Dividends on the Series B Preferred Stock offered hereby will be cumulative from September 24, 2003 at the annual rate of 5.95% of the liquidation preference of $25.00 per share and will be payable quarterly on March 24, June 24, September 24 and December 24 in each year, commencing December 24, 2003.
The Series B Preferred Stock may not be issued unless it is rated "Aaa" by Moody's Investors Service, Inc. In order to keep this rating, the composition of the Company's portfolio must reflect the guidelines established by Moody's, and the Company will be required to maintain a minimum discounted asset coverage ratio with respect to the Series B Preferred Stock. See "Description of Rating Agency Guidelines--Rating Agency Guidelines." The Company is also required to maintain the minimum asset coverage required by the Investment Company Act of 1940, as amended.
The Series B Preferred Stock is subject to mandatory redemption in whole or in part by the Company in the event that the Company fails to maintain a quarterly asset coverage of at least 200% as required by the 1940 Act or fails to maintain the discounted asset coverage required by Moody's. Commencing September 24, 2008 and any time thereafter, the Company, at its option, may redeem the Series B Preferred Stock in whole or in part. Prior to September 24, 2008, the Series B Preferred Stock will be redeemable, at the option of the Company, only to the extent necessary for the Company to continue to qualify for tax purposes as a regulated investment company. In the event the Company redeems the Series B Preferred Stock, the redemption will be for cash, at a redemption price equal to $25.00 per share plus accumulated but unpaid dividends (whether or not earned or declared). See "Description of Series B Preferred Stock -- Redemption" and "Description of Rating Agency Guidelines --Redemption."
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General American Investors is registered as a closed-end, diversified management investment company. The Fund's objective is long-term capital appreciation through investment in companies with above average growth potential. Preferred: GAM.PRB Open the GAM Information Page » |
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