Gabelli Utility Trust Rights Offering Concludes Raising $58 Million

Rhea-AI Summary

The Gabelli Utility Trust (NYSE: GUT) has successfully concluded its transferable rights offering, raising $58,120,545 in gross proceeds. The Fund will issue 11,624,109 common shares as a result of the offering. Rights holders were able to purchase common shares by submitting five Rights and $5.00 per share. The offering expired on October 21, 2024, and new common shares will be issued around October 25, 2024. These new shares will be eligible for the Fund's monthly distribution on November 21, 2024, but not for the October 24, 2024 distribution. Over-subscription requests will be allocated in full among fully exercising record date shareholders, subject to Board approval.

Positive

• Successful completion of rights offering, raising $58,120,545 in gross proceeds
• Issuance of 11,624,109 new common shares
• Full allocation of over-subscription shares to record date shareholders who fully exercised rights (subject to approval)
• New shares eligible for November 21, 2024 monthly distribution

Negative

• Potential dilution of existing shareholders due to issuance of new common shares
• New shares not eligible for October 24, 2024 monthly distribution

Insights

Financial Analyst

The successful completion of Gabelli Utility Trust's rights offering is a significant financial event, raising $58 million in gross proceeds. This capital infusion strengthens the Fund's financial position and provides additional resources for potential investments or other strategic initiatives.

Key points to consider:

• The Fund will issue 11,624,109 new common shares, expanding its equity base.
• The subscription price of $5.00 per share suggests a slight discount to market price, incentivizing participation.
• Over-subscription requests indicate strong investor interest, potentially reflecting confidence in the Fund's management and strategy.
• New shares will be eligible for the November distribution, aligning interests with existing shareholders.

While this capital raise is positive for the Fund's liquidity and investment capacity, investors should monitor how management deploys this capital to generate returns. The impact on net asset value (NAV) per share and distribution sustainability will be important factors to watch in the coming quarters.

RYE, New York, Oct. 22, 2024 (GLOBE NEWSWIRE) -- The Gabelli Utility Trust (NYSE: GUT) (the “Fund”) is pleased to announce the successful completion of its transferable rights offering (the “Offering” or “Offer”). Preliminary results indicate that the Fund will issue 11,624,109 common shares, for gross proceeds to the Fund of $58,120,545 (including over-subscription requests and notices of guaranteed delivery).

Pursuant to the Offering, the Fund issued one transferable right (a “Right”) for each common share of the Fund held by shareholders of record as of September 9, 2024 (“record date shareholders”). Holders of Rights were entitled to purchase common shares by submitting five Rights and $5.00 for each share to be purchased (the subscription price). The Offering expired at 5:00 PM Eastern Time on October 21, 2024 and the Rights no longer trade on the New York Stock Exchange.

Subject to approval of the over-subscription privilege by the Board of Trustees’ pricing committee, the over-subscription shares will be allocated in full among those fully exercising record date shareholders who over-subscribed in the Offering.

The new common shares subscribed for will be issued on or about October 25, 2024.

Any common shares issued as a result of the Offering will be eligible for the Fund’s monthly distribution to be paid on November 21, 2024 to shareholders of record on November 14, 2024 but will not be record date shares for the Fund’s monthly distribution to be paid on October 24, 2024 and will not be entitled to receive such distribution.

We thank all our subscribing shareholders as well as the full service brokers and financial advisers who assisted our shareholders throughout the Offering.

The information herein is not complete and is subject to change. This document is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a final prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. The base prospectus contains this and additional information about the Fund and the prospectus supplement contains this and additional information about the Offering. For further information regarding the Offering, or to obtain a prospectus supplement and the accompanying prospectus, please contact the Fund at 800-GABELLI or 914-921-5070.

About The Gabelli Utility Trust

The Gabelli Utility Trust is a diversified, closed-end management investment company with $362 million in total net assets, after giving effect to the Offering and assuming the over-subscription privilege is exercised, whose primary investment objective is to seek long-term growth of capital and income by investing primarily in utility companies involved in the generation and distribution of electricity, gas, and water. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).

NYSE – GUT
CUSIP – 36240A101

For information:
David Schachter
(914) 921-5057

Investor Relations Contact:
David Schachter
(914) 921-5057
dschachter@gabelli.com

FAQ

How much did Gabelli Utility Trust (GUT) raise in its recent rights offering?

Gabelli Utility Trust (GUT) raised $58,120,545 in gross proceeds from its recent transferable rights offering.

How many new common shares will GUT issue as a result of the rights offering?

GUT will issue 11,624,109 new common shares as a result of the rights offering.

When did the Gabelli Utility Trust (GUT) rights offering expire?

The Gabelli Utility Trust (GUT) rights offering expired on October 21, 2024, at 5:00 PM Eastern Time.

When will the new common shares from GUT's rights offering be issued?

The new common shares from GUT's rights offering are expected to be issued on or about October 25, 2024.