Gabelli Dividend offers to exchange three preferred series

By Taylor Fox

New York, March 17 – Gabelli Dividend & Income Trust began an exchange offer for its series B auction market preferred shares, series C auction market preferred shares and series E auction rate preferred shares, according to a news release.

Through the offer, owners of the auction rate preferreds may exchange their shares at the exchange ratio of 0.96 of each newly issued series J preferred term share, par value $0.001 and liquidation preference of $25,000 per share, for each auction rate preferred share validly tendered.

In lieu of any fractional shares of series J preferreds, holders of auction rate preferreds following the consummation of the exchange offer will receive a cash amount, without interest, equal to 96% of the liquidation preference of any fractional shares remaining.

The series J preferreds will have a mandatory redemption date of March 26, 2028 and will pay dividends quarterly at an annualized rate of 1.7% for the first three years and 4.5% after that.

The series J preferreds are callable by the fund on March 26, 2024 at the liquidation preference plus dividends.

The offer expires April 14.

Gabelli is a Rye, N.Y.-based investment firm.

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