The GDL Fund Resets Dividend Rate for Its Series C Cumulative Puttable and Callable Preferred Shares
March 01 2021 - 4:32PM
Business Wire
The Board of Trustees (the “Board”) of The GDL Fund (NYSE:GDL)
(the “Fund”) has determined to continue the annual dividend rate of
4.00% for the Series C Preferred Shares, effective for all
remaining quarterly dividend periods prior to the mandatory
redemption date for the Series C Preferred of March 26, 2025,
pursuant to the provisions of its Statement of Preferences.
The Series C Preferred Shares, which trade on the New York Stock
Exchange under the symbol “GDL Pr C”, were issued on March 26, 2018
at $50.00 per share. The Series C Preferred will pay distributions
quarterly at an annualized dividend rate of 4.00% of the $50.00 per
share liquidation preference of the Series C Preferred for the
quarterly dividend periods ending on or prior to March 26,
2025.
The Series C Preferred may be put back to the Fund during the
30-day period prior to March 26, 2022 at the liquidation preference
of $50.00 per share, plus any accumulated and unpaid dividends, and
redeemed by the Fund, at its option, at the liquidation preference
of $50.00 per share, plus any accumulated and unpaid dividends, on
March 26, 2021 or March 26, 2023.
Part of the distribution may be treated as qualified dividend
income for individuals, subject to the maximum federal income tax
rate for long term capital gains, which is currently 20% in taxable
accounts for individuals (or less depending on an individual’s tax
bracket). In addition, certain U.S. shareholders who are
individuals, estates or trusts and whose income exceeds certain
thresholds will be required to pay a 3.8% Medicare surcharge on
their "net investment income", which includes dividends received
from the Fund and capital gains from the sale or other disposition
of shares of the Fund.
Short-term capital gains, qualified dividend income, investment
company taxable income, and return of capital, if any, will be
allocated on a pro-rata basis to all distributions to common
shareholders for the year. Long-term capital gains, if any, are
distributed in the final distribution of the year. Based on the
accounting records of the Fund currently available, the current
distribution paid to common shareholders in 2021 would include
approximately 18% from net capital gains and 82% would be deemed a
return of capital on a book basis. This does not represent
information for tax reporting purposes. The estimated components of
each distribution are updated and provided to shareholders of
record in a notice accompanying the distribution and are available
on our website (www.gabelli.com). The final determination of the
sources of all distributions in 2021 will be made after year end
and can vary from the quarterly estimates. Shareholders should not
draw any conclusions about the Fund’s investment performance from
the amount of the current distribution. All individual shareholders
with taxable accounts will receive written notification regarding
the components and tax treatment for all 2021 distributions in
early 2022 via Form 1099-DIV.
Investors should carefully consider the investment objectives,
risks, charges, and expenses of the Fund before investing. More
information regarding the Fund’s distribution policy and other
information about the Fund is available by calling 800-GABELLI
(800-422-3554) or visiting www.gabelli.com.
About The GDL Fund
The GDL Fund is a diversified, closed-end management investment
company with $186 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).
NYSE – GDL PrC CUSIP – 361570401
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210301005987/en/
Investor Relations Contact: Laurissa Martire (914) 921-5399
lmartire@gabelli.com
GDL (NYSE:GDL)
Historical Stock Chart
From Aug 2024 to Sep 2024
GDL (NYSE:GDL)
Historical Stock Chart
From Sep 2023 to Sep 2024