The Gabelli Convertible and Income Securities Fund Inc. to Redeem Its Outstanding 6.00% Series B Cumulative Preferred Stock
October 17 2019 - 4:10PM
Business Wire
The Board of Directors of The Gabelli Convertible and Income
Securities Fund Inc. (NYSE:GCV) (the “Fund”) authorized the
redemption of all remaining outstanding shares of Series B
Cumulative Preferred Stock (the “Series B Preferred”). The
redemption date is November 18, 2019 (the “Redemption Date”), and
the redemption price is $25.2167 per Series B Preferred, which is
equal to the liquidation preference of $25.00 per Series B
Preferred plus accumulated and unpaid dividends and distributions
through the redemption date.
As of the Redemption Date, the Series B Preferred will no longer
be deemed outstanding, dividends will cease to accumulate and all
the rights of the Series B Preferred shareholders with respect to
the Series B Preferred will cease, except the right to receive the
redemption price. Shareholders of record will be mailed a
redemption notice shortly.
The Series B Preferred, which trade on the New York Stock
Exchange under the symbol “GCV Pr B”, are rated “A1” by Moody’s
Investors Service and have an annual dividend rate of $1.50 per
share. The Series B Preferred was issued on March 18, 2003 at
$25.00 per share and pay distributions quarterly. The Series B
Preferred Shares are callable at any time, after proper
notification is given, at the liquidation preference of $25.00 per
share plus accrued dividends.
The redemption of the Series B Preferred is being funded with a
portion of the proceeds from the Fund’s issuance of $35 million in
Series E 4.00% Cumulative Preferred Stock that closed on October
16, 2019.
The Gabelli Convertible and Income Securities Fund Inc. is a
diversified, closed-end management investment company with $160
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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Laurissa Martire (914) 921-5070
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