The Gabelli Dividend & Income Trust (NYSE:GDV) is pleased to announce the placement of two
series of Preferred Shares valued at a total of $200 million. The placement consists of
$65 million of 6.00% Series D Cumulative Preferred Shares and $135 million of Series E Auction
Rate Preferred Shares. The proceeds raised will be used for investment purposes.
The 6.00% Series D Cumulative Preferred Shares are rated "Aaa" by Moody's Investors Service,
Inc. The 6.00% Series D Cumulative Preferred Shares are perpetual, non-callable for five
years and will be issued at $25 per share. Distributions will be paid quarterly beginning
on December 27, 2005. The Fund expects that the 6.00% Series D Cumulative Preferred Shares
will trade on the New York Stock Exchange under the symbol "GDV Pr D" within 30 days.
The Series E Auction Rate Preferred Shares are rated "Aaa" by Moody's Investors Service, Inc.
and "AAA" by Standard & Poor's Ratings Services. The Series E Auction Rate Preferred Shares
are perpetual and generally are callable at any time without premium. The initial dividend
rate for the Series E Auction Rate Preferred Shares will be 3.70% for the period ending
November 9, 2005. The dividend rates for subsequent periods will be determined by an auction
The Board of Trustees shares the Investment Adviser's view that the issuance of the preferred
shares is designed to benefit the common shareholders. To the extent that, following investment
of the proceeds, the Fund earns in excess of the dividend rate on the preferred shares, additional
value will thereby be created 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 shares, 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.
Citigroup, Merrill Lynch & Co., A.G. Edwards, and Gabelli & Company, Inc. served as underwriters
for the offering, which is expected to close on November 3, 2005.
The Gabelli Dividend & Income Trust is a non-diversified, closed-end management investment
company with $2 billion in total assets whose primary investment objective is to provide a
high level of total return with an emphasis on dividends and income. The Fund is managed by
Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly
traded NYSE listed company.