BOSTON, March 26, 2013 /PRNewswire/ -- Eaton Vance Corp. (NYSE: EV) announced today the initial public offering of common shares of Eaton Vance Municipal Income Term Trust (the "Trust"), a new closed-end fund. The Trust is issuing 10,250,000 shares at an initial price of $20.00 per share, resulting in gross proceeds of $205 million. Up to approximately 1.5 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 "ETX."
The Trust's investment objective is to provide current income exempt from regular federal income tax. The Trust will seek to achieve its investment objective by investing primarily in municipal obligations, a portion of which will be investment grade and a portion of which may be below investment grade at the time of investment. The Trust has a term of fifteen years and currently intends to cease its investment operations on or about June 30, 2028 and thereafter liquidate and distribute its net assets to holders of the Trust's common shares. An investment in the Trust may not be appropriate for all investors, particularly those that are not subject to federal income tax. There is no assurance that the Trust will achieve its investment objective.
The underwriting syndicate was led by UBS Investment Bank and included Morgan Stanley & Co. Incorporated, Citigroup Global Markets, Inc. and BofA Merrill Lynch.
Eaton Vance Management, a wholly-owned subsidiary of Eaton Vance Corp., is the Trust's investment adviser.
Eaton Vance is one of the oldest investment management firms in the United States, with a history dating to 1924. Eaton Vance and its affiliates managed $247.8 billion in assets as of January 31, 2013, 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 about Eaton Vance, visit www.eatonvance.com.
The Trust is a newly organized, diversified, closed-end management investment company with no operating history. The market price of Trust shares can be affected by factors such as changing perceptions about the Trust, market conditions, fluctuations in supply and demand for Trust shares, or changes in Trust distributions. Trust shares are subject to investment risk, including possible loss of principal invested. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Trust carefully before investing. Investors should read the prospectus carefully before they invest. Shares of closed-end funds often trade at a discount from their net asset value. The Trust is not a complete investment program and you may lose money investing in the Trust.
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.
SOURCE Eaton Vance Management