Eaton Vance Municipal Bond Fund Announces Measurement Period for Initial Conditional Tender Offer
Eaton Vance Municipal Bond Fund (NYSE American: EIM) has initiated a four-month measurement period starting July 9, 2024, for a potential conditional tender offer. If the Fund's common shares trade at an average discount to NAV exceeding 7.5% during this period, the Fund will execute a tender offer for up to 5% of its outstanding shares at 98% of NAV. The measurement period ends on November 8, 2024. The offer's terms will be detailed in filings with the SEC and communicated to shareholders. Should the number of shares tendered exceed the maximum, purchases will be made on a pro-rata basis. Further details will follow in subsequent press releases and official documents.
- The Fund is prepared to conduct a tender offer if shares trade at a significant discount, potentially benefiting shareholders.
- The offer could improve liquidity by buying back up to 5% of outstanding shares at 98% of NAV.
- The Fund's shares are currently trading at a discount greater than 7.5% to NAV, indicating potential market concern.
- Only up to 5% of shares will be purchased, which may not satisfy all tendering shareholders.
If the conditions of the First Trigger Event are met, then additional terms and conditions of the Initial Conditional Tender Offer will be set forth in the Fund’s offering materials filed with the
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.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and
About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.
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 Initial Conditional Tender Offer will not be conducted unless the prescribed conditions are met. If the conditions of the First Trigger Event are met, the Initial Conditional 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. The Fund will then 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 Initial Conditional 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
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