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The Gabelli Convertible and Income Securities Fund Inc. (NYSE - GCV) is pleased to announce the
placement of two series of Preferred Stock valued at a total of $50 million. The placement consists
of $25 million of Series B 6.00% Cumulative Preferred Stock and $25 million of Series C Auction Rate
Cumulative Preferred Stock. The proceeds raised will be used for investment purposes.
The Series B 6.00% Preferred Shares are rated "Aaa" by Moody's Investors Service, Inc. The Series B
6.00% Preferred Shares are perpetual, non-callable for five years and will be issued at $25 per share.
Distributions will be paid quarterly beginning on June 26, 2003. The Fund expects that the Series B
6.00% Preferred Shares will trade on the New York Stock Exchange under the symbol "GCV Pr B" within
30 days.
The Series C Auction Rate Preferred Shares are rated "Aaa" by Moody's Investors Service, Inc. and
"AAA" by Fitch, Inc. The Series C Preferred Shares are perpetual and generally are callable at any
time without premium. The initial dividend rate for the Series C Preferred Shares will be 1.30% for
the period ending March 25, 2003. The dividend rates for subsequent periods will be determined by
an auction process.
The Board of Directors shares the Investment Adviser's view that the issuance of the preferred stock
is designed to benefit the common shareholders. The Fund expects that following investment of the
proceeds, it will be able to earn in excess of the dividend rate on the preferred shares and thereby
create additional value for its common shareholders.
It should be noted that the Investment Adviser will not receive a management fee on the incremental
assets raised unless the total return of the Fund to common shareholders during the year exceeds the
dividend rate of the preferred stock, including the costs of any interest rate swap agreement the
Fund may enter into to protect against short-term interest rate increases. The Investment Adviser
believes this fee arrangement is in the best interests of all shareholders.
Salomon Smith Barney, Inc. and Gabelli & Company, Inc. served as underwriters for the offering,
which is expected to close on March 18, 2003.
The Gabelli Convertible and Income Securities Fund Inc. is a closed-end, diversified management
investment company with $146 million in total assets, after giving effect to the issuance of the
preferred shares. The Fund's primary investment objective is to seek a high level of total return
through a combination of current income and capital appreciation. The Fund is managed by Gabelli
Funds, LLC, a subsidiary of Gabelli Asset Management Inc. (GBL - NYSE), which is a publicly traded
NYSE listed company.
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