Gabelli Equity Trust Announces Redemption of 5.45% Series J Cumulative Preferred Stock

Rhea-AI Summary

The Gabelli Equity Trust (NYSE: GAB) has announced the redemption of all Series J Cumulative Preferred Stock, effective January 31, 2022. The redemption price is $25.132465 per share, which includes accumulated dividends. After the redemption date, the Series J Preferred shares will no longer be outstanding, and dividends will cease to accumulate. The shares, rated 'A1' by Moody's, have an annual dividend rate of $1.3625 and were originally issued at $25.00 per share. Payments will be handled by Computershare Trust Company as the paying agent.

Positive

• Redemption of Series J Preferred shares may enhance the company’s financial position by reducing dividend obligations.
• The Series J Preferred shares have a solid credit rating of 'A1' by Moody's, indicating strong financial health.

Negative

• Redemption of preferred shares could impact investors reliant on dividend income.
• The total net assets of the fund are $2.2 billion, suggesting a relatively small capital base for significant future projects.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Directors 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.

Series J Preferred shares will be redeemed in accordance with the procedures of The Depository Trust Company (“DTC”). Payment to DTC for the Series J Preferred shares will be made by Computershare Trust Company, N.A., as paying agent for this redemption.

The Series J Preferred Shares, which trade on the New York Stock Exchange under the symbol “GAB Pr J”, are rated “A1” by Moody’s Investors Service and have an annual dividend rate of $1.3625 per share. The Series J Preferred Shares were issued on March 31, 2016 at $25 per share and pay distributions quarterly. The Series J Preferred are callable at any time, after proper notification is given, at the liquidation preference of $25.00 per share plus accumulated and unpaid dividends.

Questions relating to, and requests for copies of, the notice of redemption and the related materials should be directed to the Fund by calling:

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211217005523/en/

Investor Information:

Paul Swirbul

V.P., Private Wealth

914-921-5496

pswirbul@gabelli.com

Source: The Gabelli Equity Trust

FAQ

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

The redemption date is January 31, 2022.

What is the price at which Gabelli Equity Trust's Series J Preferred Stock is being redeemed?

The redemption price is $25.132465 per share.

What happens to the Series J Preferred Stock after the redemption date?

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

What is the annual dividend rate for Gabelli Equity Trust's Series J Preferred shares?

The annual dividend rate is $1.3625 per share.

How is the redemption of Gabelli Equity Trust's Series J Preferred shares being handled?

The redemption will be conducted according to the procedures of The Depository Trust Company, with Computershare Trust Company acting as the paying agent.