Terms

Series

5.125% Series E Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5.125%

Rate Type

Fixed

Annual Dividend

$1.28

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 26, 2022

First Call Price

$25.00

Redemption Notice Period

15 days

Capital Stack Ranking

Junior To: All Indebtedness And Debt Obligations Of The Fund; Pari Passu With: Series B Cumulative Preferred Stock, Series C Auction Rate Cumulative Preferred Stock, Any Future Preferred Shares Of The Fund; Senior To: Common Shares, Any Other Shares Of The Fund Ranking Junior To Series E Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,000,000

Prospectus Summary

The Gabelli Multimedia Trust Inc. (NYSE: GGT), a non-diversified closed-end management investment company managed by Gabelli Funds, LLC, is offering 2,000,000 shares of its 5.125% Series E Cumulative Preferred Shares at a liquidation preference of $25.00 per share, callable at par on or after September 26, 2022. The fixed 5.125% annual rate generates approximately $0.3203 per share quarterly ($1.281 annually). These shares are cumulative, meaning any unpaid dividends accrue and must be paid in full before any distributions can be made to common shareholders — providing holders a degree of payment priority if the Fund temporarily lacks sufficient funds to declare dividends. The Series E Preferred Shares rank senior to the Fund's common shares and on parity with existing Series B and Series C preferred shares with respect to dividends and liquidation. They are junior to all of the Fund's debt obligations. As a closed-end fund, the Fund is subject to the Investment Company Act of 1940's 200% asset coverage requirement: if asset coverage falls below this threshold and is not cured within 60 days, mandatory redemption of preferred shares is triggered. Similarly, failure to maintain Moody's Basic Maintenance Amount triggers a mandatory redemption protocol. The Fund may also redeem shares before the September 2022 call date if necessary to preserve its regulated investment company (RIC) tax status — an important structural risk specific to closed-end fund preferred shares. At the $25.00 liquidation preference, the Series E Preferred Shares yield 5.125% annually, paid quarterly on March 26, June 26, September 26, and December 26, with the record date set five business days before each payment date. The tax treatment is referenced to the accompanying Prospectus and SAI and is not detailed in this supplement; as a closed-end fund preferred, dividends may include ordinary income, capital gains, or return of capital components rather than qualifying dividend income, and investors should consult tax advisors. Dividend stopper mechanics mean common share dividends are blocked if Series E cumulative dividends are in arrears, and parity preferred dividends must be paid pro rata if full cumulative distributions cannot be made across all preferred series simultaneously.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full cumulative dividends on all outstanding parity preferred shares are not paid, no dividends may be declared on the Series E Preferred Shares; conversely, no dividends may be paid on common shares unless the Series E Preferred Shares' liquidation preference and accumulated dividends are fully paid and the Fund meets its 200% asset coverage requirement.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 73 (Strong)