BlackRock Municipal Income Fund, Inc. (MUI) Announces Tender Offer in Conjunction with Conversion to an Unlisted Closed-End Interval Fund Structure
BlackRock Advisors, announced that BlackRock Municipal Income Fund, Inc. (NYSE: MUI) will commence a tender offer on October 15, 2024, to purchase up to 50% of its outstanding common shares at 98% of the Fund's net asset value (NAV) per share. The offer will expire on November 15, 2024, unless extended. If oversubscribed, shares will be purchased on a pro rata basis.
This tender offer is in conjunction with the Fund's previously announced conversion from an exchange-listed, closed-end fund to an unlisted closed-end interval fund. The conversion is expected to occur in the first quarter of 2025. Following the tender offer, MUI's shares will continue trading on the NYSE until the effective date of delisting, which will be announced later.
Shareholders who don't wish to hold shares after the conversion can sell on the NYSE before the effective date. Post-conversion, shares will not trade on a stock exchange, limiting selling options to the Fund's quarterly repurchase offers of 5% to 25% of outstanding shares.
BlackRock Advisors ha annunciato che BlackRock Municipal Income Fund, Inc. (NYSE: MUI) avvierà un offerta di acquisto il 15 ottobre 2024, per acquistare fino al 50% delle sue azioni ordinarie in circolazione al 98% del valore netto degli attivi (NAV) per azione del Fondo. L'offerta scadrà il 15 novembre 2024, salvo proroga. In caso di sovraccollocamento, le azioni saranno acquistate su base pro rata.
Questa offerta di acquisto è in concomitanza con la conversione del Fondo da un fondo chiuso quotato in borsa a un fondo chiuso a intervallo non quotato, precedentemente annunciata. La conversione è prevista per il primo trimestre del 2025. Dopo l'offerta di acquisto, le azioni di MUI continueranno a essere scambiate sulla NYSE fino alla data effettiva di delisting, che sarà annunciata successivamente.
Gli azionisti che non desiderano detenere azioni dopo la conversione possono vendere sulla NYSE prima della data effettiva. Dopo la conversione, le azioni non saranno negoziate su un mercato azionario, limitando le opzioni di vendita alle offerte di riacquisto trimestrali del Fondo, che variano dal 5% al 25% delle azioni in circolazione.
BlackRock Advisors anunció que BlackRock Municipal Income Fund, Inc. (NYSE: MUI) comenzará una oferta de adquisición el 15 de octubre de 2024, para comprar hasta el 50% de sus acciones ordinarias en circulación al 98% del valor neto de los activos (NAV) por acción del Fondo. La oferta expirará el 15 de noviembre de 2024, a menos que se prorrogue. Si se supera la suscripción, las acciones se comprarán sobre una base prorrata.
Esta oferta de adquisición está en conjunto con la conversión del Fondo de un fondo cerrado cotizado en bolsa a un fondo cerrado de intervalo no cotizado previamente anunciada. Se espera que la conversión ocurra en el primer trimestre de 2025. Después de la oferta de adquisición, las acciones de MUI continuarán negociándose en la NYSE hasta la fecha efectiva de desaprobación, que se anunciará más adelante.
Los accionistas que no deseen mantener acciones después de la conversión pueden vender en la NYSE antes de la fecha efectiva. Después de la conversión, las acciones no se negociarán en una bolsa de valores, limitando las opciones de venta a las ofertas de recompra trimestrales del Fondo, que van del 5% al 25% de las acciones en circulación.
블랙록 어드바이저스는 블랙록 시티즌 인컴 펀드, Inc. (NYSE: MUI)가 2024년 10월 15일에 공식 매입 제안을 시작하여 해당 펀드의 발행 주식의 최대 50%를 펀드의 주당 순자산 가치(NAV)의 98%로 구매할 것이라고 발표했습니다. 제안서는 2024년 11월 15일에 만료되며 연장되지 않는 한 유효합니다. 초과 청약으로 주식이 많이 들어온 경우, 주식은 비율에 따라 구매됩니다.
이 매입 제안은 펀드의 기존 발표된 상장 폐쇄형 펀드에서 비상장 폐쇄형 인터벌 펀드로의 전환과 함께 시행됩니다. 전환은 2025년 첫 분기에 발생할 것으로 예상됩니다. 매입 제안 이후, MUI의 주식은 나중에 발표될 상장 폐지의 효력 발생일 전까지 NYSE에서 계속 거래됩니다.
전환 후 주식을 보유하고 싶지 않은 주주들은 효력 발생일 이전에 NYSE에서 주식을 판매할 수 있습니다. 전환 이후 주식은 증권 거래소에서 거래되지 않으며, 펀드의 5%에서 25%에 해당하는 분기별 재매입 제안으로 판매 옵션이 제한됩니다.
BlackRock Advisors a annoncé que BlackRock Municipal Income Fund, Inc. (NYSE: MUI) lancera une offre d'achat le 15 octobre 2024, pour acheter jusqu'à 50 % de ses actions ordinaires en circulation à 98 % de la valeur nette des actifs (NAV) par action du Fonds. L'offre expirera le 15 novembre 2024, sauf prolongation. En cas de sursouscription, les actions seront achetées au prorata.
Cette offre d'achat est en lien avec la conversion du Fonds d'un fonds fermé coté en bourse à un fonds fermé à intervalles non coté déjà annoncée. La conversion devrait avoir lieu au premier trimestre de 2025. Après l'offre d'achat, les actions de MUI continueront d'être négociées à la NYSE jusqu'à la date effective du retrait de la cote, qui sera annoncée ultérieurement.
