BlackRock Municipal Income Fund, Inc. (MUI) Provides De-Listing and Conversion Dates for Upcoming Conversion to Unlisted Continuously-Offered Closed-End Fund
BlackRock Municipal Income Fund (MUI) has announced key dates for its conversion from an exchange-listed closed-end fund to an unlisted continuously-offered closed-end fund. The conversion is scheduled for March 21, 2025, becoming effective March 24, 2025, with the fund being renamed to BlackRock Municipal Credit Alpha Portfolio.
The fund will delist from NYSE on February 14, 2025, after which shares will no longer trade on any exchange. Post-conversion, existing MUI shares will be redesignated as Institutional Shares of the Interval Fund. The new structure will offer quarterly repurchase opportunities for 5-25% of outstanding shares, with the initial repurchase offer planned for Q2 2025.
Shareholders are advised that the investment will become illiquid, as no secondary market is expected to develop. Repurchase offers may be oversubscribed, resulting in pro-rata share repurchases.
BlackRock Municipal Income Fund (MUI) ha annunciato le date chiave per la sua conversione da un fondo chiuso quotato in borsa a un fondo chiuso non quotato con offerta continua. La conversione è programmata per il 21 marzo 2025, diventando effettiva il 24 marzo 2025, con il fondo che assumerà il nome di BlackRock Municipal Credit Alpha Portfolio.
Il fondo sarà escluso dalla NYSE il 14 febbraio 2025, dopo di che le azioni non verranno più scambiate su alcuna borsa. Dopo la conversione, le azioni esistenti di MUI saranno ridefinite come Azioni Istituzionali del Fondo a Intervallo. La nuova struttura offrirà opportunità di riacquisto trimestrali per il 5-25% delle azioni in circolazione, con la prima offerta di riacquisto pianificata per il secondo trimestre del 2025.
Si consiglia agli azionisti che l'investimento diventerà illiquido, poiché non ci si aspetta che si sviluppi un mercato secondario. Le offerte di riacquisto potrebbero essere sovrascritte, risultando in riacquisti di azioni su base pro-rata.
BlackRock Municipal Income Fund (MUI) ha anunciado las fechas clave para su conversión de un fondo cerrado cotizado en bolsa a un fondo cerrado no cotizado con oferta continua. La conversión está programada para el 21 de marzo de 2025, siendo efectiva el 24 de marzo de 2025, con el fondo renombrado como BlackRock Municipal Credit Alpha Portfolio.
El fondo se deslistará de la NYSE el 14 de febrero de 2025, después de lo cual las acciones ya no se negociarán en ninguna bolsa. Después de la conversión, las acciones existentes de MUI se redesignarán como Acciones Institucionales del Fondo de Intervalo. La nueva estructura ofrecerá oportunidades de recompra trimestrales del 5-25% de las acciones en circulación, con la primera oferta de recompra prevista para el segundo trimestre de 2025.
Se aconseja a los accionistas que la inversión se volverá ilíquida, ya que no se espera que se desarrolle un mercado secundario. Las ofertas de recompra pueden estar sobre suscritas, resultando en recompra de acciones pro-rata.
블랙록 지방소득 펀드 (MUI)가 상장 폐쇄형 펀드에서 비상장 지속 제공 폐쇄형 펀드로 전환하기 위한 주요 날짜를 발표했습니다. 전환은 2025년 3월 21일로 예정되어 있으며, 2025년 3월 24일에 시행됩니다. 이때 펀드의 이름은 블랙록 지방신용 알파 포트폴리오로 변경됩니다.
펀드는 2025년 2월 14일에 NYSE에서 상장 폐지되며, 이후 주식은 어떤 거래소에서도 거래되지 않습니다. 전환 후 기존 MUI 주식은 구간 펀드의 기관 주식으로 재지정됩니다. 새로운 구조는 유통 주식의 5-25%에 대한 분기별 매입 기회를 제공하며, 첫 번째 매입 제안은 2025년 2분기로 예정되어 있습니다.
주주들은 이 투자가 유동성이 없게 될 것임을 알려줘야 하며, 이차 시장이 개발될 것으로 예상되지 않습니다. 매입 제안은 초과 청약될 수 있으며, 따라서 비례 배분 방식으로 주식이 매입될 수 있습니다.
BlackRock Municipal Income Fund (MUI) a annoncé des dates clés pour sa conversion d'un fonds fermé coté en bourse à un fonds fermé non coté offrant une offre continue. La conversion est prévue pour le 21 mars 2025, prenant effet le 24 mars 2025, avec le fonds rebaptisé BlackRock Municipal Credit Alpha Portfolio.
