Eaton Vance Floating-Rate Income Plus Fund Announces Results of Annual Meeting of Shareholders

Rhea-AI Summary

The Eaton Vance Floating-Rate Income Plus Fund (NYSE: EFF) announced the results of its annual shareholder meeting held on May 14, 2021. Shareholders approved the liquidation and termination of the Fund, effective June 18, 2021, with net asset values fixed based on holdings. Cash distributions will start around June 24, 2021, with a final distribution expected in October 2021. Additionally, four Class II trustees were elected. The Fund's shares will cease trading on June 18, 2021, and shareholders should consult tax advisors for implications of the liquidation.

Positive

• Shareholders approved the liquidation and termination of the Fund, allowing for cash distributions.
• First distribution expected to represent at least 95% of liquidation proceeds, anticipated on June 24, 2021.

Negative

• The Fund will cease trading on the NYSE on or about June 18, 2021, limiting market activity.
• Shareholder redemptions will generally be treated as a sale for federal income tax purposes, which may lead to tax implications.

BOSTON, May 14, 2021 /PRNewswire/ -- Eaton Vance Floating-Rate Income Plus Fund (NYSE: EFF) (the "Fund") announced today the results of the annual meeting of shareholders held on May 14, 2021.  Shareholders voted to approve the liquidation and termination of the Fund pursuant to the Plan of Liquidation and Termination (the "Plan") adopted by the Board of Trustees of the Fund.  Shareholders also voted to elect four Class II trustees.

Liquidation.  The Fund expects that, on June 18, 2021 (the "Effective Date"), the proportionate interests of shareholders in the net assets of the Fund will be fixed on the basis of their respective holdings at the close of business on the Effective Date.  The Fund expects the last day of secondary market trading of the Fund's shares will also be on or about June 18, 2021, and as such, prior to the opening of business on June 21, 2021, the Fund will cease trading on the New York Stock Exchange. 

Pursuant to the Plan, the Fund will commence the process of liquidating its portfolio in preparation for one or more distributions of cash to the shareholders of the Fund.  The distribution to shareholders of liquidation proceeds will occur as soon as practicable following the Effective Date.  The first distribution, which is expected to represent at least 95% of the liquidation proceeds, is currently expected to be made on or about June 24, 2021.  Due to anticipated delays in the liquidation and settlement of a small number of Fund holdings, the Fund currently expects to pay a second, final distribution in or around October 2021, although market, economic and other factors could result in an earlier or later final distribution date.  Beginning when the Fund commences liquidating its portfolio, the Fund may not pursue its stated investment objective, comply with its investment limitations or engage in normal business activities, except for the purposes of winding up its business and affairs, paying its liabilities and distributing its remaining assets to shareholders.   The Fund expects that, effective as of market close on or about June 18, 2021, the Fund's shares will no longer be actively traded in the secondary market, and there can be no assurance that there will thereafter be a market for the purchase or sale of the Fund's shares.

In connection with the Plan, all shares of the Fund outstanding on the Effective Date will be redeemed as of the close of business on the Effective Date without the imposition of any redemption transaction fees. The proceeds of such redemption will equal the net asset value of such shares after the Fund has paid or provided for all of its charges, taxes, expenses and liabilities, including certain operational costs of liquidating the Fund. The Fund must declare and distribute to shareholders any realized capital gains and all net investment income no later than the final liquidation distribution.  Eaton Vance Management, the Fund's investment adviser, intends to distribute substantially all of the Fund's net investment income at the time of, or prior to, the final liquidation.  The initial liquidation proceeds, which are expected to be distributed to shareholders on or about June 24, 2021, are expected to include any undistributed income that otherwise would have been included in the Fund's regular June distribution.

The Fund expects that shareholders will be able to sell their Fund shares in the secondary market until the market close on June 18, 2021. Customary brokerage charges may apply to such transactions.

Although the liquidation is not expected to be a taxable event for the Fund, the redemption of shares of the Fund on the Effective Date will generally be treated as a sale by shareholders for federal income tax purposes. Please consult your personal tax advisor about the potential tax consequences of the liquidation.

If you have any questions regarding the liquidation, please contact the Fund at 1-800-262-1122.

Trustee Election.  As described above, the Fund's common and preferred shareholders, voting together as a single class, voted to elect three Class II trustees, William H. Park, Keith Quinton and Susan J. Sutherland.  The Fund's preferred shareholders, voting separately as a single class, voted to elect one Class II Trustee, George J. Gorman.

Eaton Vance Corp. was acquired by Morgan Stanley on March 1, 2021. Its former Eaton Vance Management, Parametric, Atlanta Capital and Calvert investment affiliates are now part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley. 

Shares of closed-end funds often trade at a discount from their net asset value. The market price of Fund shares may vary from net asset value based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors' expectations for future distribution changes, the clarity of the Fund's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. The Fund is not a complete investment program and you may lose money investing therein. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully the Fund's investment objective, strategies, risks, charges and expenses.

This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at eatonvance.com.

Statements in this press release that are not historical facts may be forward-looking statements, as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that may be beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

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SOURCE Eaton Vance Management

FAQ

What is the effective date of the Eaton Vance Floating-Rate Income Plus Fund's liquidation?

The effective date of the liquidation is June 18, 2021.

When can shareholders expect to receive the first distribution from the liquidated Fund?

The first distribution is expected on or about June 24, 2021.

What happens to the shares of the Eaton Vance Floating-Rate Income Plus Fund after liquidation?

Shares will cease trading on the NYSE on or about June 18, 2021, and all shares will be redeemed without fees.

What are the tax implications for shareholders due to the Fund's liquidation?

The redemption of shares on the effective date will be treated as a sale for federal income tax purposes.