Eaton Vance Management plans to redeem about $310 million auction preferred shares

By Cristal Cody

Springdale, Ark., June 23 - Eaton Vance Management expects to redeem about $310 million outstanding auction preferred shares on July 7, according to a statement on Monday.

The Eaton Vance sponsored funds secured new financing through tender option bonds, which will be used to redeem a portion of outstanding auction preferred shares.

Tender option bonds allow the funds to transfer highly rated bonds in their portfolios to special purpose trusts that issue floater certificates and residual certificates.

Eaton Vance began using alternative methods to restore liquidity, including tender option bonds, banks and other replacement financing after experiencing failed auctions in February.

Including this redemption, Eaton Vance funds will have redeemed $3.6 billion outstanding auction shares.

The preferreds that will be redeemed include $21.15 million Eaton Vance Municipal Income Trust series A and B; $178.125 million Eaton Vance Insured Municipal Bond Fund series A, B, C, D and E; $32.8 million Eaton Vance Insured Municipal Bond Fund II series A and B; $17.35 million Eaton Vance Insured California Municipal Bond Fund series A and B; $13.2 million Eaton Vance Insured New York Municipal Bond Fund series A and B; $12.925 million Eaton Vance National Municipal Income Trust series A; and $3.425 million Eaton Vance California Municipal Income Trust series A; and

Preferred shares also to be redeemed include $3.425 million Eaton Vance Insured California Municipal Bond Fund II series A; $13.4 million Eaton Vance Insured Florida Plus Municipal Bond Fund series A; $1.45 million Eaton Vance Massachusetts Municipal Income Trust Fund series A; $1.925 million Eaton Vance Insured Massachusetts Municipal Bond Fund series A; $1.2 million Eaton Vance New Jersey Municipal Income Trust Fund series A; $2.2 million Eaton Vance Insured New Jersey Municipal Bond Fund series A; $6.875 million Eaton Vance New York Municipal Income Trust series A and $975,000 Eaton Vance Insured New York Municipal Bond Fund II series A.

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