New Issue: Gabelli reduced $90 million mandatory convertibles at 6.95% yield, up 18%

By Ronda Fears

Nashville, Tenn., Feb. 1 - Gabelli Asset Management Inc. sold a reduced $90 million of three-year mandatory convertibles at par of 25 to yield 6.95% with an 18% initial conversion premium. Merrill Lynch & Co. was lead manager of the issue, which priced at the cheap end of guidance that put the yield between 6.5% and 7.0% and the premium at 18% to 22%. The deal was downsized from $110 million.

Proceeds will be used for general corporate purposes, according to the Rye, N.Y. asset management firm founded by high-profile stock picker Mario Gabelli.

Terms of the new deal are:

Issuer: Gabelli Asset Management Inc.

Amount: $90 million

Greenshoe: $5 million

Lead Manager: Merrill Lynch

Maturity Date: Feb. 15, 2005

Dividend: 6.95%

Issue Price: par, $25

Yield: 6.95%

Conversion Premium: 18%

Conversion Price: $37.40/$46.50

Conversion Ratio: 0.5376/0.6685

Call: non-callable

Settlement Date: Feb. 6

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