Gabelli Utility Trust Announces Rights Offering
The Board of Trustees of The Gabelli Utility Trust (NYSE: GUT) has approved a transferable rights offering. This initiative enables shareholders on the record date to acquire additional common shares through a rights mechanism. The offering will be conducted exclusively via a prospectus supplement and accompanying prospectus, which clarifies that this announcement is not an offer to sell or solicit the purchase of any Fund securities.
Key Terms of the Offering
Rights Allocation
For each common share held as of the record date, shareholders will receive one transferable right. The allocation of rights will be rounded up to the nearest number that is evenly divisible by five, which aims to enhance shareholder engagement and streamline the process of purchasing additional shares.
Subscription Details
To acquire one additional common share, shareholders must exercise five rights and pay a Subscription Price of $5.00 in cash. It's important to note that fractional shares will not be issued when exercising rights.
Over-subscription Privilege
Shareholders who fully exercise their Primary Subscription Rights will have the opportunity to benefit from an over-subscription privilege. This allows them to subscribe for any additional common shares that remain unclaimed during the Primary Subscription, subject to certain limitations and a pro-rata allotment provision. Rights purchased in the secondary market will not qualify for this over-subscription privilege.
Trading Schedule
The Rights are expected to begin trading on a 'when issued' basis on the New York Stock Exchange starting September 5, 2024. Common shares of the Fund are anticipated to start trading 'Ex-Rights' on the Exchange on September 6, 2024. Full trading for normal settlement of the Rights is projected to begin around September 12, 2024.
Sale and Expiration Details
Shareholders have the option to sell their Rights directly or submit them to Computershare Trust Company, N.A. for sale. The deadline to submit a sell request is October 14, 2024. The Offering itself will expire at 5:00 PM Eastern Time on October 21, 2024, unless the Fund decides to extend it further.
Communication and Additional Information
The Fund intends to mail subscription certificates and a prospectus supplement to shareholders of record starting September 11, 2024. Financial Advisors will promptly send out notices following this. For any questions regarding the Offering, shareholders can reach out to:
David Schachter at 914-921-5057.
Use of Proceeds
The funds raised from this offering may be used for various investment purposes that align with the Fund's investment objectives. Depending on market conditions at the time of closing, the proceeds could also be used to redeem preferred stock or repay outstanding notes.
About The Gabelli Utility Trust
The Gabelli Utility Trust is a diversified, closed-end management investment company with approximately $296 million in total net assets. Its main goal is to achieve long-term growth of capital and income by investing primarily in utility companies involved in the distribution of electricity, gas, and water. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
For more information:
David Schachter
(914) 921-5057
dschachter@gabelli.com
Frequently Asked Questions
What is the purpose of the rights offering?
The rights offering enables existing shareholders to purchase additional common shares at a favorable price, thereby enhancing their investment in the Gabelli Utility Trust.
How many rights will I receive?
Each shareholder will receive one right for every common share they hold as of the record date, with the total number of rights rounded up to the nearest number that is evenly divisible by five.
What is the Subscription Price to purchase additional shares?
The Subscription Price for acquiring one additional common share is $5.00, which requires the exercise of five rights.
When will the rights begin trading?
The Rights are expected to start trading on a 'when issued' basis on September 5, 2024, with regular trading anticipated to commence around September 12, 2024.
How can I sell my rights?
Shareholders can either sell their rights directly or submit them to the Rights Agent for sale before the specified deadlines.
