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.
The Trust received subscriptions for nearly 150% of the 20,565,901 shares available to be
issued pursuant to the primary subscription. The subscriptions totaled $197 million, of
which $143 million was retained with the balance returned to investors. Approximately 80%
of the shares issued were subscribed for in the primary subscription. The remaining shares
issued pursuant to the Offering were allocated by means of the over-subscription privilege
for shareholders of record.
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 primary subscription.
All of the primary and over-subscription shares issued pursuant to the Rights Offering were
issued on November 1, 2005. It is anticipated that the newly issued shares will be delivered
on or about November 3, 2005.
The Fund currently pays quarterly distributions to shareholders, pursuant to its 10% Distribution
Policy. All of the primary and over-subscription shares issued in conjunction with the Rights
Offering have been issued prior to the record date of 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 $1.8 billion in total assets 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.