Gabelli Utility Trust Announces Rights Offering Details
![Gabelli Utility Trust Announces Rights Offering Details](https://investorshangout.com/images/blog/investors-hangout-newswire.jpg)
Gabelli Utility Trust Announces Rights Offering
The Board of Trustees of The Gabelli Utility Trust (NYSE: GUT) has approved a transferable rights offering. This offering allows shareholders on the record date to acquire additional common shares through a rights mechanism. The offering will be conducted solely via a prospectus supplement and accompanying prospectus, ensuring that this announcement does not serve as an offer to sell or solicit a purchase of any Fund securities.
Key Terms of the Offering
Rights Allocation
Each shareholder will receive one transferable right for each common share held as of the record date. The rights allocation will be rounded up to the nearest number of rights that is evenly divisible by five, enhancing shareholder engagement and facilitating the process of purchasing additional shares.
Subscription Details
To purchase one additional common share, shareholders must exercise five rights along with a Subscription Price of $5.00. The purchase must be made in cash, and it is important to note that fractional shares will not be issued upon the exercise of rights.
Over-subscription Privilege
Shareholders who fully exercise their Primary Subscription Rights will be able to take advantage of an over-subscription privilege. This allows them to subscribe for any additional common shares not acquired during the Primary Subscription, subject to specific limitations and a pro-rata allotment provision. Rights acquired in the secondary market will not be eligible for this over-subscription privilege.
Trading Schedule
The Rights are anticipated to begin trading on a 'when issued' basis on the New York Stock Exchange starting September 5, 2024. Common shares of the Fund are expected to commence trading 'Ex-Rights' on the Exchange on September 6, 2024. Full trading for normal settlement of the Rights is projected to commence around September 12, 2024.
Sale and Expiration Details
Shareholders can either sell their Rights directly or submit them to Computershare Trust Company, N.A. for sale. The last day 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 extended further by the Fund.
Communication and Additional Information
The Fund plans to mail subscription certificates and a prospectus supplement to record date shareholders starting September 11, 2024. Financial Advisors will send notices promptly thereafter. For any inquiries regarding the Offering, shareholders can contact:
David Schachter at 914-921-5057.
Use of Proceeds
The proceeds from this offering may be utilized for various investment purposes in alignment with the Fund's investment objectives. Depending on market conditions at the time of closing, the proceeds could also be employed to redeem preferred stock or repay outstanding notes.
About The Gabelli Utility Trust
The Gabelli Utility Trust operates as a diversified, closed-end management investment company with approximately $296 million in total net assets. Its primary objective is to achieve long-term growth of capital and income through investments mainly in utility companies involved in electricity, gas, and water distribution. 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 allows existing shareholders to acquire additional common shares at a preferential price, enhancing their investment in the Gabelli Utility Trust.
How many rights will I receive?
Each shareholder will receive one right for each common share they hold as of the record date, with the number of rights rounded up to the nearest number evenly divisible by five.
What is the Subscription Price to purchase additional shares?
The Subscription Price to purchase one additional common share is $5.00, requiring the exercise of five rights.
When will the rights begin trading?
The Rights are expected to begin trading on a 'when issued' basis on September 5, 2024, with regular trading expected to begin 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 provided deadlines.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Related Articles
- Bekaert Announces Liquidity Agreement Update
- PayPoint plc Announces Share Buyback Details
- Equinor ASA Announces Dividend for First Quarter 2024
- Sampo plc Details Share Buybacks Overview
- BW Offshore Announces Q2 2024 Presentation Details
- Burning Rock Biotech Announces Q2 2024 Financial Results
- Timbercreek Financial Announces Monthly Dividend Payment
- Titanium Transportation Group Announces Quarterly Dividend
- TransAlta Announces Right to Convert Series G Preferred Shares
- BrightSpring Health to Attend Global Healthcare Conference