Eaton Vance Municipal Bond Fund Announces Extension of Tender Offer

Rhea-AI Summary

Eaton Vance Municipal Bond Fund (NYSE American: EIM) has announced an extension of its cash tender offer. The tender offer allows shareholders to sell up to 5% of the Fund's outstanding common shares at 98% of its net asset value (NAV) per share. The offer's expiration has been extended from January 9, 2025, to January 10, 2025, at 5:00 p.m. Eastern Time.

The extension is due to the closure of federal agencies and NYSE Group markets on January 9, 2025. Shareholders maintain the right to withdraw tendered shares until the new deadline. EQ Fund Solutions, serves as the information agent for the tender offer and can be contacted toll-free at 1-877-732-3614 for any questions.

Positive

• Tender offer provides shareholders liquidity opportunity at 98% of NAV
• 5% of outstanding common shares eligible for tender

Negative

• 2% discount to NAV on tendered shares represents a loss for selling shareholders

Insights

Fixed Income Analyst

The extension of EIM's tender offer by one day due to market closure is a minor administrative adjustment that warrants attention from current shareholders. The fund's commitment to repurchase up to 5% of outstanding shares at a 98% NAV represents a standard liquidity event for closed-end funds. This tender offer provides an exit opportunity for shareholders at a slight discount to NAV, which is more favorable than typical secondary market trading discounts. The timing extension is purely procedural due to the federal holiday closure and doesn't alter the fundamental terms or strategic implications of the tender offer. For context, tender offers in closed-end funds are routine corporate actions designed to address trading discounts and provide periodic liquidity windows.

The mechanics remain straightforward - shareholders can tender their shares until the new deadline and receive 98% of NAV, a price that's typically more attractive than selling in the open market where municipal bond closed-end funds often trade at wider discounts. The one-day extension ensures fair access despite the market holiday but doesn't materially impact the offer's value proposition.

BOSTON--(BUSINESS WIRE)-- Eaton Vance Municipal Bond Fund (NYSE American: EIM) (the “Fund”) announced today the extension of the Fund’s cash tender offer (the “Tender Offer”) for up to 5% of its outstanding common shares at a price per share equal to 98% of its net asset value (“NAV”) per share, determined as of the close of regular trading on the New York Stock Exchange on the day the Tender Offer expires. The Tender Offer, which was previously scheduled to expire on January 9, 2025 at 5:00 p.m. Eastern Time, will be extended to January 10, 2025 at 5:00 p.m. Eastern Time. Also, shareholders may withdraw tendered shares at any time prior to 5:00 p.m. Eastern Time on January 10, 2025.

The Fund has extended the Tender Offer in light of the recent executive order providing for the closure of federal agencies and offices on January 9, 2025 and the related closure of NYSE Group markets on that date.

The information agent for the Tender Offer is EQ Fund Solutions, LLC. Any questions with regard to the Tender Offer may be directed to the information agent toll-free at 1-877-732-3614.

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 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

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 Tender Offer was 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 has also made 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 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 which are, in some cases, beyond the Fund’s control and could cause actual results to differ materially from those set forth in the forward-looking statements. All forward-looking statements are as of the date of this release only; the Fund undertakes no obligation to update or review any forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250107013654/en/

Investor Contact: (800) 262-1122

Source: Eaton Vance Municipal Bond Fund

FAQ

What is the new expiration date for EIM's tender offer?

The tender offer has been extended to January 10, 2025, at 5:00 p.m. Eastern Time.

What percentage of EIM shares can be tendered in the offer?

The tender offer is for up to 5% of EIM's outstanding common shares.

What price will shareholders receive for tendered EIM shares?

Shareholders will receive 98% of the fund's net asset value (NAV) per share, determined at the close of regular trading on the expiration date.

Why did EIM extend its tender offer deadline?

The extension is due to the closure of federal agencies and NYSE Group markets on January 9, 2025.

Until when can shareholders withdraw their tendered EIM shares?

Shareholders can withdraw tendered shares until 5:00 p.m. Eastern Time on January 10, 2025.