The Gabelli Convertible and Income Securities Fund Inc. to Redeem Auction Rate Preferred Stock
The Board of Directors of The Gabelli Convertible and Income Securities
Fund Inc. (NYSE:GCV) has authorized the filing of a shelf registration
of up to $100 million in preferred stock or debt securities. The
registration process typically takes approximately one to two months.
Upon its completion the Fund will have additional flexibility to take
steps toward resolving the illiquidity that has occurred for holders of
the Fund’s auction rate preferred stock.
The Board of Directors has agreed in principle to the redemption of the
Fund’s auction rate preferred stock once the
shelf registration is declared effective.
The Fund currently has approximately $50 million of preferred stock
outstanding, $25 million of which is auction rate preferred stock.
This press release does not constitute an offer of any securities for
sale.
The Gabelli Convertible and Income Securities Fund Inc. is a
diversified, closed-end management investment company with $144 million
in total assets whose primary investment objective is to seek a high
level of total return through a combination of current income and
capital appreciation. The Fund is managed by Gabelli Funds, LLC, a
subsidiary of GAMCO Investors, Inc. (NYSE:GBL), which is a publicly
traded NYSE listed company.
