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Eaton Vance Municipal Income Trust to sell 1.14 million shares
By Toni Weeks
San Luis Obispo, Calif., March 25 – The Eaton Vance Municipal Income Trust announced an offering of up to 1,140,894 common shares, according to a 497 filing with the Securities and Exchange Commission.
The diversified closed-end management investment company aims to provide a high level of current income exempt from regular federal income tax by investing primarily in investment-grade municipal securities. The trust may, as a secondary objective, also seek preservation of capital when consistent with the primary goal of high current income.
During normal market conditions, the trust will invest at least 80% of its net assets in debt obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, the interest on which is exempt from regular federal income tax. At least 65% of the trust's assets will normally be invested in investment-grade municipal obligations at the time of investment.
The trust primarily invests in senior secured floating-rate forms that are normally accessible only to financial institutions and large corporate and institutional investors.
Thomas M. Metzold is the portfolio manager.
The trust registered on July 3, 2013 to sell 2,281,789 shares at prices to be set forth in one or more prospectus supplements. This offering of about half of those shares falls under that registration; the trust offered the first half of the shares in July 2013.
The trust's shares closed at $13.55 (NYSE: EVN) on Monday.
The sales load will be 1%. Total annual trust operating expenses and dividends on preferred shares are expected to be 1.9%, with 1.32% of that in the form of the management fee.
UBS Securities LLC will act as dealer for the offering.
Boston-based Eaton Vance Management is the investment adviser.
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