Eaton Vance Municipal Bond Fund Announces Commencement of Tender Offer
Eaton Vance Municipal Bond Fund (EIM) has announced a cash tender offer for up to 5% of its outstanding common shares. The offer price will be 98% of the fund's net asset value per share, determined at the close of trading on the expiration date of January 9, 2025.
If the tender offer is oversubscribed, shares will be purchased on a pro-rata basis. During the tender offer period, the Fund may sell portfolio instruments to raise cash, potentially resulting in a temporarily higher cash position. The Fund reserves the right not to accept tendered shares under various circumstances as detailed in the offering materials.
Il Fondo Obbligazionario Municipale Eaton Vance (EIM) ha annunciato un'offerta di acquisto in contante per un massimo del 5% delle sue azioni ordinarie in circolazione. Il prezzo dell'offerta sarà pari al 98% del valore netto delle attività per azione del fondo, determinato alla chiusura delle contrattazioni nella data di scadenza del 9 gennaio 2025.
Se l'offerta è sovrascritta, le azioni saranno acquistate su base pro-rata. Durante il periodo dell'offerta, il Fondo potrebbe vendere strumenti del portafoglio per raccogliere liquidità, con conseguente potenziale aumento temporaneo della posizione di liquidità. Il Fondo si riserva il diritto di non accettare le azioni offerte in determinati casi come dettagliato nei materiali dell'offerta.
El Fondo de Bonos Municipales Eaton Vance (EIM) ha anunciado una oferta de compra en efectivo por hasta el 5% de sus acciones ordinarias en circulación. El precio de la oferta será del 98% del valor neto de los activos por acción del fondo, determinado al cierre de las operaciones en la fecha de caducidad del 9 de enero de 2025.
Si la oferta es sobredemandada, las acciones se comprarán de manera prorrateada. Durante el período de la oferta, el Fondo puede vender instrumentos de su cartera para recaudar efectivo, lo que podría resultar en una posición de efectivo temporalmente más alta. El Fondo se reserva el derecho de no aceptar las acciones ofrecidas en diversas circunstancias como se detalla en los materiales de la oferta.
이튼 반스 지방 채권 펀드 (EIM)는 자사의 발행된 보통주 5%에 해당하는 현금 입찰 제안을 발표했습니다. 제안 가격은 기한이 만료되는 날의 거래 종료 시점에서 자산 순 가치를 기준으로 98%이 될 것입니다 2025년 1월 9일.
입찰 제안이 초과 구독될 경우, 주식은 비율에 따라 구매될 것입니다. 입찰 제안 기간 동안, Fund는 현금을 조달하기 위해 포트폴리오 기구를 매각할 수 있으며, 이로 인해 일시적으로 현금 위치가 높아질 수 있습니다. Fund는 제공된 주식을 다양한 상황에 따라 수용하지 않을 권리를 보유합니다. 이는 제안 자료에 자세히 설명되어 있습니다.
Le Fonds de Titres Municipaux Eaton Vance (EIM) a annoncé une offre de rachat en espèces portant sur un maximum de 5% de ses actions ordinaires en circulation. Le prix de l'offre sera de 98% de la valeur nette d'inventaire par action du fonds, déterminé à la clôture des échanges à la date d'expiration du 9 janvier 2025.
Si l'offre est sursouscrite, les actions seront achetées sur une base pro-rata. Pendant la période de l'offre, le Fonds peut vendre des instruments de son portefeuille pour lever des liquidités, ce qui pourrait entraîner une position de liquidités temporairement plus élevée. Le Fonds se réserve le droit de ne pas accepter les actions proposées dans diverses circonstances, comme détaillé dans les documents d'offre.
Eaton Vance Municipal Bond Fund (EIM) hat ein Barangebot für bis zu 5% seiner ausgegebenen Stammaktien bekannt gegeben. Der Angebotspreis wird 98% des Nettovermögenswerts pro Aktie des Fonds betragen, der zum Ende des Handels am Ablaufdatum 9. Januar 2025 bestimmt wird.
