Gabelli Healthcare & WellnessRx Trust Announces the Issuance of $40 Million of 4.00% Series C Cumulative Preferred Shares

Rhea-AI Summary

The Gabelli Healthcare & Wellness Trust (NYSE:GRX) has announced a private placement of 2 million Series C Cumulative Preferred Shares, totaling $40 million. The proceeds will be used to redeem its existing Series B Preferred Shares and for investment purposes aligned with the Fund's objectives. The Series C shares will offer a 4.00% annual distribution, commencing on March 26, 2021, and are non-callable for three years. They may be redeemed on December 18, 2024, with a put-back option prior to December 2023.

Positive

• Issuance of 2 million Series C Preferred Shares totaling $40 million.
• Proceeds will redeem higher interest Series B Preferred Shares, potentially reducing expenses.
• Series C Preferred offers a competitive 4.00% distribution rate.
• Non-callable for three years, providing stability for investors.

Negative

• None.

The Board of Trustees of The Gabelli Healthcare & Wellness^Rx Trust (NYSE:GRX) (the “Fund”) is pleased to announce the issuance of two million 4.00% Series C Cumulative Preferred Shares (“Series C Preferred”) with an aggregate liquidation value of $40 million in a private placement.

The Fund expects to use the net proceeds from the offering to redeem the Fund’s outstanding 5.875% Series B Cumulative Preferred Shares as well as for investment purposes consistent with the Fund’s investment objectives.

The Series C Preferred will pay distributions quarterly at an annual rate of 4.00% of the $20.00 per share liquidation preference, beginning on March 26, 2021.

The Series C Preferred may be put back to the Fund during each 30-day period prior to December 26, 2022 and December 26, 2023 at the liquidation preference, plus any accumulated and unpaid dividends.

The Series C Preferred is non-callable for three years, and is subject to mandatory redemption by the Fund on December 18, 2024.

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. More information regarding this and other information about the Fund is available by calling 800-GABELLI (800-422-3554) or visiting www.gabelli.com.

About The Gabelli Healthcare & Wellness^Rx Trust
The Gabelli Healthcare & Wellness^Rx Trust is a diversified, closed-end management investment company with $318 million 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. (NYSE:GBL).

NYSE: GRX
CUSIP – 36246K103

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FAQ

What is the issuance amount of the Series C Cumulative Preferred Shares by GRX?

The Gabelli Healthcare & Wellness Trust issued 2 million Series C Cumulative Preferred Shares with an aggregate value of $40 million.

What will be done with the proceeds from the Series C Preferred Shares offering?

The proceeds will be used to redeem the Fund's outstanding 5.875% Series B Cumulative Preferred Shares and for investment purposes.

When do the distributions for the Series C Preferred Shares start?

Distributions for the Series C Preferred Shares will begin on March 26, 2021.

What is the redemption date for the Series C Preferred Shares?

The Series C Preferred Shares are subject to mandatory redemption by the Fund on December 18, 2024.

Are the Series C Preferred Shares callable?

The Series C Preferred Shares are non-callable for three years.