The Board of Trustees of The Gabelli Global Utility & Income Trust (NYSE
MKT:GLU) (the “Fund”) approved the issuance of additional common shares
and a new series of preferred shares through a rights offering to the
Fund’s existing common shareholders. Key aspects of the rights offering,
including the timing and the pricing, have yet to be determined and will
be announced at a later date.
The Board of Trustees believes a rights offering encourages long-term
investors to enhance their positions in the Fund. The proceeds from the
rights offering will be used for investment purposes. The Board of
Trustees reserves the right to cancel the rights offering.
Under the proposed rights offering, each shareholder would receive one
right for each share held on the record date. Three rights plus the
subscription price will be required to acquire one additional common
share and one newly issued preferred share. The rights may only be
exercised to purchase an equal number of common shares and preferred
shares and may not be exercised to purchase only common shares or
preferred shares or an unequal number of common shares and preferred
shares.
The rights are expected to be transferable and the Fund intends to apply
to list the rights for trading on an exchange, allowing non-subscribing
shareholders the option of selling their rights on the exchange or
through the transfer agent, generally at a low transaction cost.
Shareholders of record on the record date for the rights offering are
expected to be entitled to oversubscribe, subject to certain
limitations, for any shares not purchased pursuant to the primary
subscription rights.
Any rights offering will be made only by means of a prospectus and this
notice does not constitute an offer to sell any securities. The
information in this announcement is not complete and is subject to
change.
The Gabelli Global Utility & Income Trust is a non-diversified,
closed-end management investment company with $68 million in total net
assets whose investment objective is to seek a consistent level of
after-tax return for its investors with an emphasis on tax advantaged
dividend income. The Fund is managed by Gabelli Funds, LLC, a subsidiary
of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly traded NYSE
listed company.