Wenn das Angebot überzeichnet ist, werden die Aktien im Verhältnis gekauft. Während der Angebotsfrist kann der Fonds Portfolioinstrumente verkaufen, um Liquidität zu beschaffen, was vorübergehend zu einer höheren Liquiditätsposition führen kann. Der Fonds behält sich das Recht vor, angebotene Aktien unter verschiedenen Umständen, wie in den Angebotsunterlagen detailliert beschrieben, nicht zu akzeptieren.
- Shareholders have opportunity to sell shares at 98% of NAV
- Tender offer provides liquidity option for up to 5% of outstanding shares
- Tender offer price represents a 2% discount to NAV
- No guarantee all tendered shares will be purchased if offer is oversubscribed
- Potential portfolio restructuring costs due to asset sales
- Higher cash position may impact fund performance during tender period
Insights
The tender offer announcement from Eaton Vance Municipal Bond Fund represents a significant development for shareholders. The fund is offering to purchase up to 5% of outstanding shares at 98% of NAV, providing a structured exit opportunity for investors seeking liquidity. The
This strategic move could help address any trading discount to NAV and potentially support the fund's market price. However, investors should note the pro-rata allocation if oversubscribed, meaning full tender requests may not be fulfilled. The temporary increase in cash holdings during the offer period could impact short-term performance, as municipal bonds typically offer higher yields than cash equivalents.
The timing and structure of this tender offer merit attention. With the offer extending to January 2025, it provides a lengthy window for shareholders to evaluate their positions. The potential portfolio rebalancing to raise cash could create temporary market impact in municipal bond sectors where the fund holds significant positions. This type of corporate action typically aims to narrow persistent NAV discounts and enhance shareholder value.
The pro-rata mechanism ensures fair treatment but may result in shareholders retaining more shares than they intended to sell. Market participants should monitor trading patterns as some investors might seek to acquire shares ahead of the tender deadline to participate in the offer.
The Fund may sell portfolio instruments during the pendency of its Tender Offer to raise cash for the purchase of common shares. If so, it is likely that during the pendency of the Tender Offer, and possibly for a short time thereafter, the Fund will hold a greater than normal percentage of its net assets in cash and cash equivalents.
The Tender Offer is being made on the terms and subject to the conditions set forth in the Fund’s tender offer statement on Schedule TO (including an offer to purchase, a related letter of transmittal and other offer documents) that has been filed with the Securities and Exchange Commission (the “SEC”). All of these documents contain important information about the Tender Offer. Shareholders of the Fund should read the documents carefully as they contain important information about the Tender Offer. Shareholders of the Fund can obtain a free copy of the documents at the SEC’s website at www.sec.gov or from the Fund by calling EQ Fund Solutions, LLC, the Fund’s information agent for the tender offer, at (877) 732-3614.
This press release is not a recommendation, an offer to purchase, or a solicitation of an offer to sell shares of the Fund and is not a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
About the Fund
Except for sales of shares pursuant to a tender offer, common shares of the Fund are available for purchase or sale only through secondary market trading at their current market price. Shares of closed-end funds (such as the Fund) often trade at a discount from their NAV. The market price of Fund shares may vary from NAV 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. Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors. Before investing in the Fund, prospective investors should consider carefully the Fund’s investment objective, strategies, risks, charges and expenses.
Eaton Vance is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
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Important Notice
This announcement is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of the Fund. The Tender Offer will be made only by an offer to purchase, a related letter of transmittal and other documents filed with the SEC as exhibits to a tender offer statement on Schedule TO, with all such documents available on the SEC’s website at www.sec.gov. For the Tender Offer, the Fund will also make available to shareholders without charge the offer to purchase and the letter of transmittal. Shareholders should read these documents carefully, as they contain important information about the Tender Offer.
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 are “forward-looking statements” as defined by the
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Investor Contact: (800) 262-1122
Source: Eaton Vance Municipal Bond Fund
FAQ
When does Eaton Vance Municipal Bond Fund (EIM) tender offer expire?
What percentage of EIM shares will be purchased in the tender offer?
What is the purchase price for EIM shares in the tender offer?
What happens if EIM's tender offer is oversubscribed?
