BlackRock Municipal Income Fund, Inc. (MUI) Delists from the NYSE in Connection with the Conversion to an Unlisted Interval Fund Structure
BlackRock Municipal Income Fund (MUI) has delisted from the NYSE as part of its conversion from an exchange-listed closed-end fund to an unlisted continuously-offered closed-end fund. The fund will operate as BlackRock Municipal Credit Alpha Portfolio following the conversion, which is scheduled for March 21, 2025.
The converted fund will function as an interval fund, offering quarterly share repurchases between 5% and 25% of outstanding shares, with the initial repurchase offer planned for Q2 2025. Existing MUI shares will be redesignated as Institutional Shares of the interval fund. Important to note, these shares won't be listed on any exchange, and no secondary market is expected to develop, making this an illiquid investment.
Shareholders should be aware that repurchase offers may be oversubscribed, leading to pro-rata share repurchases. Not all financial intermediaries will support the quarterly repurchase offers, and shareholders are advised to contact their financial intermediaries regarding the conversion's impact on their accounts.
Il BlackRock Municipal Income Fund (MUI) è stato delistato dalla NYSE come parte della sua conversione da un fondo chiuso quotato in borsa a un fondo chiuso non quotato offerto continuamente. Dopo la conversione, che è programmata per il 21 marzo 2025, il fondo opererà come BlackRock Municipal Credit Alpha Portfolio.
Il fondo convertito funzionerà come un fondo ad intervallo, offrendo riacquisti trimestrali di azioni tra il 5% e il 25% delle azioni in circolazione, con la prima offerta di riacquisto pianificata per il secondo trimestre del 2025. Le azioni esistenti di MUI saranno ridefinite come Azioni Istituzionali del fondo ad intervallo. È importante notare che queste azioni non saranno quotate su alcuna borsa e non si prevede che si sviluppi un mercato secondario, rendendo questo un investimento illiquido.
Gli azionisti dovrebbero essere consapevoli che le offerte di riacquisto potrebbero essere sovrascritte, portando a riacquisti di azioni pro-rata. Non tutti gli intermediari finanziari supporteranno le offerte di riacquisto trimestrali, e si consiglia agli azionisti di contattare i propri intermediari finanziari riguardo all'impatto della conversione sui loro conti.
El BlackRock Municipal Income Fund (MUI) ha sido eliminado de la NYSE como parte de su conversión de un fondo cerrado cotizado en bolsa a un fondo cerrado no cotizado ofrecido continuamente. Después de la conversión, programada para el 21 de marzo de 2025, el fondo operará como BlackRock Municipal Credit Alpha Portfolio.
El fondo convertido funcionará como un fondo de intervalo, ofreciendo recompras trimestrales de acciones entre el 5% y el 25% de las acciones en circulación, con la primera oferta de recompra planificada para el segundo trimestre de 2025. Las acciones existentes de MUI serán redesignadas como Acciones Institucionales del fondo de intervalo. Es importante destacar que estas acciones no estarán cotizadas en ninguna bolsa y no se espera que se desarrolle un mercado secundario, lo que convierte esto en una inversión ilíquida.
Los accionistas deben ser conscientes de que las ofertas de recompra pueden estar sobreejecutadas, lo que llevará a recompras de acciones prorrateadas. No todos los intermediarios financieros apoyarán las ofertas de recompra trimestrales, y se aconseja a los accionistas que contacten a sus intermediarios financieros sobre el impacto de la conversión en sus cuentas.
블랙록 시가채권 펀드 (MUI)는 상장 폐쇄형 펀드에서 비상장 지속 제공 폐쇄형 펀드로의 전환의 일환으로 NYSE에서 상장 폐쇄되었습니다. 전환 후, 즉 2025년 3월 21일에 블랙록 시가신용 알파 포트폴리오로 운영될 예정입니다.
전환된 펀드는 분기별 주식 매입을 통해 유통 주식의 5%에서 25% 사이를 제공하는 간격 펀드로 기능할 것입니다. 최초의 매입 제안은 2025년 2분기로 계획되어 있습니다. 기존 MUI 주식은 간격 펀드의 기관 주식으로 재지정될 것입니다. 이 주식은 어떤 거래소에도 상장되지 않으며, 이차 시장이 형성될 것으로 예상되지 않으므로 유동성이 없는 투자로 간주됩니다.
주주들은 매입 제안이 초과 청약될 수 있다는 점을 인식해야 하며, 이로 인해 비례 매입이 이루어질 수 있습니다. 모든 금융 중개인이 분기별 매입 제안을 지원하는 것은 아니므로, 주주들은 자신의 계좌에 대한 전환의 영향을 문의하기 위해 금융 중개인에게 연락하는 것이 좋습니다.
Le BlackRock Municipal Income Fund (MUI) a été retiré de la NYSE dans le cadre de sa conversion d'un fonds fermé coté en bourse à un fonds fermé non coté offert en continu. Après la conversion, prévue pour le 21 mars 2025, le fonds fonctionnera sous le nom de BlackRock Municipal Credit Alpha Portfolio.
Le fonds converti fonctionnera comme un fonds d'intervalle, offrant des rachats d'actions trimestriels entre 5 % et 25 % des actions en circulation, avec la première offre de rachat prévue pour le deuxième trimestre de 2025. Les actions existantes de MUI seront requalifiées en Actions Institutionnelles du fonds d'intervalle. Il est important de noter que ces actions ne seront pas cotées sur aucune bourse et qu'aucun marché secondaire ne devrait se développer, ce qui en fait un investissement illiquide.
