The GDL Fund Announces the Placement of $35 Million of Series E Cumulative Term Preferred Shares

Rhea-AI Summary

The GDL Fund (NYSE:GDL) has announced the issuance of 3,500,000 Series E Cumulative Term Preferred Shares with a liquidation value of $10 each, totaling $35 million. These shares have a mandatory redemption date of March 26, 2025, and are callable starting March 26, 2024. Distributions will be 4.00% until March 26, 2023, and 4.25% thereafter, paid quarterly from June 26, 2022. The Fund, managed by Gabelli Funds, LLC, aims for absolute returns while managing risk, with total net assets of $212 million.

Positive

• Issuance of 3,500,000 Series E Preferred Shares increases capital by $35 million.
• Distributions increase from 4.00% to 4.25% post March 2023, enhancing income for investors.
• Managed by Gabelli Funds, LLC, ensuring professional oversight.

Negative

• Mandatory redemption date may pose liquidity risk for investors.
• Callable feature could result in early redemption and loss of future income.

RYE, N.Y.--(BUSINESS WIRE)-- The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) is pleased to announce the issuance of 3,500,000 Series E Cumulative Term Preferred Shares (“Series E Preferred”) with a liquidation value of $10 per share and an aggregate liquidation value of $35 million.

The Series E Preferred has a mandatory redemption date of March 26, 2025, is puttable on March 26, 2023 and March 26, 2024, and is callable on March 26, 2024. Distributions are 4.00% until March 26, 2023, 4.25% from March 26, 2023 to March 26, 2025, and are scheduled to be paid quarterly beginning on June 26, 2022.

The Board of Trustees would like to thank all participants in the offering.

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

Laurissa Martire
(914) 921-5399

About The GDL Fund

The GDL Fund is a diversified, closed-end management investment company with $212 million in total net assets whose investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).

NYSE – GDL
CUSIP – 361570104

View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005688/en/

Laurissa Martire

(914) 921-5399

Source: The GDL Fund

FAQ

What is the GDL Fund's recent announcement regarding Series E Preferred Shares?

The GDL Fund announced the issuance of 3,500,000 Series E Cumulative Term Preferred Shares, totaling $35 million in capital.

What are the distribution rates for the Series E Preferred Shares of GDL?

Distributions are 4.00% until March 26, 2023, and increase to 4.25% until March 26, 2025.

When is the mandatory redemption date for GDL's Series E Preferred Shares?

The mandatory redemption date for the Series E Preferred Shares is March 26, 2025.

What investment objectives does the GDL Fund aim to achieve?

The GDL Fund aims to achieve absolute returns across various market conditions with managed risk.

Who manages the GDL Fund?

The GDL Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).