BlackRock Municipal Income Fund, Inc. (MUI) Completes Conversion to Interval Fund Structure
BlackRock Municipal Income Fund (MUI) has successfully completed its conversion from an exchange-listed closed-end fund to an unlisted continuously-offered interval fund. The fund will now operate as BlackRock Municipal Credit Alpha Portfolio, Inc. with quarterly share repurchase offerings.
As part of the conversion process, shareholders of record will receive one share of the Institutional Share Class (MUNEX) for each MUI share they own. The conversion was executed on March 21, 2025, following several key events including the fund's delisting from NYSE, final distribution declaration, and establishment of the 2025 repurchase schedule.
Shareholders holding shares through financial intermediaries are advised to contact their providers to confirm support for quarterly repurchase offers and understand potential impacts on their accounts, as not all intermediaries will offer or support the new interval fund structure.
Il BlackRock Municipal Income Fund (MUI) ha completato con successo la sua conversione da un fondo chiuso quotato in borsa a un fondo di intervallo offerto continuamente non quotato. Il fondo opererà ora come BlackRock Municipal Credit Alpha Portfolio, Inc. con offerte di riacquisto di azioni trimestrali.
Come parte del processo di conversione, gli azionisti registrati riceveranno un'azione della Classe di Azioni Istituzionale (MUNEX) per ogni azione MUI che possiedono. La conversione è stata eseguita il 21 marzo 2025, dopo diversi eventi chiave tra cui la delisting del fondo dalla NYSE, la dichiarazione finale della distribuzione e l'istituzione del programma di riacquisto per il 2025.
Si consiglia agli azionisti che detengono azioni tramite intermediari finanziari di contattare i propri fornitori per confermare il supporto per le offerte di riacquisto trimestrali e comprendere i potenziali impatti sui loro conti, poiché non tutti gli intermediari offriranno o supporteranno la nuova struttura del fondo di intervallo.
El BlackRock Municipal Income Fund (MUI) ha completado con éxito su conversión de un fondo cerrado cotizado en bolsa a un fondo de intervalo ofrecido continuamente no cotizado. El fondo ahora operará como BlackRock Municipal Credit Alpha Portfolio, Inc. con ofertas de recompra de acciones trimestrales.
Como parte del proceso de conversión, los accionistas registrados recibirán una acción de la Clase de Acciones Institucionales (MUNEX) por cada acción de MUI que posean. La conversión se llevó a cabo el 21 de marzo de 2025, tras varios eventos clave, incluida la exclusión del fondo de la NYSE, la declaración final de distribución y el establecimiento del programa de recompra para 2025.
Se aconseja a los accionistas que poseen acciones a través de intermediarios financieros que se pongan en contacto con sus proveedores para confirmar el apoyo a las ofertas de recompra trimestrales y comprender los posibles impactos en sus cuentas, ya que no todos los intermediarios ofrecerán o apoyarán la nueva estructura del fondo de intervalo.
블랙록 지방채 소득 펀드 (MUI)는 상장 폐쇄형 펀드에서 비상장 지속 제공 간격 펀드로 성공적으로 전환되었습니다. 이 펀드는 이제 블랙록 지방신용 알파 포트폴리오, Inc.로 운영되며 분기별 주식 재매입 제안을 제공합니다.
전환 과정의 일환으로, 등록된 주주들은 자신이 소유한 MUI 주식 1주당 기관 주식 클래스 (MUNEX) 1주를 받게 됩니다. 이 전환은 2025년 3월 21일에 시행되었으며, NYSE에서의 상장 폐지, 최종 배당 선언, 2025년 재매입 일정 수립 등 여러 주요 사건들이 있었습니다.
금융 중개인을 통해 주식을 보유한 주주들은 분기별 재매입 제안에 대한 지원을 확인하고 자신의 계좌에 미칠 수 있는 잠재적 영향을 이해하기 위해 제공업체에 연락할 것을 권장합니다. 모든 중개인이 새로운 간격 펀드 구조를 제공하거나 지원하지는 않을 수 있습니다.
Le BlackRock Municipal Income Fund (MUI) a réussi sa conversion d'un fonds fermé coté en bourse à un fonds d'intervalle offert en continu non coté. Le fonds fonctionnera désormais sous le nom de BlackRock Municipal Credit Alpha Portfolio, Inc. avec des offres de rachat d'actions trimestrielles.
