Gabelli Equity Trust New Preferred Details

Finally the final prospectus for the new Gabelli Equity Trust (GAB) preferred has been posted.

As everyone knows the coupon is 5% with an early redemption available to the company in 2024.

Issue is cumulative and likely qualified (this is not guaranteed and various dividends may not be qualified–some may be return of capital).

The company said they anticipated a Moodys rating of A1, but Moodys has no rating issued at this time–we shall see if it hits in a day or two.

The final prospectus can be read here.

4 thoughts on “Gabelli Equity Trust New Preferred Details”

  1. I already own GGZ-pA, GDV-pG and GDV-pH. All in a taxable account. While GGZ-pA is QDI the other two marked as variable. Any thoughts on buying this newer GAB-pK in a Roth IRA? If it’s true that QDI is variable I suppose I would take full advantage of the variable QDI but then again the reverse is true.

    I’m one of those older guys that buy and hold IG for Income.. lol

    thanks

    1. I put my most aggressive investments in Roth IRA. Since this is low risk low coupon I’d put it in regular account if I bought it. But then I’m not concerned about QDI so that doesn’t really answer your question.

    2. Nothing wrong with holding these issues–I have some as well, in limited quantity, purely for safety.

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