Les actionnaires qui ne souhaitent pas conserver d'actions après la conversion peuvent vendre à la NYSE avant la date effective. Après la conversion, les actions ne seront plus échangées sur une bourse, ce qui limitera les options de vente aux offres de rachat trimestrielles du Fonds, qui varient de 5 % à 25 % des actions en circulation.
BlackRock Advisors hat angekündigt, dass BlackRock Municipal Income Fund, Inc. (NYSE: MUI) am 15. Oktober 2024 ein Übernahmeangebot starten wird, um bis zu 50% seiner ausstehenden Stammaktien zum 98% des Nettoinventarwerts (NAV) pro Aktie des Fonds zu kaufen. Das Angebot läuft am 15. November 2024 ab, es sei denn, es wird verlängert. Bei Überzeichnung werden die Aktien anteilig erworben.
Dieses Übernahmeangebot steht im Zusammenhang mit der zuvor angekündigten Umwandlung des Fonds von einem an der Börse notierten geschlossenen Fonds zu einem nicht börsennotierten geschlossenen Intervallfonds. Die Umwandlung wird voraussichtlich im ersten Quartal 2025 stattfinden. Nach dem Übernahmeangebot werden die Aktien von MUI weiterhin an der NYSE gehandelt, bis das Datum der Delistung bekannt gegeben wird.
Aktionäre, die nach der Umwandlung keine Aktien halten möchten, können vor dem wirksamen Datum an der NYSE verkaufen. Nach der Umwandlung werden die Aktien nicht mehr an einer Börse gehandelt, wodurch die Verkaufsoptionen auf die vierteljährlichen Rückkaufangebote des Fonds von 5% bis 25% der ausstehenden Aktien beschränkt werden.
- Tender offer provides an opportunity for shareholders to sell up to 50% of their shares at a slight discount to NAV
- Conversion to an interval fund structure may provide more stable asset base for the fund
- Tender offer price is at a 2% discount to NAV
- Potential pro-rata allocation if the tender offer is oversubscribed
- Conversion to unlisted interval fund structure will reduce liquidity for remaining shareholders
- Post-conversion, shareholders will have options to sell shares outside of quarterly repurchase offers
Insights
The announcement of MUI's tender offer and planned conversion to an interval fund structure is a significant development for shareholders. The tender offer to purchase up to
The conversion to an unlisted interval fund structure marks a fundamental change in the Fund's liquidity profile. While interval funds offer periodic repurchases (between
Investors should carefully consider their liquidity needs and investment goals. The tender offer pricing and potential pro-rata allocation add complexity to decision-making. The planned Q1 2025 conversion timeline gives shareholders time to evaluate options, but also creates uncertainty in the interim period.
The tender offer and conversion process involve significant regulatory considerations. BlackRock must comply with SEC regulations governing tender offers, including filing a Schedule TO and providing detailed disclosures to shareholders. The conversion to an interval fund structure will require additional regulatory filings and approvals.
Shareholders should pay close attention to the Offer to Purchase and related documents, which will contain important information about tender offer terms, pro-rata allocation procedures and tax implications. The Fund's emphasis on urging shareholders to read these materials underscores their legal importance.
The planned delisting from NYSE and transition to an unlisted structure raises potential governance and shareholder rights issues. Investors should evaluate how this change might affect their ability to influence fund management and exercise typical shareholder rights in the new interval fund structure.
The Tender Offer will expire on November 15, 2024 at 5:00 p.m. Eastern Time, unless otherwise extended. The Fund will purchase its shares from tendering shareholders at a price equal to
The terms and conditions of the Fund’s tender offer will be set forth in an Offer to Purchase, a related Letter of Transmittal, and related documents, which will be distributed to the Fund's common shareholders. The Fund will file a Tender Offer Statement on Schedule TO with the
As previously announced, the Fund will be converting from an exchange-listed, closed-end fund to an unlisted closed-end fund that conducts periodic repurchases of its shares, also known as an interval fund (the “Conversion”). Following completion of the Tender Offer, the Fund’s common shares will continue to trade on the NYSE prior to the Conversion until the effective date of the Fund’s delisting from the NYSE, which will be announced at a later date. It is currently expected that the Conversion will occur in the first quarter of 2025, on such date as will be announced by the Fund at a later date. Shareholders who continue to hold common shares of the Fund following the completion of the Tender Offer, but who do not wish to hold shares of the Fund following the Conversion to an unlisted interval fund, may sell their shares in the normal course on the NYSE prior to the effective date of the Conversion. Please note that, following the Conversion, the Fund’s common shares will no longer trade on a stock exchange and shareholders will therefore have limited options to sell their shares outside of the Fund’s quarterly offers to repurchase between
IMPORTANT NOTICE
This press release is for informational purposes only and is not a recommendation, an offer to purchase or a solicitation of an offer to sell any securities of the Fund and the above statements are not intended to constitute an offer to participate in any tender offer. Any offer to purchase Fund common shares will be made pursuant to an offer on Schedule TO. COMMON SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER MATERIALS, INCLUDING THE OFFER TO PURCHASE AND ANY SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE TENDER OFFER, AS THEY MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, WHEN THEY ARE FILED AND BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF COMMON SHARES SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Common shareholders may obtain a free copy of any of these statements and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to 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 Securities and Exchange Commission (“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.
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Source: BlackRock Closed-End Funds
FAQ
When will BlackRock Municipal Income Fund (MUI) commence its tender offer?
What percentage of MUI's outstanding common shares will be purchased in the tender offer?
At what price will MUI purchase shares in the tender offer?
When is MUI expected to convert to an unlisted closed-end interval fund?
How often will MUI offer to repurchase shares after converting to an interval fund?
