BlackRock Municipal Income Fund, Inc. (MUI) Announces 2025 Repurchase Schedule and Initial Repurchase Amount in Connection with Upcoming Conversion to Unlisted Continuously-Offered Closed-End Fund

Rhea-AI Summary

BlackRock Municipal Income Fund (MUI) has announced additional details regarding its upcoming conversion from an exchange-listed closed-end fund to an unlisted continuously-offered closed-end fund. The conversion is scheduled to take place after market close on March 21, 2025, becoming effective March 24, 2025.

Key highlights include:

• The fund will be renamed to BlackRock Municipal Credit Alpha Portfolio
• The Board approved a 15% initial repurchase of outstanding shares for Q2 2025
• Repurchase price will be 100% of NAV as of May 30, 2025
• Portfolio realignment will begin March 3, 2025

Shareholders are advised to contact their financial intermediaries promptly, as not all intermediaries will support quarterly repurchase offers or continue offering shares of the converted interval fund.

Positive

• 15% initial share repurchase offer provides significant liquidity opportunity
• 100% NAV repurchase price ensures fair value for exiting shareholders

Negative

• Delisting from NYSE may reduce trading liquidity
• Not all financial intermediaries will support quarterly repurchases
• access to shares through select financial intermediaries only

Insights

Financial Analyst

The announced conversion of BlackRock Municipal Income Fund (MUI) to an unlisted interval fund structure represents a significant structural transition with important implications for current shareholders. The 15% initial repurchase amount for Q2 2025 is notably higher than the typical 5% minimum required for interval funds, suggesting BlackRock anticipates substantial redemption interest following the conversion.

This structural change fundamentally alters the liquidity profile of the investment. While MUI currently trades daily on the NYSE (potentially at a discount or premium to NAV), after March 24th, shareholders will only have quarterly opportunities to sell shares directly back to the fund at NAV. This elimination of secondary market trading removes both the discount/premium dynamic and intraday liquidity.

The portfolio realignment beginning March 3rd signals BlackRock is shifting investment strategies, likely toward less liquid municipal securities that may offer higher yields but wouldn't be appropriate for a daily-traded vehicle. Shareholders using platforms that won't support the new structure face a de facto forced liquidation before conversion.

For remaining investors, the interval structure offers potential advantages: elimination of persistent NAV discounts, reduced selling pressure during market stress (benefiting long-term holders), and access to higher-yielding, less liquid municipal securities typically unavailable in traditional closed-end funds.

Investment Strategist

This structural conversion from a NYSE-listed closed-end fund to an unlisted interval fund fundamentally changes the investment proposition for MUI shareholders. The generous 15% initial repurchase capacity indicates BlackRock anticipates significant redemption demand while providing an orderly exit mechanism that doesn't require selling at potentially steep discounts in the secondary market.

The transition to an interval fund structure allows the manager to pursue municipal credit alpha strategies with less concern about NAV volatility driving secondary market discounts. Without daily liquidity constraints, the portfolio can invest in higher-yielding municipal opportunities that may have been previously off-limits, potentially enhancing long-term returns for patient investors.

Critical for shareholders is the revelation that not all financial intermediaries will support the new structure or facilitate the quarterly repurchase mechanisms. This creates a significant decision point that many investors might overlook - your ability to remain invested depends entirely on your brokerage platform's capabilities.

The March 3rd portfolio transition date warrants close attention, as this realignment ahead of the formal conversion will likely impact NAV and potentially market price in the weeks before delisting. For investors seeking municipal exposure, this conversion represents a meaningful decision point: accept the new -liquidity structure with potentially enhanced yield opportunities, or exit before the conversion by selling on the open market or participating in the initial repurchase offer.

NEW YORK--(BUSINESS WIRE)-- BlackRock Municipal Income Fund, Inc. (NYSE: MUI, the “Fund”) is providing additional information related to the Fund’s upcoming conversion from an exchange-listed closed-end fund to an unlisted continuously-offered closed-end fund that conducts quarterly repurchases of its shares (the “Conversion”) and will operate under the name BlackRock Municipal Credit Alpha Portfolio, Inc. (the “Interval Fund”).

