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Gabelli Dividend & Income Trust Prices New Preferred – Ticker Update

UPDTAE–The OTC ticker is GDVKP

Closed end fund Gabelli Dividend & Income Trust (GDV) has priced their previously announced new perpetual preferred stock.

As is fitting for a closed end fund (CEF) with an asset coverage ratio of 952% (as of 9/30/2021) the new issue prices at 4.25%. The issue is rated Aa3 (strongly investment grade) by Moody’s

A portion of the proceeds from this new issuance will be used to redeem the GDV-G 5.25% issue which became redeemable on 7/1.

The permanent ticker will be GDV-K when it gets to NYSE trading. The OTC grey market ticker has not been announced.

The pricing term sheet can be found here.

4 thoughts on “Gabelli Dividend & Income Trust Prices New Preferred – Ticker Update”

  1. Got sidetracked this morning. Appears there was a brief window to snag this under par. Now trading $25.20’s

    1. Since it has a low yield and everyone is so interest rate worried right now I plan to hold off buying for a day or two and see what happens. Plenty of options to buy IG rated at 4-4.25% right now. I want to pay par or below. The first day often sees people bid it up for it to slowly sink a bit.

      Definitely not in the mood to chase with the market seeing higher volatility.

      Sure enough 4000 shares at 25.05 sold just now. This expert market thing is such a pain. I have not even tested calling in on this stuff yet.

      1. Well this got away from me. I thought I could get some shares to put into a low risk bucket for 25.05 – 25.20 but I am not having much luck. Lost all access to OTC at this time for new preferred. Besides the very good investment rating I have a feeling the market might be doing me a favor by letting me not pick my price. In 6 months this might be under par based on some of the action on IG rated preferred peers. Not sure what to think.

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