% through June 26, 2014, then 3% through June 24, 2016, then the 10-year Treasury yield plus 200 bps, with a floor of 3% and a cap of 5%
|
| Price: | Par of $50.00
|
| Call options: | After five years
|
| Put options: | On June 26, 2015, June 26, 2018
|
| Expected listing: | NYSE: GLU PrA
|
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