Gamco announces preliminary results of tender offer for 0% debentures

By Angela McDaniels

Tacoma, Wash., July 3 - Gamco Investors, Inc. holders tendered $64,152,430 principal amount of its zero-coupon subordinated debentures due 2015 at or below the final purchase price of $870 per $1,000 principal amount of debentures, according to preliminary results announced by the company in a news release.

A tender offer for the $86,114,564 of outstanding debentures began May 21 and ended at 5 p.m. ET on July 2.

The preliminary amount tendered includes $76.54 million of debentures that were tendered through notice of guaranteed delivery.

The amount tendered is subject to verification by Computershare Trust Co., NA, the depositary for the offer. Gamco expects to announce the actual principal amount tendered on July 9.

Pricing was determined through a modified Dutch auction. The price range was $820 to $870, net to the seller in cash without interest, for each $1,000 of debentures.

When the offer began, the company was tendering for between $20 million and $50 million of the debentures, and the expiration date was scheduled for midnight ET on June 18. On June 19, Gamco removed the cap and extended the offer to July 2.

In addition, the company amended the offer on May 25, allowing holders to tender debentures in multiples of $1 instead of $1,000.

As of the original expiration date, $63,203,000 principal amount of debentures had been validly tendered. Included in that amount was $38,212,800 of the $45,772,300 principal amount of debentures beneficially owned by Mario J. Gabelli, Gamco's chairman, chief executive officer and chief investment officer - value portfolios, and about $1,448,800 of the $1,599,700 principal amount of debentures owned by Gamco's other directors and executive officers.

Funding for the offer will come from cash on hand.

Morrow & Co., LLC (877 815-6525 or Gamco.info@morrowco.com) is the information agent.

Gamco Investors is based in Rye, N.Y. It manages private advisory accounts through Gamco Asset Management Inc., mutual funds and closed-end funds through Gabelli Funds, LLC and partnerships and offshore funds through Gabelli Securities, Inc.

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