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BOSTON, July 12, 2024--(BUSINESS WIRE)--Eaton Vance Municipal Bond Fund (NYSE American: EIM) (the "Fund") announced that, in connection with the recent close of the Fund’s cash tender offer on July 9, 2024, the Fund has commenced a four-month measurement period, beginning July 9, 2024 through November 8, 2024, whereby if, during such period, the Fund’s common shares trade at an average discount to net asset value ("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) (the "First Trigger Event"), the Fund will conduct a 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 New York Stock Exchange on the date the tender offer expires.
If the conditions of the First Trigger Event are met, then additional terms and conditions of the Initial Conditional 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 the Initial Conditional Tender Offer exceeds the maximum amount of the Initial Conditional 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 the Initial Conditional Tender Offer. The Fund may determine not to accept shares tendered in the Initial Conditional Tender Offer under various circumstances, as will be set forth in the offering materials. Further information about the Initial Conditional Tender Offer will be announced in future press releases and the Fund’s offering materials.
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.