RYE, NY, Aug. 22, 2024 (GLOBE NEWSWIRE) — The Board of Directors of Gabelli Utility Trust (NYSE: GUT) (the “Fund”) has approved a rights offering that will allow the Fund’s common shareholders to purchase additional shares of Common Stock as of the Record Date (the “Offering”). The Offering will be made only by means of a prospectus supplement and accompanying prospectus, and this announcement does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Fund.
SUMMARY OF OFFER CONDITIONS
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Each shareholder will receive one transferable right (the “Right”) for each common share held by the shareholder on the Record Date (September 9, 2024). The number of Rights allocated to a shareholder as of the close of business on the Record Date will be rounded up to the nearest number of Rights divisible by five.
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Record date shareholders who exercise their subscription rights in full will be entitled to an oversubscription privilege. This entitles these shareholders, subject to certain restrictions and a pro rata allocation, to subscribe for all additional ordinary shares not acquired under the subscription rights at the same subscription price. Rights acquired on the secondary market may not be subject to the oversubscription privilege and a record date shareholder who sells rights will not be entitled to participate in the oversubscription privilege.
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The Rights are expected to begin trading on the New York Stock Exchange “when issuance” on September 5, 2024, and the Fund’s common shares are expected to begin trading “ex-rights” on the New York Stock Exchange on September 6, 2024. The Rights are expected to begin trading on a regular basis on the New York Stock Exchange (NYSE: GUT RT) on or about September 12, 2024.
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The Rights may be sold directly by individual holders or submitted for sale to Computershare Trust Company, NA (the “Rights Agent”). The last date to submit a request for sale of unexercised Rights must be October 14, 2024 and received by the Rights Agent.
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The offering will expire at 5:00 p.m. Eastern Time on October 21, 2024, unless extended. Subscription rights may be exercised at any time during the subscription period.
The Fund expects to mail subscription certificates evidencing the Rights and a copy of the prospectus supplement and accompanying prospectus for the Offering to record date shareholders as of September 11, 2024. Financial advisers are expected to send you communications shortly thereafter. Please direct inquiries regarding the Offering to:
David Schachter at 914-921-5057.
The offering is being made pursuant to the Fund’s effective securities registration statement filed with the U.S. Securities and Exchange Commission.
Any common shares issued in the offering will not be record-date shares for the Fund’s monthly distribution payable on October 24, 2024, and will not entitle holders to receive such distribution.
Depending on market conditions at the time of closing, the Fund may use the net proceeds from the offering for investment purposes consistent with the Fund’s investment objectives. Alternatively, the proceeds may be used, at the discretion of the Board of Directors, to redeem shares of the Fund’s outstanding preferred stock or to redeem its outstanding debt securities.
The information contained herein is not complete and is subject to change. This document does not constitute an offer to sell these securities and is not a solicitation of an offer to buy these securities in any jurisdiction in which the offer or sale is not authorized. This document does not constitute an offer, which can only be made by a final prospectus supplement and accompanying prospectus. Investors should carefully consider the Fund’s investment objective, risks, charges and expenses before investing. The base prospectus contains this and other information about the Fund and the prospectus supplement will contain this and other information about the offering and should be read carefully before investing. For more information about the offering or to obtain a prospectus supplement and accompanying prospectus when available, please contact the Fund at 800-GABELLI or 914-921-5070.
About The Gabelli Utility Trust
Gabelli Utility Trust is a diversified, closed-end investment company with net assets of $296 million whose primary investment objective is to seek long-term capital and income growth by investing primarily in utility companies involved in the generation and distribution of electricity, gas and water. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (OTCQX: GAMI).
NYSE – GOOD
CUSIP – 36240A101
For information:
David Schachter
(914) 921-5057
[email protected]
