Gabelli Go Anywhere Trust Announces Common Share Tender Offer and Redemption of Preferred Shares
The Gabelli Go Anywhere Trust (NYSE: GGO) has announced a tender offer to buy back its common shares at 98% of the net asset value. The offer is set to expire on September 24, 2021, with a shareholder distribution of $0.05 per share scheduled for September 23, 2021. Additionally, the Fund will redeem its Series A Preferred Shares at $40 each on September 27, 2021, alongside a $0.50 distribution and accumulated dividends. The Fund's distributions in 2021 are expected to consist of approximately 2% from net investment income and 98% from net capital gains.
- Tender offer to repurchase shares at 98% of net asset value may support share price.
- Distribution of $0.05 per common share enhances shareholder returns.
- Redemption of Series A Preferred Shares stabilizes capital structure.
- Dependence on capital gains for distributions could indicate insufficient operational income.
- Shareholders might face tax implications due to capital gains and Medicare surcharge.
As designed in the Initial Public Offering of The Gabelli Go Anywhere Trust (NYSE American: GGO) (the “Fund”) September 2, 2016, the Board of Trustees (the “Board of Trustees”) has authorized an issuer tender offer to purchase for cash all of the Fund’s issued and outstanding common shares (the “Shares”). The price was set at
Also pursuant to the initial offering documents, the Fund’s Board of Trustees initiated the provision to redeem all outstanding Series A Cumulative Puttable and Callable Preferred Shares (the “Series A Preferred Shares”), at the liquidation preference of
All or part of the distribution may be treated as long-term capital gain or qualified dividend income (or a combination of both) for individuals, each subject to the maximum federal income tax rate for long term capital gains, which is currently
If the Fund does not generate sufficient earnings (dividends and interest income, less expenses, and realized net capital gain) equal to or in excess of the aggregate distributions paid by the Fund in a given year, then the amount distributed in excess of the Fund’s earnings would be deemed a return of capital. Since this would be considered a return of a portion of a shareholder’s original investment, it is generally not taxable and would be treated as a reduction in the shareholder’s cost basis.
Long-term capital gains, qualified dividend income, investment company taxable income, and return of capital, if any, will be allocated on a pro-rata basis to all distributions to common shareholders for the year. Based on the accounting records of the Fund currently available, each of the distributions paid to common and preferred shareholders in 2021 would include approximately
This press release is neither an offer to purchase nor a solicitation of an offer to sell any securities of the Fund. The Offer is being made only pursuant to the Tender Offer Statement on Schedule TO, including an Offer to Purchase, Letter of Transmittal and related materials that the Fund filed with the Securities and Exchange Commission (“SEC”) on August 3, 2021. Shareholders of the Fund are urged to carefully read the Tender Offer Statement, Offer to Purchase, Letter of Transmittal and related materials filed with the SEC because they contain important information, including the various terms of, and conditions to, the Offer. Investors may obtain free copies of the Tender Offer Statement and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, free copies of the Tender Offer Statement and other documents filed with the SEC may also be obtained by directing a request to: Gabelli Funds, or by calling (800) 422-3554.
Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. More information regarding the Fund’s distribution policy and other information about the Fund is available by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.
About Gabelli Go Anywhere Trust
The Gabelli Go Anywhere Trust is a non-diversified, closed-end management investment company whose primary investment objective is total return, consisting of capital appreciation and current income. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).
NYSE American: GGO
CUSIP – 36250J109
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FAQ
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