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 million shares of 5.00% Series K Cumulative Preferred Stock (“Series K Preferred”) valued at $100 million. The offering is expected to close on Monday, December 16, 2019, subject to customary closing conditions.
The Fund expects to use a portion of the proceeds from the offering to redeem the Fund’s outstanding Series D Cumulative Preferred Stock.
The Series K Preferred is perpetual, non-callable for five years, and will be issued with a liquidation preference of $25 per share. Distributions are scheduled to be paid quarterly beginning on March 26, 2020. Shares of the Series K Preferred are expected to commence trading on the New York Stock Exchange under the symbol “GAB Pr K” within thirty days of the date of issuance.
The Board of Directors would like to thank all participants in the offering, which was led by Morgan Stanley & Co. LLC and also included UBS Securities LLC and G.research, LLC.
The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company with approximately $1.9 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 Fund’s prospectus supplement relating to the Series K Preferred and the Fund’s base prospectus contain this and additional information about The Gabelli Equity Trust Inc. and the Series K Preferred, and should be read carefully before investing. Visit www.gabelli.com for more information about the Fund.