Gabelli Utility Trust Rights Offering Oversubscribed by $68 Million Raising $50 Million

Rhea-AI Summary

The Gabelli Utility Trust (NYSE:GUT) announced the completion of its over-subscribed transferable rights offering, issuing 9,133,529 common shares for gross proceeds of $50,234,410. Shareholders could purchase shares at $5.50 each, with total subscriptions reaching approximately $118 million, or 236% of the shares available. New shares will be issued around April 25, 2022, and will qualify for the Fund's monthly distribution on May 23, 2022, but not for the April distribution. The Fund's total net assets will be approximately $397 million post-offering.

Positive

• Successfully completed an over-subscribed rights offering, raising $50,234,410.
• Total subscriptions reached approximately $118 million, indicating strong investor interest.
• Total net assets expected to be around $397 million after the offering.

Negative

• None.

RYE, N.Y.--(BUSINESS WIRE)-- The Gabelli Utility Trust (NYSE:GUT) (the “Fund”) is pleased to announce the successful completion of its transferable rights offering (the “Offering” or “Offer”) in which the Fund will issue 9,133,529 common shares, for gross proceeds totaling $50,234,410, assuming the over-subscription privilege is exercised.

The Offering was over-subscribed. 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 March 10, 2022 (“record date shareholders”). Holders of Rights were entitled to purchase common shares by submitting seven Rights and $5.50 for each share to be purchased (the subscription price). The Offering expired at 5:00 PM Eastern Time on April 19, 2022 and the Rights no longer trade on the New York Stock Exchange.

Preliminary results indicate that the Fund received total subscriptions of approximately $118 million (including over-subscription requests and notices of guaranteed delivery) for 236% of the common shares available to be issued pursuant to the primary subscription. Approximately 68% of the shares were subscribed for in the primary subscription and the remaining shares were subscribed for pursuant to the over-subscription privilege.

The over-subscription requests exceeded the over-subscription shares available. As a result, subject to approval of the over-subscription privilege by the Board of Trustees’ pricing committee, the available over-subscription shares will be allocated pro rata among those fully exercising record date shareholders who over-subscribed, based on the number of Rights originally issued to them by the Fund. The Fund will return to those investors that submitted over-subscription requests the full amount of their excess payments.

The new common shares subscribed for will be issued on or about April 25, 2022.

Any common shares issued as a result of the Offering will be eligible for the Fund’s monthly distribution to be paid on May 23, 2022 to shareholders of record on May 13, 2022 but will not be record date shares for the Fund’s monthly April distribution to be paid on April 22, 2022 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 $397 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. (NYSE:GBL).

NYSE – GUT
CUSIP – 36240A101

View source version on businesswire.com: https://www.businesswire.com/news/home/20220420005656/en/

For information:

David Schachter

(914) 921-5057

Source: The Gabelli Utility Trust

FAQ

What was the gross proceeds from The Gabelli Utility Trust's rights offering?

The gross proceeds from the offering totaled $50,234,410.

When will new shares from the offering be issued by The Gabelli Utility Trust?

The new shares will be issued on or about April 25, 2022.

What percentage of subscriptions were made in The Gabelli Utility Trust's primary subscription?

Approximately 68% of the shares were subscribed for in the primary subscription.

What is the subscription price for shares in The Gabelli Utility Trust's offering?

The subscription price was $5.50 per share.

When is the next distribution date for shareholders of The Gabelli Utility Trust?

The next distribution date is May 23, 2022, for shareholders of record on May 13, 2022.