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.

Rhea-AI Summary

BlackRock Municipal Income Fund (MUI) has announced its final distribution before converting to the Institutional Share Class (MUNEX) of BlackRock Municipal Credit Alpha Portfolio. The final distribution will be paid on March 20, 2025, covering March 1-23, 2025.

Key details include:

• Final MUI distribution of $0.0408 (daily rate of $0.001774 for 23 days)
• MUI's current distribution rate is approximately 5.0% of NAV
• MUNEX will launch with a higher 5.75% annualized rate on initial NAV
• MUNEX will feature daily record & ex-date with monthly payments
• MUI delisted from NYSE on February 14, 2025
• The conversion is scheduled to close on March 24, 2025

Positive

• MUNEX offers higher distribution rate (5.75%) compared to MUI's 5.0%
• More frequent distributions with daily record dates and monthly payments

Negative

• MUI delisted from NYSE, reducing liquidity for shareholders
• Final distribution not eligible for reinvestment

Insights

Financial Analyst

The conversion of BlackRock Municipal Income Fund (MUI) to the Institutional Share Class (MUNEX) of BlackRock Municipal Credit Alpha Portfolio represents a notable structural shift with tangible financial implications for existing shareholders. The 5.75% annualized distribution rate planned for MUNEX offers a 75 basis point increase over MUI's previous 5.0% rate - a meaningful yield enhancement in the municipal bond space.

This conversion follows MUI's February delisting from NYSE, which has already fundamentally altered the liquidity profile of the investment. The upcoming March 24th conversion completes this transformation from a publicly-traded closed-end fund to an institutional share class structure.

Several operational changes warrant attention: the final MUI distribution will be paid in cash without reinvestment options; MUNEX will implement a daily record and ex-date with monthly payments (compared to typical CEF distribution schedules); and shareholders will experience a shift in how they access and potentially trade their investment without NYSE listing.

While the higher distribution rate provides an immediate benefit, investors should recognize this structural conversion may bring different expense ratios, liquidity considerations, and potential tax implications that aren't fully detailed in the announcement. The switch to an institutional share class structure could offer efficiency advantages but also typically involves different investment parameters than publicly-traded CEFs.

NEW YORK--(BUSINESS WIRE)-- BlackRock Municipal Income Fund, Inc. (MUI) announced a distribution today as detailed below.

Shareholders will receive a final distribution from MUI to be paid March 20, 2025 representing the period March 1, 2025 through March 23, 2025. The conversion is anticipated to close on March 24, 2025, at which time MUNEX will begin a daily record & ex-date to be paid March 31, 2025.

MUNEX represents the Institutional Share Class and is expected to launch with a 5.75% annualized rate on the initial NAV with a daily record and ex-date and monthly payment. This represents a higher annualized distribution rate compared to MUI’s approximately 5.0% distribution rate on NAV.

Final MUI Distribution:

Declaration-3/3/2025

Ex-Date- 3/14/2025

Record- 3/14/2025

Payable- 3/20/2025

	Ticker	Distribution	% Change
BlackRock Municipal Income Fund, Inc.	MUI	$0.040800*	-

*The $0.0408 represents a daily rate of $0.001774 for 23 days of MUI, approximately a 5.0% annualized distribution rate of NAV.

Notes:
MUI’s final distribution will be paid in cash and is not eligible for reinvestment.
MUI delisted from the NYSE on February 14, 2025.
PRESS RELEASE: MUI Delisting and Conversion to MUNEX

* In order to comply with the requirements of Section 19 of the Investment Company Act of 1940, as amended (the “1940 Act”), the Fund noted above posted to the DTC bulletin board and sent to its shareholders of record as of the applicable record date a Section 19 notice with the previous distribution payment. The Section 19 notice was provided for informational purposes only and not for tax reporting purposes. This information can be found in the “Closed-End Funds” section of www.blackrock.com. As applicable, the final determination of the source and tax characteristics of all distributions in 2025 will be made after the end of the year.

The fixed amounts distributed per share or distribution rate, as applicable, are subject to change at the discretion of the Fund’s Board of Directors/Trustees. Under its Plan, the Fund will distribute all available investment income to its shareholders, consistent with its investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient income (inclusive of net investment income and short-term capital gains) is not available on a monthly basis, a Fund will distribute long-term capital gains and/or return capital to its shareholders in order to maintain a level distribution.

The amounts and sources of distributions reported are only estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

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 Funds 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 Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds 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 a Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a 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 Funds, 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 Funds or in a Fund’s net asset value; (2) the relative and absolute investment performance of a 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 a 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 Funds 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 Funds. 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 is the final distribution amount for BlackRock Municipal Income Fund (MUI) before conversion?

MUI's final distribution is $0.0408, representing a daily rate of $0.001774 for 23 days, approximately a 5.0% annualized distribution rate of NAV.

When will MUI convert to MUNEX and what are the new distribution terms?

MUI will convert to MUNEX on March 24, 2025, with MUNEX offering a higher 5.75% annualized rate compared to MUI's 5.0%, paid monthly with daily record dates.

What happens to MUI's final distribution payment and reinvestment?

The final distribution will be paid on March 20, 2025, in cash only and is not eligible for reinvestment.

When did MUI delist from the NYSE and what's the conversion timeline?

MUI delisted from NYSE on February 14, 2025, with the conversion to MUNEX scheduled to close on March 24, 2025.