By Stephanie N. Rotondo
Seattle, Sept. 14 – Ellsworth Growth and Income Fund Ltd. sold $30 million of 5.25% series A cumulative preferred shares (expected ratings: A1), according to a company-issued press release.
Price talk was 5.25% to 5.375%.
Morgan Stanley & Co. LLC is the bookrunner.
Dividends will be payable on a quarterly basis. The issue becomes redeemable in 2022 at par plus accrued dividends.
The preferreds also become mandatorily redeemable in certain circumstances.
The new preferred stock will be listed on the New York Stock Exchange under the ticker symbol “ECFPrA.”
Proceeds will be used to purchase portfolio securities in accordance with the company’s investment objectives and policies.
Ellsworth is a Morristown, N.J.-based diversified, closed-end management investment company.
Issuer: | Ellsworth Growth and Income Fund Ltd.
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Securities: | Series A cumulative preferred shares
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Amount: | $30 million, or 1.2 million shares
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Maturity: | Perpetual
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Bookrunner: | Morgan Stanley & Co. LLC
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Co-manager: | G.research LLC
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Dividend: | 5.25%
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Price: | Par of $25.00
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Yield: | 5.25%
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Talk: | 5.25% to 5.375%
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Call options: | In 2022, or mandatorily redeemable in certain circumstances, at par plus accrued dividends
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Pricing date: | Sept. 13
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Settlement date: | Sept. 18
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Expected ratings: | Moody’s: A1
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Expected listing: | NYSE: ECFPrA
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