Eaton Vance's new muni fund to raise $28.7 million via IPO greenshoe

By Devika Patel

Knoxville, Tenn., June 26 - Eaton Vance Corp. said it expects the underwriters for the initial public offering of its new closed-end fund, Eaton Vance National Municipal Opportunities Trust, will exercise their over-allotment option in part for about 1.5 million more shares, resulting in total net proceeds of $28.7 million.

The shares trade on the New York Stock Exchange under the ticker symbol "EOT."

As previously reported, the trust's primary investment objective is to provide current income exempt from federal income tax, and it will invest primarily in investment-grade municipal obligations. Its secondary investment objective is to achieve capital appreciation.

Eaton Vance said the trust intends to make distributions of tax-exempt income on a monthly basis.

In the IPO, the trust issued 13.75 million shares at an initial price of $20 apiece.

Eaton Vance said that according to industry sources, this is the largest IPO of a listed closed-end fund in the United States since 2007.

The underwriting syndicate was led by UBS Investment Bank and included Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley and Wachovia Securities LLC.

Eaton Vance is an investment management firm based in Boston.

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