Eaton Vance Municipal Bond Fund to launch tender offer in August

Published 11/07/2025, 21:06
Eaton Vance Municipal Bond Fund to launch tender offer in August

BOSTON - Eaton Vance Municipal Bond Fund (NYSE American:EIM), a $542.47 million market cap fund with a notable 6.38% dividend yield, announced Friday it will proceed with a tender offer for up to 5% of its outstanding common shares after meeting predetermined conditions. According to InvestingPro data, the fund has maintained dividend payments for an impressive 24 consecutive years.

The fund will purchase shares at 98% of net asset value (NAV) per share, with the tender offer expected to commence around August 6, 2025, and conclude near September 4, 2025. The fund currently trades near its 52-week low of $9.27, with characteristically low price volatility as evidenced by its 0.5 beta. For more detailed trading metrics and analysis, investors can access additional insights through InvestingPro.

The decision follows a four-month measurement period from March 10 through July 9, 2025, during which the fund’s common shares traded at an average discount to NAV exceeding 7.5%, triggering the previously announced contingency plan. The fund maintains strong financial health with a current ratio of 2.88, indicating robust liquidity management.

If the number of shares tendered exceeds the maximum amount offered, the fund will purchase shares from tendering shareholders on a pro-rata basis. The fund noted there is no guarantee it will purchase all tendered shares, and it may decline to accept shares under various circumstances to be detailed in forthcoming offering materials.

Complete terms and conditions of the tender offer will be included in materials filed with the U.S. Securities and Exchange Commission and distributed to shareholders.

Eaton Vance Municipal Bond Fund is a closed-end fund whose shares typically trade on secondary markets, often at a discount to NAV. The fund is part of Morgan Stanley Investment Management, which reported $1.6 trillion in assets under management or supervision as of March 31, 2025, according to the press release statement.

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