Gabelli Equity Trust Announces Initial Closing of Private Placement of 4.25% Series M Cumulative Preferred Stock

Rhea-AI Summary

The Gabelli Equity Trust (NYSE:GAB) has announced the initial closing of a private placement for its 4.25% Series M Cumulative Preferred Stock. The proceeds will be used to redeem the Fund's 5.45% Series J Preferred Stock. The Series M Preferred is set to begin quarterly distributions on March 26, 2022, and it has a liquidation preference of $100 per share, with a non-callable period until March 26, 2027. Gabelli Equity Trust, managed by Gabelli Funds, LLC, has total net assets of $2.2 billion, focusing on long-term capital growth.

Positive

• Initial closing of Series M Preferred Stock expected to improve capital structure.
• Using proceeds to redeem higher-cost 5.45% Series J Preferred Stock, potentially reducing future financing costs.
• Quarterly distributions starting March 26, 2022, enhancing income for investors.

Negative

• The Series M Preferred is non-callable until March 26, 2027, limiting flexibility.
• Potential investor risks due to non-registration under securities laws.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Directors of The Gabelli Equity Trust (NYSE:GAB) (the “Fund”) is pleased to announce the initial closing of a private placement of shares of 4.25% Series M Cumulative Preferred Stock (“Series M Preferred”).

The Fund expects to use the proceeds from the offering to redeem the Fund’s outstanding 5.45% Series J Cumulative Preferred Stock.

The Series M Preferred is non-callable until March 26, 2027, and has a liquidation preference of $100 per share. Distributions are scheduled to be paid quarterly beginning on March 26, 2022.

This press release is not an offering of, or a solicitation to purchase, the Series M Preferred. The Series M Preferred have not been registered under the Securities Act of 1933 or any state securities laws.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing in the Fund. For more information regarding this and other information about the Fund, call:

Molly Marion		Laurissa Martire		Bethany Uhlein		Paul Swirbul
914-921-5681		914-921-5399		914-921-5546		914-921-5496

About The Gabelli Equity Trust

The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company with $2.2 billion in total net assets whose primary investment objective is long-term growth of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE – GAB
CUSIP – 362397101

View source version on businesswire.com: https://www.businesswire.com/news/home/20211217005561/en/

Investor Information:

Paul Swirbul

V.P., Private Wealth

914-921-5496

pswirbul@gabelli.com

Source: The Gabelli Equity Trust

FAQ

What is the purpose of Gabelli Equity Trust's recent private placement of Series M Preferred Stock?

The proceeds from the Series M Preferred Stock placement will be used to redeem the 5.45% Series J Preferred Stock.

When will distributions for the Series M Preferred Stock begin?

Distributions for the Series M Preferred Stock will start on March 26, 2022.

What is the liquidation preference for the Series M Preferred Stock?

The Series M Preferred Stock has a liquidation preference of $100 per share.

What is the total net asset value of The Gabelli Equity Trust?

The Gabelli Equity Trust has total net assets of $2.2 billion.