Terms

Series

5.20% Series A Cumulative Preferred Shares

Liquidation Preference

$25.00

Coupon Rate

5.2%

Rate Type

Fixed

Annual Dividend

$1.30

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 26, 2022

First Call Price

$25.00

Redemption Notice Period

15 days

Capital Stack Ranking

Junior To: All Indebtedness And Creditor Claims Of The Fund; Pari Passu With: Any Future Series Of Preferred Shares Of The Fund; Senior To: Common Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

1,200,000

Prospectus Summary

GAMCO Natural Resources, Gold & Income Trust (NYSE: GNT) is offering 1,200,000 shares of its 5.20% Series A Cumulative Preferred Shares at a liquidation preference of $25.00 per share, raising $30 million gross. The shares pay a fixed annual dividend of $1.30 per share ($0.325 quarterly) on March 26, June 26, September 26, and December 26, commencing December 26, 2017. These are cumulative preferred shares, meaning any missed dividends accrue and must be paid in full before common shareholders receive any distributions — a meaningful structural protection for income investors. The Series A Preferred Shares rank senior to the Fund's common shares and pari passu with any future preferred series with respect to dividends and liquidation, but are junior to all creditor claims and indebtedness of the Fund. The Fund is a closed-end RIC and does not hold debt at the operating subsidiary level, but any borrowings or notes issued would rank ahead of these preferred shares. Critically, the shares carry both an optional call (from October 26, 2022, at $25.00 plus accrued dividends) and a mandatory redemption risk: if the Fund fails to maintain 200% asset coverage under the 1940 Act, or breaches rating agency Basic Maintenance Amount thresholds, it may be forced to redeem shares — potentially at an inopportune time for investors. The Fund may also redeem at any time to preserve its RIC tax status. At the $25.00 offering price, the effective yield is exactly 5.20%. Dividends are payable quarterly, with a record date set as of the close of business on the fifth preceding business day before each payment date. Because the Fund is a RIC investing primarily in natural resources and gold equities and using a covered call strategy, distributions may include ordinary income, short-term capital gains, or return of capital rather than qualified dividend income — investors should not assume preferential 15%/20% QDI treatment without consulting the Fund's annual tax reporting. Corporate holders should similarly verify DRD eligibility. Common dividends and common share repurchases are blocked if the Fund's asset coverage falls below 200%, protecting preferred holders from junior capital distributions during periods of portfolio stress.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the Fund fails to maintain the required 1940 Act 200% asset coverage, it cannot declare dividends on common shares; additionally, arrears on any pari passu preferred series must be ratably paid before full dividends are paid on Series A Preferred Shares, and Fund indebtedness restrictions can further limit distributions.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 64 (Strong)