BOSTON, May 26, 2016 /PRNewswire/ -- Eaton Vance Management ("Eaton Vance") announced today the initial public offering of common shares of Eaton Vance High Income 2021 Target Term Trust (the "Trust"), a new closed-end fund primarily investing in high yield corporate debt obligations. The Trust is issuing 19 million shares at an initial price of $10.00 per share, resulting in gross proceeds of $190 million. Up to approximately 2.85 million additional shares may be issued upon exercise of the underwriters' overallotment option, which may not occur. The Trust begins trading today on the New York Stock Exchange under the ticker symbol "EHT." Eaton Vance is the Trust's investment adviser.
The Trust's investment objectives are high current income and to return $9.85 per common share before deducting offering costs (the "Original NAV") to holders of common shares on or about July 1, 2021 (the "Termination Date"). The Trust seeks to achieve its investment objectives by investing, under normal circumstances, at least 80% of its managed assets in corporate debt obligations and, separately, at least 80% of its managed assets in high yield corporate debt obligations up to a wind-up period of three to twelve months before the Termination Date. To limit the Trust's exposure to interest rate and reinvestment risk, the longest maturity of any Trust holding will be not more than six months beyond the Termination Date.
The underwriting syndicate was led by Wells Fargo Securities and UBS Investment Bank.
Eaton Vance, a wholly owned subsidiary of Eaton Vance Corp. (NYSE: EV), is a leading global asset manager whose history dates to 1924. With offices in North America, Europe, Asia and Australia, Eaton Vance and its affiliates managed $318.7 billion in assets as of April 30, 2016, offering individuals and institutions a broad array of investment strategies and wealth management solutions. The Company's long record of providing exemplary service, timely innovation and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information, see eatonvance.com.
The Trust is a newly organized, diversified closed-end management investment company with no operating history. Trust shares are subject to investment risk, including possible loss of principal invested. An investment in the Trust may not be appropriate for all investors. There is no assurance that the Trust will achieve its investment objectives. The objective to return the Trust's Original NAV is not an express or implied guarantee obligation of the Trust or any other entity. The market price of Trust shares will be affected by factors influencing the supply and demand for Trust shares, which may include changes in Trust distributions, changing perceptions about the Trust and general market conditions. The information contained herein is provided for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy Trust shares. Following the initial offering, shares of the Trust are only available for purchase and sale at current market price on a stock exchange. The Trust is subject to investment risks, including possible loss of principal invested. The Trust is not a complete investment program and you may lose money investing in the Trust. An investment in the Trust may not be appropriate for all investors.
Statements in this press release that are not historical facts are forward-looking statements as defined by the United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors which are, in some cases, beyond the Trust's control and could cause actual results to differ materially from those set forth in the forward-looking statements.
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SOURCE Eaton Vance Management