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Gabelli Global Utility & Income Trust closes rights offering and raises USD70m gross.

M2 EQUITYBITES-June 20, 2013-Gabelli Global Utility & Income Trust closes rights offering and raises USD70m gross(C)2013 M2 COMMUNICATIONS

The Gabelli Global Utility & Income Trust (NYSE MKT:GLU), a non-diversified, closed-end management investment company, stated on Wednesday that it has completed its transferable rights offering where it issued 1,032,428 common shares and 1,032,428 newly issued series A cumulative puttable and callable preferred shares, with gross proceeds of USD70.7m.

Further, the company said it issued one transferable right for each of its common shares to shareholders of record as of 7 May 2013, pursuant to the offer and the rights holders can purchase one common share and one newly issued series A preferred share by submitting three rights and USD68.50, comprising of USD18.50 for a common share and USD50.00 for a series A preferred share.

Accordingly, total subscriptions together with over-subscription requests for over 1.8m common shares and series A preferred shares were received by the company, totaling about USD130m it said and after retaining about USD70m, the balance was returned to investors that submitted over-subscription requests. Therefore, about 63% of the shares issued were subscribed for in the primary subscription.

The remaining shares were allocated to shareholders of record who exercised their full primary subscription rights under the terms of the over-subscription privilege, pursuant to the offering. All of the new common and preferred shares subscribed for were issued on 19 June 2013, the company mentioned and added that the series A preferred shares will begin trading on the NYSE MKT on or about 24 June 2013.

Additionally, the company said that the series A preferred shares will pay quarterly distributions and have an annual dividend rate of 6.00% for the four dividend periods ending on or before 26 June 2014 and 3.00% for the subsequent eight dividend periods ending on or prior to 26 June 2016.

Finally, the series A preferred will be non-callable for five years from the date of issue, unless the company's board of trustees considers it necessary to redeem them during the 30-day period before each of 26 June 2015 and 26 June 2018, to maintain the fund's status as a regulated investment company.

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Publication:M2 EquityBites (EQB)
Date:Jun 20, 2013
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