Terms

Series

Series B Cumulative Puttable and Callable Preferred Shares

Liquidation Preference

$50.00

Coupon Rate

7%

Rate Type

Variable

Annual Dividend

$3.50

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

December 20, 2023

First Call Price

$50.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: Creditors Of The Fund; Pari Passu With: Series A Cumulative Puttable And Callable Preferred Shares, Any Other Series Of Preferred Shares Of The Fund; Senior To: Common Shares, Any Capital Shares Ranking Junior To Series B Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

No

Shares Offered

1,370,433

Prospectus Summary

The Gabelli Global Utility & Income Trust, a non-diversified closed-end fund listed on NYSE American (GLU), is issuing up to 1,370,433 Series B Cumulative Puttable and Callable Preferred Shares at a liquidation preference of $50.00 per share via a rights offering. The initial dividend rate is 7.00% per annum ($3.50/share annually, or $0.875 quarterly), paid on March 26, June 26, September 26, and December 26, but the Board will reset the rate at the end of Year 1 and Year 3—subject to a floor of 4.00% and a ceiling of 7.00%, set at least 200 bps over the 10-year Treasury yield at the time. Crucially, the shares are cumulative, meaning any unpaid dividends accrue and must be paid in full before any distributions can be made to common shareholders. The Series B Preferred Shares rank senior to the Fund's common shares and any junior securities in both dividends and liquidation, and pari passu with the existing Series A Preferred Shares. In liquidation, preferred holders receive $50.00 per share plus accrued dividends before any payment to common shareholders. As a closed-end fund (not a bank holding company), there is no structural subordination concern, but the preferred ranks behind all creditors of the Fund. The Fund may redeem the shares at will on or after December 20, 2023 at liquidation preference plus accrued dividends; before that date, early redemption is permitted only if the Board determines it is necessary to preserve the Fund's RIC status under Subchapter M of the Internal Revenue Code—a regulatory-style call that could be triggered if retaining the preferred would jeopardize favorable tax treatment for the Fund. At the $50.00 offering price, the Year 1 yield is 7.00%. Dividends are paid quarterly on the 26th of March, June, September, and December, with a record date set five business days prior to each payment date. The Fund's investment objective emphasizes tax-advantaged qualified dividend income, suggesting dividends may qualify for the preferential 15%/20% QDI rate for individual holders, though investors should verify annual 1099-DIV characterizations. If accumulated dividends on the Series B Preferred Shares or any parity preferred series are in arrears, no distributions may be made to common shareholders until all preferred arrearages are cured. The shares carry no credit rating from any rating agency.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If cumulative dividends on the Series B Preferred Shares or parity preferred shares are in arrears, no dividends may be paid on the Fund's common shares or junior securities until all accumulated preferred dividends are made current.

Div Score Breakdown

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