Saba Capital Reaches Agreements With Three Eaton Vance Closed-End Funds

Rhea-AI Summary

Saba Capital Management has reached an agreement with Eaton Vance Management concerning Eaton Vance Senior Income Trust (EVF), Eaton Vance Floating-Rate Income Trust (EFT), and Eaton Vance Senior Floating-Rate Trust (EFR). The Funds will conduct cash tender offers to repurchase up to 60%, 50%, and 50% of their outstanding shares at 99% of their net asset values (NAV). Additionally, conditional year-end tender offers for 10% of common shares at 98% of NAV will occur if specific discount conditions are met from 2022 to 2024.

Positive

• Increased liquidity for shareholders through cash tender offers.
• Tender offers at near NAV prices likely to reduce discounts.
• Conditional offers provide a safety net for shareholders in case of significant discounts.

Negative

• None.

Saba Capital Management, L.P. and certain associated parties (collectively “Saba”) today announced that it has reached an agreement with Eaton Vance Management with respect to each of Eaton Vance Senior Income Trust (NYSE: EVF), Eaton Vance Floating-Rate Income Trust (NYSE: EFT), and Eaton Vance Senior Floating-Rate Trust (NYSE: EFR) (the “Funds”).

Under the terms of the agreements, Eaton Vance Senior Income Trust, Eaton Vance Floating-Rate Income Trust, and Eaton Vance Senior Floating-Rate Trust will commence cash tender offers for up to 60%, 50%, and 50%, respectively, of the Funds’ outstanding shares of common stock at a price per share equal to 99% of the Funds’ respective net asset values (“NAV”) per share. The Funds will repurchase shares tendered and accepted in the tender offers in exchange for cash.

The Funds also agreed to three conditional year-end tender offers for up to 10% of their then outstanding common shares at 98% of NAV, in the event the average discount to the respective fund’s NAV from January 1 through August 31 of each of 2022, 2023, and 2024 exceeds 10% based on the respective fund’s volume-weighted average market price and NAV on the business days during such period. In addition, Saba has agreed to certain standstill covenants.

“We are pleased to have reached these agreements that benefit all shareholders,” said Pierre Weinstein, Partner and Portfolio Manager of Saba. “By providing all shareholders of the Funds with the opportunity to tender their shares at a price near the Funds’ NAVs, tendering shareholders will receive immediate liquidity at an attractive price, and non-tendering shareholders will benefit from a narrowing in the Funds’ discounts to NAV as well as the accretive nature of the tender being conducted at 99% of NAV.”

About Saba Capital

Saba Capital Management, L.P. is a registered investment adviser founded in 2009. Saba is a spin-out of a proprietary investing group founded by Boaz Weinstein at Deutsche Bank in 1998. Saba manages $3.3 billion across four core strategies: Credit Relative Value, Tail Hedge, SPACs and Closed-End Funds. Saba’s investors are predominantly institutions and include public and corporate pension plans, endowments and foundations, family offices, banks and insurers, bank private wealth platforms, fund of funds and certain high net worth individuals.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005965/en/

FAQ

What are the cash tender offers announced by Saba Capital for EVF, EFT, and EFR?

Saba Capital announced cash tender offers for up to 60% of EVF, 50% of EFT, and 50% of EFR at 99% of their net asset values (NAV).

When will the conditional year-end tender offers occur for Eaton Vance Funds?

The conditional year-end tender offers will occur if the average discount to NAV exceeds 10% from January 1 to August 31 of 2022, 2023, and 2024.

What is the purpose of the agreements between Saba Capital and Eaton Vance?

The agreements aim to provide liquidity to shareholders and reduce the discount to net asset values of the Funds.