Gabelli Go Anywhere Trust - $100 Combination
July 14 2016 - 3:10PM
Business Wire
A – 1 Preferred Share at $40, 8% Year 1, minimum 5%
thereafter, Puttable at $40 liquidation preference in Years
3 and 5
B – 3 Common Shares, $20 each, that the Fund is required to
tender for at no less than 95% of NAV no later than in Year
5
Gabelli Funds, LLC announces the initial public offering of The
Gabelli Go Anywhere Trust (the “Fund”), a newly organized,
non-diversified, closed-end management investment company.
A team of portfolio managers at Gabelli Funds led by Mario J.
Gabelli will manage The Gabelli Go Anywhere Trust.
The Fund’s primary investment objective is total return,
consisting of capital appreciation and current income. Under normal
market conditions, the Fund intends to invest in a broad range of
equity securities consisting of common stock, preferred stock,
convertible or exchangeable securities, common and preferred equity
securities issued by other closed-end management investment
companies, and, to a lesser extent, in debt securities.
The Fund is offering common and preferred shares. Shareholders
will be offered to purchase a “Combination” consisting of 3 common
shares and 1 Series A Cumulative Puttable and Callable Preferred
Share (the “Series A Preferred Shares”). The Combinations will
initially trade on the New York Stock Exchange or NYSE MKT for 60
days; thereafter separate trading for the common shares and Series
A Preferred Shares will commence and the Combinations will be
delisted.
The Fund’s common shares and Series A Preferred Shares are being
offered to the public at $100 per Combination (equating to three
common shares at $20 per share, and one Series A Preferred Share at
$40 per share). G.research, LLC, an affiliate of Gabelli Funds, is
underwriting the Fund’s initial public offering on a best efforts
basis.
Gabelli Funds, LLC and/or its control affiliates may purchase up
to the greater of $20,000,000 in Combinations, or 20% of the total
number of Combinations.
The information herein is not complete and is subject to
change. This notice 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 notice is not an
offering, which can only be made by a prospectus. Investors should
carefully consider the Fund’s investment objective, risks, charges
and expenses before investing. The prospectus contains this and
other information about the Fund and the offering, and should be
read carefully before investing. To obtain a prospectus, please
call 800-GABELLI or visit www.gabelli.com.
The Fund must sell at least 500,000 Combinations in order to
close its initial public offering; the maximum number of
Combinations the Fund may sell is 2,000,000. The Fund’s offering
period expires on August 23, 2016 and is subject to up to two
extensions of up to ten days each. The Fund’s Declaration of Trust
provides that not later than 30 days prior to the fifth anniversary
of the closing date of its initial public offering, the Fund will
commence a cash tender offer for any and all of the common shares
at a price per common share not less than 95% of the net asset
value per common share.
Closed-end funds involve risk for investors. Closed-end funds
are traded on the secondary market through a stock exchange. A
closed-end fund’s investment return and principal value will
fluctuate so that an investor’s shares may be worth more or less
than the original cost. Shares of closed-end funds may trade above
(premium) or below (discount) the net asset value (NAV) of the
fund’s portfolio. The distribution rate on the Series A
Preferred Shares is based on the $40 liquidation preference;
therefore the 8% distribution rate for the Series A Preferred
Shares during the Fund’s first year of operations represents 3.2%
of a shareholder’s total Combination investment. Additionally, the
Fund might not pay periodic distributions to common shareholders
during the Fund’s first year of operations. Payment of
distributions is not assured and is made only when declared by the
Fund’s Board of Trustees. A portion of any planned distributions
may be a return of capital, which may have the effect of increasing
the Fund’s leverage ratio. The distributions that include a return
of capital should not be considered as dividend yield nor as part
of the total return of an investment in the Fund.
The market price for a closed-end fund is based on supply and
demand which fluctuates daily based on many factors, such as
economic conditions and global events, investor sentiment, and
security specific factors. The possibility of a market decline
should be considered market risk. There is no assurance that the
Fund will achieve its investment objective and you can lose money
by investing in a closed-end fund. Past performance does not
guarantee future results.
The use of leverage, which can be described as exposure to
changes in price at a ratio greater than the amount of equity
invested, through the issuance of preferred shares, magnifies both
the favorable and unfavorable effects of price movements in the
investments made by the Fund. The Fund’s use of leverage in its
investment operations subjects it to substantial risk of loss.
GAMCO Investors, Inc. (NYSE: GBL), through its subsidiaries,
manages assets of private advisory accounts (GAMCO) and mutual
funds and closed-end funds (Gabelli Funds, LLC) and is known for
its Private Market Value with a Catalyst™ style of investment. As
of March 31, 2016, GAMCO Investors, Inc. had $38.7 billion in
assets under management. Further information can be found at
www.gabelli.com.
NOT FDIC-INSURED
NOT BANK GUARANTEED
MAY LOSE VALUE
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Gabelli Funds, LLCDavid Schachter, 914-921-5057Laurissa Martire,
914-921-5399
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