Eaton Vance Municipal Bond Fund Announces Firm and Conditional Tender Offers
06 Mayo 2024 - 3:01PM
Business Wire
Eaton Vance Municipal Bond Fund (NYSE American: EIM) (the
“Fund”) announced that its Board of Trustees (the “Board”) has
authorized a cash tender offer for up to 20% of its outstanding
common shares at a price per share equal to 98% of the Fund’s net
asset value (“NAV”) per share as of the close of regular trading on
the New York Stock Exchange (NYSE) on the date the tender offer
expires (the “Firm Tender Offer”). The Firm Tender Offer is
expected to begin on or about June 7, 2024 and expire at 5:00 P.M.
Eastern Time on or about July 9, 2024, unless extended. The pricing
date is also expected to be July 9, 2024, unless the Firm Tender
Offer is extended.
The Board also authorized the Fund to conduct two conditional
cash tender offers to follow the Firm Tender Offer, provided
certain conditions are met. Specifically, on the date of the close
of the Firm Tender Offer, the Fund will announce via press release
the commencement of a four-month period. If, during such period,
the Fund’s common shares trade at an average discount to NAV of
more than 7.5% (based upon the average of the difference between
its volume-weighted average market price and NAV each business day
during the period) (“First Trigger Event”), the Fund will conduct
an additional tender offer (the “Initial Conditional Tender Offer”)
within 20 business days of the date on which the First Trigger
Event occurs. The Initial Conditional Tender Offer will be for up
to 5% of the Fund’s then-outstanding common shares at 98% of NAV
per share as of the close of regular trading on the NYSE on the
date the tender offer expires.
The Fund will announce via press release the commencement of a
second four-month period, commencing on the first business day
after the nine-month anniversary of the commencement of the Firm
Tender Offer. If, during such period, the Fund’s common shares
trade at an average discount to NAV of more than 7.5% (based upon
the average of the difference between its volume-weighted average
market price and NAV each business day during the period) (“Second
Trigger Event”), the Fund will conduct an additional tender offer
(the “Second Conditional Tender Offer” and, collectively with the
Firm Tender Offer and the Initial Conditional Tender Offer, the
“Tender Offers”) within 20 business days of the date on which the
Second Trigger Event occurs. The Second Conditional Tender Offer
will be for up to 5% of the Fund’s then-outstanding common shares
at 98% of NAV per share as of the close of regular trading on the
NYSE on the date the tender offer expires.
Additional terms and conditions of each Tender Offer will be set
forth in the Fund’s offering materials filed with the U.S.
Securities and Exchange Commission (the “SEC”), which will be
distributed to the Fund’s common shareholders, and in additional
press releases, as applicable. If the number of common shares
tendered in a Tender Offer exceeds the maximum amount of the Tender
Offer, the Fund will purchase shares from tendering shareholders on
a pro-rata basis (disregarding fractional common shares).
Accordingly, there is no assurance that the Fund will purchase all
of a shareholder’s common shares tendered in any or all of the
Tender Offer(s). The Fund may determine not to accept shares
tendered in a Tender Offer under various circumstances, as will be
set forth in the offering materials. Further information about the
Tender Offers will be announced in future press releases and the
Fund’s offering materials
About Eaton Vance
Eaton Vance applies in-depth fundamental analysis to the active
management of equity, income, alternative and multi-asset
strategies. Eaton Vance’s investment teams follow time-tested
principles of investing that emphasize ongoing risk management, tax
management (where applicable) and the pursuit of consistent
long-term returns. The firm’s investment capabilities encompass the
global capital markets. Eaton Vance is a part of Morgan Stanley
Investment Management, the asset management division of Morgan
Stanley.
About the Fund
Except for sales of shares pursuant to a tender offer, common
shares of the Fund are available for purchase or sale only through
secondary market trading at their current market price. Shares of
closed-end funds (such as the Fund) often trade at a discount from
their NAV. The market price of Fund shares may vary from NAV based
on factors affecting the supply and demand for shares, such as Fund
distribution rates relative to similar investments, investors’
expectations for future distribution changes, the clarity of the
Fund’s investment strategy and future return expectations, and
investors’ confidence in the underlying markets in which the Fund
invests. Fund shares are subject to investment risk, including
possible loss of principal invested. Fund shares are not
FDIC-insured and are not deposits or other obligations of, or
guaranteed by, any bank. The Fund is not a complete investment
program and you may lose money investing in the Fund. An investment
in the Fund may not be appropriate for all investors. Before
investing in the Fund, prospective investors should consider
carefully the Fund’s investment objective, strategies, risks,
charges and expenses.
Important Notice
This announcement is not a recommendation, an offer to purchase
or a solicitation of an offer to sell shares of the Fund. The Fund
has not commenced the Firm Tender Offer described in this press
release, and the Conditional Tender Offer(s) will not be completed
unless the prescribed conditions are met. The Tender Offer(s) will
be made only by an offer to purchase, a related letter of
transmittal and other documents filed with the SEC as exhibits to a
tender offer statement on Schedule TO, with all such documents
available on the SEC’s website at www.sec.gov. For each Tender
Offer, the Fund will also make available to shareholders without
charge the offer to purchase and the letter of transmittal.
Shareholders should read these documents carefully, as they will
contain important information about the relevant Tender Offer.
This press release is for informational purposes only and is not
intended to, and does not, constitute an offer to purchase or sell
shares of the Fund. Additional information about the Fund,
including performance and portfolio characteristic information, is
available at www.eatonvance.com.
Statements in this press release that are not historical facts
are forward-looking statements as defined by the U.S. securities
laws. You should exercise caution in interpreting and relying on
forward-looking statements because they are subject to
uncertainties and other factors which are, in some cases, beyond
the Fund’s control and could cause actual results to differ
materially from those set forth in the forward-looking statements.
All forward-looking statements are as of the date of this press
release only; the Fund undertakes no obligation to update or review
any forward-looking statements.
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