Gabelli Convertible & Income Securities Fund Announces Rights Offering for Shares of Common Stock Record Date & Summary of Te...
August 22 2018 - 4:05PM
Business Wire
The Board of Directors of The Gabelli Convertible and Income
Securities Fund (NYSE:GCV) (the “Fund”) has approved a transferable
rights offering which would allow the Fund’s record date common
shareholders to acquire additional shares of common stock (the
“Offering”). The Offering will be made only by means of a
prospectus, and this announcement does not constitute an offer to
sell, or a solicitation of an offer to buy, any of the Fund’s
securities.
SUMMARY OF THE TERMS OF THE OFFERING
- Each shareholder will receive one
transferable right (the “Right”) for each share of common stock
held on the record date (September 5, 2018).
- Three Rights plus $5.25 (the
“Subscription Price”) will be required to purchase one additional
share of common stock (the “Primary Subscription”). The purchase
price will be payable in cash.
- Record date shareholders who fully
exercise their Primary Subscription Rights will be eligible for an
over-subscription privilege entitling these shareholders to
subscribe, subject to certain limitations and a pro-rata allotment,
for any additional shares of common stock not purchased pursuant to
the Primary Subscription. Rights acquired in the secondary market
may not participate in the over-subscription privilege.
- The Rights are expected to trade “when
issued” on the New York Stock Exchange beginning on August 31,
2018, and the Fund’s shares of common stock are expected to trade
“Ex-Rights” on the New York Stock Exchange beginning on September
4, 2018. The Rights are expected to begin trading for normal
settlement on the New York Stock Exchange (NYSE:GCV RT) on or about
September 10, 2018.
- The Offering expires at 5:00 PM Eastern
Time on October 17, 2018, unless extended.
The Fund expects to mail subscription certificates evidencing
the Rights and a copy of the prospectus for the Offering to record
date shareholders beginning on September 7, 2018. Financial
Advisors will likely send notices to you shortly thereafter.
Inquiries regarding the Offering should be directed to the Fund at
800-GABELLI or 914-921-5070.
The Offering is made pursuant to the Fund’s effective shelf
registration statement on file with the Securities and Exchange
Commission.
Any common stock issued as a result of the Offering will not be
record date shares for the Fund’s quarterly distribution to be paid
on September 21, 2018, and will not be entitled to receive such
distribution.
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, when available, please
contact the Fund at 800-GABELLI or 914-921-5070.
The Gabelli Convertible and Income Securities Fund is a
diversified, closed-end management investment company with $107
million in total net assets whose primary investment objective is
to seek a high level of total return on its assets through a
combination of current income and capital appreciation. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors,
Inc. (NYSE:GBL).
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The Gabelli Convertible and Income Securities FundLaurissa
Martire, 914-921-5070
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