Today I received an optional ‘put’ notice for my Gabelli Global Utilities 5.20% Puttable Preferred ($50/share)–I always wondered the exact mechanics of one of these transactions because after all these years I had never owned a puttable issue.
Obviously I am not tendering–I bought these just a week or so ago to hold for at least 18 months.
Below is the notice I received from eTrade.
Issuer name: GABELLI GLOBL UT & INC TR SE B
CUSIP: 36242L303
Cutoff Date: 2025-06-25
The Issuer is proposing a(n) TENDER.
OPTION1: CA- USD
Holders that tender will have their positions removed from the account in exchange for cash at the liquidation preference of $50.00 per Preferred Share plus any accumulated and unpaid dividends.
If you wish to participate, navigate to etrade.com > Portfolios > Shareholder Actions or visit: etrade.com/voluntaryelection
I wonder if the broker will charge a fee to transact it. Nice hiding spot substitute for CDs / MM. My view is that short term rates are not going to persist.