Gamco tenders for $50 million of 0% notes due 2015 via Dutch auction

By Susanna Moon

Chicago, May 21 - Gamco Investors, Inc. said it began a cash tender offer for between $20 million and $50 million of its $86,114,564 outstanding 0% subordinated debentures due 2015 by modified Dutch auction.

The purchase price will be $820 to $870 for each $1,000 principal amount of notes tendered under the offer at the lowest price that will allow the company to purchase $50 million principal amount of the notes.

The offer will expire at midnight ET on June 18, and holders may withdraw tendered notes at any time before this deadline.

The offer is not conditioned on the receipt of financing but does require that a minimum of $20 million principal amount of notes be tendered under the offer, according to a company press release.

The company said that if tenders are received for less than $50 million of notes, it will accept all notes tendered at the highest price specified by the tendering holders within the offer range. If more than $50 million of notes are tendered at or below the purchase price, the company will accept notes tendered at or below the purchase price on a pro-rata basis.

Funding for the offer will come from cash on hand.

The company's directors and executive officers, including the chairman, chief executive officer and chief investment officer of value portfolios, Mario J. Gabelli, have not indicated whether they intend to tender their debentures in the offer, the release noted. As of May 16, Gabelli beneficially owned $45,772,300 principal amount of notes, and the other directors and executive officers beneficially owned, in total, an additional $1,599,700 principal amount of notes.

Computershare Trust Co., NA is the depositary. 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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