Terms

Series

Series A Cumulative Puttable and Callable Preferred Shares

Liquidation Preference

$50.00

Coupon Rate

6%

Rate Type

Fixed To Floating

Annual Dividend

$3.00

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 19, 2018

First Call Price

$50.00

Capital Stack Ranking

Junior To: Any Indebtedness Incurred By The Fund; Pari Passu With: Other Series Of Series A Preferred Ranking On Parity; Senior To: Common Shares, Other Capital Shares Ranking Junior To Series A Preferred

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

1,032,428

Prospectus Summary

The Gabelli Global Utility & Income Trust, a non-diversified closed-end management investment company, is offering up to 1,032,428 shares of its Series A Cumulative Puttable and Callable Preferred Shares at a liquidation preference of $50.00 per share. The dividend rate is 6.00% per annum initially (through June 26, 2014), steps down to 3.00% for the following eight quarters through June 26, 2016, and thereafter resets to a Board-determined rate of 200 basis points over the 10-year U.S. Treasury Note yield, subject to a 3.00% floor and 5.00% cap. The shares are cumulative, meaning any missed dividend payments accumulate and must be paid in full before any distributions can be made on common shares or other junior securities. The Series A Preferred sits above common shares in the capital stack, with distributions and liquidation proceeds paid in preference to common shareholders. However, these shares are junior to any debt obligations of the Fund. The Fund is subject to the 1940 Act requirement that asset coverage for the Series A Preferred be at least 200% before any common share dividends can be declared, providing structural protection for preferred holders. Notably, the Fund may redeem the Series A Preferred prior to the June 19, 2018 call date if the Board determines redemption is necessary to preserve the Fund's regulated investment company (RIC) tax status under Subchapter M of the Internal Revenue Code — effectively a regulatory call that could accelerate redemption in adverse portfolio scenarios. At the initial $50.00 liquidation preference and 6.00% coupon, the annual dividend is approximately $3.00 per share ($0.75 quarterly), paid on March 26, June 26, September 26, and December 26 each year, commencing September 26, 2013. The record date is the fifth preceding Business Day before each payment date. As a RIC, the tax character of distributions depends on the Fund's underlying income and may include ordinary income, qualified dividend income, or return of capital — QDI treatment is not explicitly guaranteed for Series A Preferred holders. Common share dividends are blocked if Series A Preferred cumulative dividends are in arrears, and the 1940 Act asset coverage test provides an additional mechanism that can restrict common distributions if the Fund's asset value declines materially.

Summarized from the SEC prospectus filing.

Distribution History

No distribution history on file.

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the Fund has not paid full cumulative dividends on all outstanding Series A Preferred, it cannot pay full dividends on common shares or other junior capital shares; additionally, the 1940 Act prohibits common share dividends unless Series A Preferred maintains at least 200% asset coverage.

Other Preferreds from The Gabelli Global Utility and Income Trust Series A Cumulative Puttable and Callable Preferred Shares

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 53 (Average)