The GDL Fund Successfully Completes Series B Preferred Rights Offering Over-Subscribed
March 22 2018 - 4:05PM
Business Wire
The Board of Trustees of The GDL Fund (NYSE:GDL) (the “Fund”) is
pleased to announce the completion of its non-transferable rights
offering (the “Offering”) in which more than 2.6 million Series C
Cumulative Puttable and Callable Preferred Shares (the "Series C
Preferred") were offered, totaling approximately $131.2 million.
Pursuant to the Offering, the Fund issued one non-transferable
right (a “Right”) for each outstanding Series B Cumulative Puttable
and Callable Preferred Share (the "Series B Preferred") of the Fund
to shareholders of record as of February 14, 2018. Holders of
Rights were entitled to purchase the Series C Preferred with any
combination of cash or surrender of the Series B Preferred at
liquidation preference. Therefore, one Right plus $50.00, or one
Right plus one share of Series B Preferred with a liquidation value
of $50.00 per share, was required to purchase each share of the
Series C Preferred. The Offering expired at 5:00 PM Eastern Time on
March 20, 2018.
Preliminary results indicate that the Fund received total
subscriptions of approximately $155 million (including
over-subscription requests and notices of guaranteed delivery) for
118% of the 2,624,025 shares available to be issued pursuant to the
primary subscription. Approximately 83% of the shares available for
issuance were subscribed for in the primary subscription. Under the
terms of the Offering, the Fund’s Board of Trustees, or an
authorized committee thereof, has discretion to determine whether
all, part or none of the over-subscription shares, which represent
approximately 17% of the Series C Preferred available for issuance,
will be issued. The Board of Trustees, or an authorized committee
thereof, will make this determination by Friday, March 23, 2018
based on what it considers to be in the best interests of the
Fund.
We thank all our subscribing shareholders as well as the full
service brokers and financial advisers who assisted our
shareholders throughout the Offering.
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 contains 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,
please contact the Fund at 800-GABELLI or 914-921-5070.
The GDL Fund is a diversified, closed-end management investment
company with $330 million in total net assets whose investment
objective is to achieve absolute returns in various market
conditions without excessive risk of capital. The Fund is managed
by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc.
(NYSE:GBL).
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version on businesswire.com: https://www.businesswire.com/news/home/20180322006219/en/
For The GDL FundPeter Baldino, 914-921-5070
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