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Gabelli Comes A Calling Again

The Gabelli Healthcare and Wellness Trust (GRX) has announced they will be calling the only preferred they have outstanding.

The 5.875% GRX-B shares will be redeemed on 12/24/2020 for $25 plus 35.9 cents of dividends accrued.

The various Gabelli funds have been redeeming issues by selling shares in the trust–versus doing a ‘re-fi’ with a new preferred. Essentially they are selling shares at high prices–shrinking the size of the trust and reducing leverage–seems like a smart move.

The shares which had traded as high as $27 or so in October are now trading at $25.33–falling about 55 cents from yesterdays close.

The press release can be read here.

Green-n-Gold was on top of the press release earlier today.

4 thoughts on “Gabelli Comes A Calling Again”

  1. You have to assume that insiders, other in-house funds, or whatever funny business made them leave the all the issues out so long. Good for preferred holders over the years was bad for the cef holders. The Gabelli cef funds are a great money machine for the firm but have no idea who would own them.

    1. SDmarc–yes leaving these outstanding so long has historically meant we had board member with large positions–but eventually common holders get tired of that and they are forced to call them.

  2. I’m amazed by how high some of the coupons are on these outstanding Gabelli preferreds. They should have been called pre-pandemic. Makes me less worried about an eventual call on my 5% GAB-K in four years or an immediate call on the H or G series. They may be the lowest coupon Gabelli preferreds out there.

    1. SD & Landlord, holding my breath hoping that the “funny business”continues or interest rates rise. 1500 shares of GDV G&H at average costs of $24.54 securely in my Sock Drawer. A blind sow that found an acorn I guess.

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