GDL Fund : Declares $0.50 Quarterly Dividend For Its Series C Cumulative Puttable And Callable Preferred Shares

THE GDL FUND

One Corporate Center Rye, NY 10580-1422 t 914.921.5070

GABELLI.COM

For information: Laurissa Martire [phone]

DIVIDEND NOTICE

SERIES C PREFERRED SHARES

FOR IMMEDIATE RELEASE
Rye, New York	NYSE - GDL PrC
August 20, 2020	CUSIP - 361570401

THE GDL FUND

DECLARES $0.50 QUARTERLY DIVIDEND FOR ITS

SERIES C CUMULATIVE PUTTABLE AND CALLABLE PREFERRED SHARES

Rye, NY -- The Board of Trustees (the "Board") of The GDL Fund (NYSE:GDL) (the "Fund") declared a $0.50 per share cash distribution payable on September 28, 2020 to Series C preferred shareholders of record on September 21, 2020.

The Series C Preferred Shares, which trade on the New York Stock Exchange under the symbol "GDL Pr C", were issued on March 26, 2018 at $50.00 per share. The Series C Preferred pay distributions quarterly at an annualized dividend rate of 4.00% of the $50.00 per share liquidation preference of the Series C Preferred for the quarterly dividend periods ending on or prior to March 26, 2021 ("Year 3"). At least 30 days prior to the end of Year 3, the Fund's Board of Trustees will determine and publicly announce a reset fixed dividend rate that will apply for all remaining quarterly dividend periods prior to the mandatory redemption date for the Series C Preferred of March 26, 2025. The reset dividend rate will be determined by the Fund's Board of Trustees or a committee thereof in its sole discretion, and such rate will be not less than an annualized rate of 4.00% and not greater than an annualized rate of 6.00%.

The Series C Preferred may be put back to the Fund during the 30-day period prior to March 26, 2022 at the liquidation preference of $50.00 per share, plus any accumulated and unpaid dividends, and redeemed by the Fund, at its option, at the liquidation preference of $50.00 per share, plus any accumulated and unpaid dividends, on March 26, 2021 or March 26, 2023.

Part of the distribution may be treated as qualified dividend income for individuals, subject to the maximum federal income tax rate for long term capital gains, which is currently 20% in taxable accounts for individuals (or less depending on an individual's tax bracket). In addition, certain U.S. shareholders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare surcharge on their "net investment income", which includes dividends received from the Fund and capital gains from the sale or other disposition of shares of the Fund.

Short-term capital gains, qualified dividend income, and investment company taxable income, if any, will be allocated on a pro-rata basis to all distributions to preferred shareholders for the year. Based on the accounting records of the Fund currently available, each of the distributions paid to preferred shareholders in 2020 would be deemed 100% from paid-in capital on a book basis. This does not represent information for tax reporting purposes. The estimated components of each distribution are updated and provided to shareholders of record in a notice accompanying the distribution and are available on our website (www.gabelli.com). The final determination of the sources of all distributions in 2020 will be made after year end and can vary from the quarterly estimates. All individual shareholders with taxable accounts will receive written notification regarding the components and tax treatment for all 2020 distributions in early 2021 via Form 1099-DIV.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Fund before investing. More information regarding this and other information about the Fund is available by calling 800-GABELLI(800-422-3554) or visiting www.gabelli.com.

The GDL Fund is a diversified, closed-end management investment company with $188 million in total net assets whose investment objective is to achieve absolute returns in various market conditions without excessive risk of capital. The Fund is managed by Gabelli Funds, LLC, a subsidiary of GAMCO Investors, Inc. (NYSE:GBL).