Gabelli Equity Trust Announces Redemption of 5.45% Series J Cumulative Preferred Stock and Ongoing Closing of Private Placement of 4.25% Series M Cumulative Preferred Stock

Rhea-AI Summary

The Gabelli Equity Trust (NYSE: GAB) announced the redemption of its 5.45% Series J Cumulative Preferred Stock, effective January 31, 2022. Investors will receive $25.132465 per share, which includes accumulated dividends. This stock will no longer be considered outstanding post-redemption. Additionally, the Fund is conducting a private placement for its new 4.25% Series M Cumulative Preferred Stock to finance this redemption. As of now, the Gabelli Equity Trust manages approximately $2.3 billion in net assets, focusing on long-term capital growth.

Positive

• Redemption of Series J Preferred aligns with financial strategy.
• Introduction of Series M Preferred may attract new investment.

Negative

• Reduction in dividend payments with Series J Preferred redemption.

RYE, NY--(BUSINESS WIRE)-- The Board of Directors (the “Board”) of The Gabelli Equity Trust (NYSE: GAB) (the “Fund”) authorized the redemption of all of its 5.45% Series J Cumulative Preferred Stock (the “Series J Preferred”). The redemption date is January 31, 2022 (the “Redemption Date”), and the redemption price is $25.132465 (the “Redemption Price”) per Series J Preferred, which is equal to the liquidation preference of $25.00 per share plus $0.132465 per share representing accumulated and unpaid dividends and distributions to the Redemption Date.

Beginning on the Redemption Date, the Series J Preferred will no longer be deemed outstanding, dividends will cease to accumulate and all the rights of the holders of the Series J Preferred shares will cease with respect to the Series J Preferred, except the right to receive the Redemption Price.

The Board also is pleased to announce an ongoing 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 Series M Preferred to redeem the Fund’s outstanding 5.45% Series J Cumulative Preferred Stock.

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.

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	914-921-5084

About The Gabelli Equity Trust

The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company with $2.3 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220106005752/en/

Investor Information::

Paul Swirbul

V.P., Private Wealth

914-921-5084

pswirbul@gabelli.com

Source: The Gabelli Equity Trust Inc.

FAQ

What is the redemption date for Gabelli Equity Trust's Series J Preferred Stock?

The redemption date for Gabelli Equity Trust's Series J Preferred Stock is January 31, 2022.

What is the redemption price for Series J Preferred Stock of Gabelli Equity Trust?

The redemption price for Series J Preferred Stock is $25.132465 per share.

What will happen to the Series J Preferred shares after redemption?

After redemption, the Series J Preferred shares will no longer be outstanding, and dividends will cease to accumulate.

What is the purpose of the private placement for Series M Preferred Stock?

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

How much in total net assets does Gabelli Equity Trust manage?

Gabelli Equity Trust manages approximately $2.3 billion in total net assets.