Gabelli Utility Trust Rights Offering Oversubscribed Raising $43 Million

Rhea-AI Summary

The Gabelli Utility Trust (NYSE:GUT) has successfully completed its transferable rights offering, issuing 7,885,840 common shares and raising gross proceeds of $43,372,120. The offering was over-subscribed, with total subscriptions of approximately $72 million, equating to 167% of available shares. Approximately 64% of shares were subscribed in the primary round, with the rest in over-subscription. New shares will be issued around April 20, 2021, and will qualify for the Fund's May distribution.

Positive

• Raised $43,372,120 through the rights offering.
• Offering was over-subscribed with total subscriptions of approximately $72 million.
• 64% of shares were subscribed in the primary subscription.

Negative

• Over-subscription requests exceeded available shares, leading to pro rata allocation.

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 7,885,840 common shares, for gross proceeds totaling $43,372,120.

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 11, 2021 (“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 14, 2021 and the Rights no longer trade on the New York Stock Exchange.

Preliminary results indicate that the Fund received total subscriptions of approximately $72 million (including over-subscription requests and notices of guaranteed delivery) for 167% of the common shares available to be issued pursuant to the primary subscription. Approximately 64% 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, 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 20, 2021.

Any common shares issued as a result of the Offering will be eligible for the Fund’s monthly May distribution to be paid on May 21, 2021 to shareholders of record on May 14, 2021 but will not be record date shares for the Fund’s monthly April distribution to be paid on April 23, 2021 and will not be entitled to receive such April 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 will contain this and additional information about the Offering, and should be read carefully before investing. 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 $386 million in total net assets, after giving effect to the Offering, 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

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FAQ

What is the significance of the Gabelli Utility Trust's recent rights offering?

The rights offering raised $43,372,120 and was over-subscribed, indicating strong investor interest.

When will the new shares from the Gabelli Utility Trust's offering be issued?

The new common shares are expected to be issued on or about April 20, 2021.

How does the over-subscription work for the Gabelli Utility Trust?

Over-subscription requests exceeded available shares, and excess payments will be returned to investors.

What is the current net asset value of the Gabelli Utility Trust?

After the offering, the Gabelli Utility Trust has $386 million in total net assets.

Will new shares from the Gabelli Utility Trust qualify for upcoming distributions?

Yes, new shares will be eligible for the May distribution, but not for the April distribution.