Les actionnaires doivent être conscients que les offres de rachat peuvent être sursouscrites, ce qui entraînera des rachats d'actions au prorata. Tous les intermédiaires financiers ne soutiendront pas les offres de rachat trimestrielles, et il est conseillé aux actionnaires de contacter leurs intermédiaires financiers concernant l'impact de la conversion sur leurs comptes.
Der BlackRock Municipal Income Fund (MUI) wurde von der NYSE abgezogen, um von einem börsennotierten geschlossenen Fonds in einen unnotierten, kontinuierlich angebotenen geschlossenen Fonds umzuwandeln. Nach der Umwandlung, die für den 21. März 2025 geplant ist, wird der Fonds als BlackRock Municipal Credit Alpha Portfolio fungieren.
Der umgewandelte Fonds wird als Intervallfonds agieren und vierteljährliche Aktienrückkäufe zwischen 5% und 25% der ausstehenden Aktien anbieten, wobei das erste Rückkaufangebot für das 2. Quartal 2025 geplant ist. Die bestehenden MUI-Anteile werden als institutionelle Anteile des Intervallfonds umbenannt. Es ist wichtig zu beachten, dass diese Anteile an keiner Börse notiert sein werden und kein Sekundärmarkt erwartet wird, was diese zu einer illiquiden Investition macht.
Aktionäre sollten sich bewusst sein, dass Rückkaufangebote überzeichnet sein können, was zu anteiligen Rückkäufen führt. Nicht alle Finanzintermediäre werden die vierteljährlichen Rückkaufangebote unterstützen, und Aktionären wird geraten, sich bezüglich der Auswirkungen der Umwandlung auf ihre Konten an ihre Finanzintermediäre zu wenden.
- None.
- Loss of stock market liquidity as shares will no longer trade on any exchange
- share repurchase opportunities (quarterly, 5-25% of shares)
- Risk of oversubscribed repurchase offers leading to partial or rejected redemptions
- Not all financial intermediaries will support the new structure
Insights
The conversion of BlackRock's Municipal Income Fund (MUI) from a listed closed-end fund to an unlisted interval fund structure marks a strategic shift that will significantly impact $848 million in assets under management. This transformation reflects broader industry trends where fund managers seek to address persistent CEF trading discounts while potentially enhancing portfolio management flexibility.
The new interval fund structure introduces important changes for shareholders:
- Quarterly liquidity windows replace daily trading capability, with repurchase offers ranging from 5% to 25% of outstanding shares
- Elimination of secondary market trading removes the discount/premium dynamic typical of closed-end funds
- Pro-rata repurchase allocations during oversubscribed periods could restrict immediate liquidation options
The interval fund format offers several potential advantages for municipal bond portfolio management. The reduced liquidity pressure allows portfolio managers to:
- Hold longer-duration bonds without concern for daily redemptions
- Potentially capture higher yields through less liquid municipal securities
- Maintain more stable NAV by reducing forced selling during market stress
However, shareholders must carefully evaluate their liquidity needs and verify their financial intermediary's capability to support the new structure. The transition period between March 21-24, 2025, requires particular attention as trading capabilities will be temporarily suspended. Those requiring immediate liquidity should consider their options before the delisting date.
Please note that, effective as of the Delisting Date, the MUI Shares will no longer trade on the NYSE or any other securities exchange.
The Fund is in the process of converting 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”). 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”). The Interval Fund currently intends to commence the initial repurchase offer in the second quarter of 2025.
Conversion and First Periodic Repurchase
MUI Shares held on the Conversion Date will be redesignated as Institutional Shares of the Interval Fund (“Interval Fund Shares”). The Interval Fund Shares will not be listed for trading on any securities exchange and a secondary market is not expected to develop for the Interval Fund Shares. As a result, an investment in the Interval Fund is not a liquid investment. Shareholders will generally only be able to sell their Interval Fund Shares through the Interval Fund’s quarterly offers to repurchase between
Although the Interval Fund intends to conduct quarterly repurchase offers, such repurchase offers may be oversubscribed. If a repurchase offer is oversubscribed, the Interval Fund will repurchase the shares tendered on a pro rata basis, and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a result, shareholders may be unable to liquidate all or a given percentage of their investment in the Interval Fund through a particular repurchase offer. Shareholders will be subject to the risk of NAV fluctuations and other investment-related risks during that period.
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 – December 23, 2024:
BlackRock Municipal Income Fund, Inc. (MUI) Provides De-Listing and Conversion Dates for Upcoming Conversion to Unlisted Continuously-Offered Closed-End Fund
PRESS RELEASE - June 7, 2024:
BlackRock Municipal Income Fund, Inc. (MUI) Approves Conversion to Unlisted Closed-End Interval Fund Structure
October 16, 2024 SEC Filing:
SEC Registration Filing for BlackRock Municipal Credit Alpha Portfolio (MUNEX)
PRESS RELEASE - November 18, 2024:
BlackRock Municipal Income Fund, Inc. (MUI) Announces Final Results of Tender Offer
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/20250214049900/en/
1-800-882-0052
Source: BlackRock Closed-End Funds
FAQ
When will MUI complete its conversion to an interval fund structure?
What happens to existing MUI shares after the conversion?
How often can shareholders sell their shares in the new MUI interval fund structure?
Will MUI shares be tradeable after the conversion to an interval fund?
What happens if MUI's repurchase offers are oversubscribed?
