Eaton Vance Municipal Bond Fund Announces Firm and Conditional Tender Offers
The Eaton Vance Municipal Bond Fund (EIM) announced a cash tender offer for up to 20% of its outstanding common shares at 98% of the Fund's net asset value. The Firm Tender Offer is set to begin on June 7, 2024, with additional conditional tender offers based on trading conditions. Shareholders have the opportunity to sell their shares back to the Fund at a premium.
The Firm Tender Offer allows shareholders to potentially realize a profit by selling shares back at a premium.
There is no guarantee that the Fund will purchase all of a shareholder's common shares tendered in any of the Tender Offers.
The Board also authorized the Fund to conduct two conditional cash tender offers to follow the Firm Tender Offer, provided certain conditions are met. Specifically, on the date of the close of the Firm Tender Offer, the Fund will announce via press release the commencement of a four-month period. If, during such period, the Fund’s common shares trade at an average discount to NAV of more than
The Fund will announce via press release the commencement of a second four-month period, commencing on the first business day after the nine-month anniversary of the commencement of the Firm Tender Offer. If, during such period, the Fund’s common shares trade at an average discount to NAV of more than
Additional terms and conditions of each Tender Offer will be set forth in the Fund’s offering materials filed with the
About Eaton Vance
Eaton Vance applies in-depth fundamental analysis to the active management of equity, income, alternative and multi-asset strategies. Eaton Vance’s investment teams follow time-tested principles of investing that emphasize ongoing risk management, tax management (where applicable) and the pursuit of consistent long-term returns. The firm’s investment capabilities encompass the global capital markets. Eaton Vance is a part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
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.
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 Fund has not commenced the Firm Tender Offer described in this press release, and the Conditional Tender Offer(s) will not be completed unless the prescribed conditions are met. The Tender Offer(s) 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 each 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 will contain important information about the relevant 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 www.eatonvance.com.
Statements in this press release that are not historical facts are forward-looking statements as defined by the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240506121617/en/
Investor Contact: (800) 262-1122
Source: Eaton Vance Municipal Bond Fund
FAQ
What is the price per share for the common shares in the Tender Offers?
When is the Firm Tender Offer expected to begin?
What happens if the Fund's common shares trade at an average discount to NAV of more than 7.5%?
How long will shareholders have to participate in the Tender Offers?
What will happen if the number of common shares tendered exceeds the maximum amount of the Tender Offer?