GAB - Gabelli Equity Trust Rights Offering

[rayfinkle]

Is anyone familiar with this situation? Rights offering w/ oversubscription rights. Gabelli behind it. $0.15 monthly dividend ($1.8 annualized) on a stock price of $7.50.

 

http://www.marketwatch.com/story/gabelli-equity-trust-announces-rights-offering-for-shares-of-common-stock-record-date-and-summary-of-terms-2014-08-26

[CorpRaider]

Might be interesting to watch once they are distributed as they will probably trade at only cents per right and probably lots of retail holders.  They just spun off another fund from this one I think, so re-raising capital. 

[cavrad]

• Record date shareholders who fully exercise their Primary Subscription Rights will be eligible for an over-subscription privilege entitling these shareholders to subscribe, subject to certain limitations and a pro-rata allotment, for any additional shares of common stock not purchased pursuant to the Primary Subscription. Rights acquired in the secondary market may not participate in the over-subscription privilege.
  
• The Rights are expected to trade “when issued” on the New York Stock Exchange beginning on September 16, 2014, and the Fund’s shares of common stock are expected to trade “Ex-Rights” on the New York Stock Exchange beginning on September 17, 2014. The Rights are expected to begin trading for normal settlement on the New York Stock Exchange on or about September 24, 2014.
  
• The Offering expires at 5:00 PM Eastern Time on October 20, 2014.
  

I need help parsing the rules above.  What does it mean for rights acquired in the secondary market?  How and when can they be exercised?