Dans le cadre du processus de conversion, les actionnaires enregistrés recevront une action de la Classe d'Actions Institutionnelles (MUNEX) pour chaque action MUI qu'ils détiennent. La conversion a été réalisée le 21 mars 2025, après plusieurs événements clés, y compris le retrait de la cotation du fonds à la NYSE, la déclaration finale de distribution et l'établissement du calendrier de rachat pour 2025.
Il est conseillé aux actionnaires détenant des actions par l'intermédiaire d'intermédiaires financiers de contacter leurs fournisseurs pour confirmer le soutien aux offres de rachat trimestrielles et comprendre les impacts potentiels sur leurs comptes, car tous les intermédiaires ne proposeront pas ou ne soutiendront pas la nouvelle structure de fonds d'intervalle.
Der BlackRock Municipal Income Fund (MUI) hat erfolgreich seine Umwandlung von einem börsennotierten geschlossenen Fonds in einen unbefristeten, kontinuierlich angebotenen Intervallfonds abgeschlossen. Der Fonds wird nun als BlackRock Municipal Credit Alpha Portfolio, Inc. mit vierteljährlichen Aktienrückkaufangeboten betrieben.
Im Rahmen des Umwandlungsprozesses erhalten die registrierten Aktionäre für jede von ihnen gehaltene MUI-Aktie eine Aktie der Institutional Share Class (MUNEX). Die Umwandlung wurde am 21. März 2025 durchgeführt, nach mehreren Schlüsselerereignissen, einschließlich der Abmeldung des Fonds von der NYSE, der endgültigen Ausschüttungserklärung und der Festlegung des Rückkaufplans für 2025.
Aktionäre, die Aktien über Finanzintermediäre halten, wird geraten, ihre Anbieter zu kontaktieren, um die Unterstützung für vierteljährliche Rückkaufangebote zu bestätigen und mögliche Auswirkungen auf ihre Konten zu verstehen, da nicht alle Intermediäre die neue Intervallfondsstruktur anbieten oder unterstützen werden.
- Structured quarterly share repurchase opportunities provide regular liquidity events for shareholders
- One-to-one share conversion ratio maintains proportional ownership for existing shareholders
- Delisting from NYSE may reduce daily trading liquidity
- Not all financial intermediaries will support the new quarterly repurchase structure
- selling opportunities compared to previous daily NYSE trading
Insights
BlackRock's conversion of MUI from an exchange-listed closed-end fund to an unlisted interval fund structure represents a significant change in how shareholders can access their investment. This structural transformation fundamentally alters the liquidity profile of the fund.
The newly named BlackRock Municipal Credit Alpha Portfolio will now operate with quarterly repurchase offers instead of providing daily liquidity through exchange trading. This means shareholders can only exit their positions during these quarterly windows, typically at NAV rather than market price.
Most concerning is the explicit warning that not all financial intermediaries will support the quarterly repurchase offers or continue to sell shares of the interval fund. This creates potential access issues for existing shareholders, who must proactively contact their brokers to determine if they can continue holding or transacting in the fund.
While shareholders receive a 1:1 conversion ratio to the institutional share class (MUNEX), the delisting from NYSE eliminates the market-based price discovery mechanism and secondary market liquidity that exchange-listed closed-end funds provide. The conversion essentially forces long-term shareholders into a different investment structure with reduced flexibility.
These changes suggest BlackRock prioritized the fund management advantages of an interval structure over the liquidity preferences of existing shareholders. Municipal bond investors should carefully evaluate if this new structure aligns with their investment needs and liquidity requirements.
The below table provides shareholders with information regarding the Net Asset Value (NAV) and conversion ratio for the Funds as of March 21, 2025. Shareholders of record will receive one share of the Institutional Share Class for the Interval Fund for each share of MUI they own.
|
NAV |
Conversion Ratio |
BlackRock Municipal Income Fund, Inc. (MUI) |
|
1:1 |
BlackRock Municipal Credit Alpha Portfolio, Inc., Institutional Class (MUNEX) * |
|
- |
* MUNEX represents the Institutional Share Class only of BlackRock Municipal Credit Alpha Portfolio, Inc.
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 – March 3, 2025
BlackRock Municipal Income Fund, Inc. (MUI) Declares Final Distribution as Part of its
Conversion to the Institutional Share Class (MUNEX) of BlackRock Municipal Credit
Alpha Portfolio, Inc.
PRESS RELEASE – February 28, 2025
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
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.
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Source: BlackRock Closed-End Funds
FAQ
What happens to MUI shares after the conversion to an interval fund?
How often can shareholders sell their shares in the new MUI interval fund structure?
When did MUI delist from the NYSE?
What is the new name of MUI after the interval fund conversion?