Today, the Board of Directors of MUI, (the “Board”) approved a repurchase schedule for calendar year 2025. In addition, the Board approved an initial repurchase amount of 15% of the Interval Fund’s outstanding shares for the first quarterly repurchase offer, to be conducted in Q2 2025.

2025 Share Repurchase Schedule

The below table provides shareholders with information regarding share repurchases of the Interval Fund. The below table is intended to provide the repurchase schedule for the calendar year ending December 31, 2025.

	Q2 2025	Q3 2025	Q4 2025
Commencement/Mailing Date	4/30/2025	7/8/2025	10/7/2025
Repurchase Request Deadline / Anticipated Repurchase Pricing Date	5/30/2025	8/7/2025	11/6/2025
Repurchase Payment Deadline	6/6/2025	8/14/2025	11/13/2025

Q2 2025 Repurchase Amount

The Board approved an initial repurchase amount of 15% of outstanding shares of the Interval Fund, as of 5/30/2025. The repurchase price will be 100% of the NAV on 5/30/2025.

Portfolio Realignment in Advance of the Conversion

As previously announced, it is currently anticipated that the Conversion will take place after the close of business on March 21, 2025, and be effective on March 24, 2025 (the “Conversion Date”). In connection with the Conversion, the Fund intends to begin transitioning its portfolio to align with the Interval Fund’s investment strategies beginning on March 3, 2025.

The Conversion Date is subject to change, and any such change will be announced via press release.

Important Notice to Shareholders Who Hold Shares Through a Financial Intermediary

Following the Conversion, the Interval Fund will offer one or more classes of shares through select financial intermediaries. Shareholders should be aware that not all financial intermediaries will offer to sell shares of the Interval Fund or support quarterly repurchase offers by the Interval Fund.

SHAREHOLDERS SHOULD CONTACT THEIR FINANCIAL INTERMEDIARY AS SOON AS POSSIBLE TO CONFIRM WHETHER THEIR INTERMEDIARY WILL SUPPORT QUARTERLY REPURCHASE OFFERS AND WHAT, IF ANY, EFFECT THE CONVERSION WILL HAVE ON THE SHAREHOLDER’S ACCOUNT.

Additional Resources Regarding the Conversion:

PRESS RELEASE – February 14, 2025:
BlackRock Municipal Income Fund, Inc. (MUI) Delists from the NYSE in connection with the conversion to an unlisted interval fund structure

PRESS RELEASE - November 18, 2024:
BlackRock Municipal Income Fund, Inc. (MUI) Announces Final Results of Tender Offer

SEC Filing – October 16, 2024:
SEC Registration Filing for BlackRock Municipal Credit Alpha Portfolio (MUNEX)

PRESS RELEASE - June 7, 2024:
BlackRock Municipal Income Fund, Inc. (MUI) Approves Conversion to Unlisted Closed-End Interval Fund Structure

Important Notice

This press release is for informational purposes only and shall not constitute a recommendation, an offer to purchase or a solicitation of an offer to sell any common shares of the Fund.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate

Availability of Fund Updates

BlackRock will update performance and certain other data for the Fund on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Fund. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this release.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

With respect to the Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.

Annual and Semi-Annual Reports and other regulatory filings of the Fund with the SEC are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Fund. The information contained on BlackRock’s website is not a part of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250228269000/en/

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Source: BlackRock Closed-End Funds

FAQ

When will BlackRock Municipal Income Fund (MUI) convert to an interval fund?

MUI will convert after market close on March 21, 2025, with the conversion becoming effective on March 24, 2025.

What percentage of shares will MUI repurchase in its first quarterly repurchase offer?

The initial repurchase amount will be 15% of outstanding shares, scheduled for Q2 2025.

What will be the repurchase price for MUI shares in the Q2 2025 repurchase offer?

The repurchase price will be 100% of the Net Asset Value (NAV) as of May 30, 2025.

When will MUI begin transitioning its portfolio for the interval fund conversion?

The fund will begin transitioning its portfolio to align with the Interval Fund's investment strategies on March 3, 2025.

What will be MUI's new name after the conversion?

The fund will operate under the name BlackRock Municipal Credit Alpha Portfolio, Inc.