Terms

Series

5.00% Series B Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5%

Rate Type

Fixed

Annual Dividend

$1.25

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 7, 2018

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Creditors And Indebtedness Of The Fund (Claims Of Creditors Satisfied Before Preferred Shares In Liquidation); Pari Passu With: Other Series Of Preferred Shares Of The Fund Ranking On A Parity; Senior To: Common Shares, Any Other Shares Ranking Junior To Series B Preferred Shares As To Dividends And Liquidation

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

4,000,000

Prospectus Summary

GAMCO Global Gold, Natural Resources & Income Trust by Gabelli (GGN) is offering 4,000,000 shares of its 5.00% Series B Cumulative Preferred Shares at a liquidation preference of $25.00 per share, listed on NYSE MKT. The shares pay a fixed annual dividend of $1.25 per share ($0.3125 quarterly) and are first callable at par on May 7, 2018. These shares are cumulative, meaning any missed dividend payments accrue and must be paid in full before the Fund can make distributions to common shareholders — a meaningful protection for preferred holders in periods of portfolio stress. The Series B Preferred Shares rank senior to the Fund's common shares and any junior preferred series with respect to dividends and liquidation, but are subordinate to all creditor claims against the Fund. As a closed-end fund issuer (not a bank holding company), there is no structural subordination concern, but preferred holders are effectively behind any debt or borrowings the Fund incurs. Importantly, the Fund retains a regulatory call right: prior to May 7, 2018, it may redeem the Series B Preferred Shares at any time if the Board determines it is necessary to maintain the Fund's RIC status, meet rating agency asset coverage guidelines, or satisfy the 1940 Act's 200% asset coverage requirement for senior equity securities. A failure to cure an asset coverage shortfall within 60 days triggers mandatory partial or full redemption at $25.00 plus accrued dividends. At the $25.00 offering price, the Series B Preferred Shares yield exactly 5.00% annually, paid quarterly on March 26, June 26, September 26, and December 26, with the record date set as of the close of business on the fifth preceding business day. Importantly, the Fund's distributions historically have not qualified for the preferential qualified dividend income (QDI) rate available to individual investors or the dividends-received deduction (DRD) for corporate holders, because the Fund's income is primarily derived from option premiums and foreign equities rather than U.S. corporate dividends — investors should expect ordinary income treatment. Common shareholders may not receive any distributions until all accumulated Series B Preferred dividends are current.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the Fund fails to pay full cumulative dividends on the Series B Preferred Shares, no dividends or distributions may be paid to common shareholders or holders of any shares junior to the Series B Preferred Shares; conversely, if parity preferred series have unpaid cumulative dividends, the Series B Preferred Shares cannot receive full dividends either, and available funds are distributed pro rata among all parity preferred series.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 81 (Very Strong)