The Gabelli Equity Trust Inc. (the "Fund") (NYSE:GAB) is pleased to announce the completion of
its Rights Offering in which shareholders of record received one transferable Right for each
share of its common stock held on the record date of September 21, 2005. Shareholders of seven
Rights were entitled to purchase one newly issued share of common stock of the Fund at the
subscription price of $7.00 per share.
Preliminary results indicate that the Fund received subscriptions for nearly 150% of the
20,525,901 shares available to be issued pursuant to the primary subscription. Approximately
80% of the shares to be issued were subscribed for in the primary subscription. The remaining
shares to be issued pursuant to the Offer will be allocated by means of the over-subscription
privilege for shareholders of record. Details regarding shares available for the over-subscription
privilege are not yet available.
Shareholders of record as of September 21, 2005 who exercised their full primary subscription
Rights were eligible for an over-subscription privilege entitling them to subscribe, subject to
certain limitations and a pro-rata allotment, for any shares not purchased pursuant to the
The Fund currently pays quarterly distributions to shareholders, pursuant to its 10% Distribution
Policy. All of the primary and over-subscription shares to be issued in conjunction with the
Rights Offering will receive the fourth quarter distribution, payable in December 2005. The
Fund has a policy, which may be modified at any time by its Board of Directors, of paying a
minimum annual distribution of 10% of the average net asset value of the Fund to common stock
shareholders. Each quarter, the Board of Directors reviews the amount of any potential
distribution and the income, capital gains or paid-in capital available. The Fund's current
quarterly distribution level was raised to $0.19 per share for the third quarter, a 6% increase
from the previous quarter's $0.18 per share distribution. The Fund anticipates an adjusting
distribution in the fourth quarter of a sufficient amount to pay 10% of the average net asset
value of the Fund, as of the last day of the four preceding calendar quarters, or to satisfy
the minimum distribution requirements of the Internal Revenue Code, whichever is greater.
The amount, record date, and payable date for the fourth quarter distribution will be announced
at a later date.
We would like to thank all of the full service brokers and financial advisers who assisted our
shareholders without receiving a commission. Additionally, we would like to thank all of our
subscribing shareholders for their support.
The Gabelli Equity Trust Inc. is a non-diversified, closed-end management investment company
with $1.7 billion in total assets, after giving effect to the full subscription of the Rights
Offering, whose primary investment objective is long-term growth of capital. The Fund is
managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a
publicly traded NYSE listed company.