Le fonds sera radié de la NYSE le 14 février 2025, après quoi les actions ne seront plus négociées sur aucune bourse. Après la conversion, les actions existantes de MUI seront redésignées comme des Actions Institutionnelles du Fonds à Intervalle. La nouvelle structure offrira des possibilités de rachat trimestriel de 5 à 25% des actions en circulation, la première offre de rachat étant prévue pour le deuxième trimestre 2025.
Les actionnaires sont informés que l'investissement deviendra illiquide, car aucun marché secondaire ne devrait se développer. Les offres de rachat peuvent être sursouscrites, entraînant des rachats d'actions au prorata.
BlackRock Municipal Income Fund (MUI) hat die wichtigsten Termine für die Umstellung von einem börsennotierten geschlossenen Fonds auf einen nicht börsennotierten kontinuierlich angebotenen geschlossenen Fonds bekannt gegeben. Die Umstellung ist für den 21. März 2025 geplant und tritt am 24. März 2025 in Kraft, wobei der Fonds in BlackRock Municipal Credit Alpha Portfolio umbenannt wird.
Der Fonds wird am 14. Februar 2025 von der NYSE entfernt, wonach die Anteile nicht mehr an einer Börse gehandelt werden. Nach der Umstellung werden die bestehenden MUI-Anteile als Institutionelle Anteile des Intervallfonds umbenannt. Die neue Struktur wird vierteljährliche Rückkaufmöglichkeiten für 5-25% der ausstehenden Anteile bieten, wobei das erste Rückkaufangebot für das 2. Quartal 2025 geplant ist.
Die Aktionäre werden darauf hingewiesen, dass die Investition illiquide wird, da nicht erwartet wird, dass sich ein Sekundärmarkt entwickelt. Rückkaufangebote können überzeichnet sein, was zu einer pro-rata Rücknahme von Anteilen führen kann.
- None.
- Loss of liquidity as shares will no longer trade on any exchange
- exit opportunities through quarterly repurchase offers of 5-25% of shares
- Risk of oversubscribed repurchase offers leading to pro-rata share repurchases
- Not all financial intermediaries will support the new structure
Insights
This conversion from a listed closed-end fund to an unlisted interval fund structure represents a fundamental shift in liquidity and trading mechanics for MUI shareholders. The transition scheduled for March 21, 2025, introduces significant implications for investor access and portfolio management. The new structure will limit liquidity to quarterly repurchase offers of 5-25% of outstanding shares, compared to the current daily trading capability on NYSE. This creates a material change in investment characteristics.
The delisting date of February 14, 2025, marks a critical transition point where traditional market-based price discovery will cease. The repurchase mechanism, starting in Q2 2025, introduces a new dynamic where investors may face pro-rata allocations if repurchase requests exceed the offered amount. This could result in extended holding periods for investors seeking exits.
The conversion to BlackRock Municipal Credit Alpha Portfolio suggests a potential shift in investment strategy, likely enabling more flexible portfolio management without daily NAV considerations. However, the trade-off is reduced liquidity for shareholders, making position sizing and exit planning important for current holders.
The structural transformation introduces notable market implications that warrant careful consideration. The removal from NYSE listing eliminates the price discovery mechanism and potential discount/premium dynamics typical of listed closed-end funds. This could significantly impact current shareholders who rely on secondary market liquidity.
The new interval fund format may help reduce NAV volatility by eliminating market price fluctuations, but introduces new challenges in portfolio management during repurchase windows. The
Institutional investors and larger shareholders should particularly note that repurchase allocations may be prorated, potentially complicating position exit strategies. The shift also requires vigilance regarding financial intermediary capabilities, as not all platforms will support the new structure's operational requirements.
Delisting From the New York Stock Exchange
In connection with the Conversion, the Fund intends to delist its shares of common stock (“MUI Shares”) from the New York Stock Exchange effective as of the close of business on February 14, 2025 (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 Conversion Date and the Delisting Date are subject to change. Any such changes will be announced via press release.
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 - 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.
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Source: BlackRock Closed-End Funds
FAQ
When will MUI delist from the NYSE?
What happens to MUI shares after the conversion on March 24, 2025?
How often can shareholders sell their shares in the new Interval Fund structure?
When will the first repurchase offer occur after MUI's conversion?
Will MUI shareholders be able to freely trade their shares after the conversion?
