BlackRock Municipal Income Fund Transition Announcement
BlackRock Municipal Income Fund, Inc. (NYSE: MUI, referred to as the “Fund”) is set to undergo an exciting transition. The Fund will change from an exchange-listed closed-end fund to an unlisted continuously-offered closed-end fund, which will conduct quarterly repurchases of its shares. This new venture will be known as BlackRock Municipal Credit Alpha Portfolio, Inc. (the “Interval Fund”). The Conversion will enhance the investment strategy and provide more options to the shareholders.
Key Dates for Transition
The anticipated timeline for the Conversion is after the close of business on March 21, 2025, with the official implementation expected on March 24, 2025. Along with this change, the Fund will also delist its common stock shares from the New York Stock Exchange. The delisting is set to take place at the close of business on February 14, 2025. This means that MUI Shares will cease to trade on the NYSE and any other exchanges from that date onwards.
Important Reminders
Investors should be aware that both the Delisting Date and the Conversion Date could change. Any alterations to these dates will be communicated through press releases to ensure that all stakeholders are informed promptly. Holding shares through the transition may come with liquidity challenges as MUI Shares will not be available for trading.
What the Conversion Means for Shareholders
For shareholders, the MUI Shares held on the Conversion Date will be reclassified as Institutional Shares of the Interval Fund, known as Interval Fund Shares. Importantly, the Interval Fund Shares will not be traded on any stock exchange, which indicates a shift in how investors will manage their holdings. A secondary market for these shares is not expected to develop, potentially affecting liquidity.
Initial Repurchase Offers
Starting in the second quarter of 2025, the Interval Fund will begin its initial repurchase offers. This allows shareholders to sell a portion of their shares, as the Interval Fund will accept tenders for a predetermined percentage of the shares. Repurchase offers may be oversubscribed, leading to a pro-rata repurchase if demand exceeds the available shares. As a result, some investors might have to wait for subsequent offers to liquidate their investments fully.
Participation via Financial Intermediaries
After the Conversion, new classes of shares will be offered through specific financial intermediaries. It is crucial for shareholders who hold shares through such entities to confirm whether their intermediaries will facilitate the sale of shares in the Interval Fund and support the quarterly repurchase offers. Shareholders are encouraged to contact their intermediaries promptly for clarification and to understand how the Conversion will impact their accounts.
The Importance of Communication
This advisory highlights the significance of clear communication between shareholders and their financial intermediaries during this transition. It covers potential changes in the intermediary’s offerings, ensuring that investors stay informed and can make the necessary decisions regarding their investments.
Additional Information
The Fund emphasizes that this release serves purely informational purposes and is not a recommendation or solicitation to purchase or sell any common shares. BlackRock’s commitment to investor support remains strong even as the Fund shifts its structure.
About BlackRock
BlackRock aims to facilitate financial well-being for its investors through innovation and tailored solutions. As a leader in financial technology, BlackRock continues to support millions by simplifying and making investments accessible. For more information about their initiatives and services, shareowners are encouraged to visit the corporate website of BlackRock.
Frequently Asked Questions
What is the primary reason for the Fund's conversion?
The conversion aims to enhance investment strategies and provide shareholders with more options for managing their investments.
How will I be affected by the delisting?
Post-delisting, MUI Shares will no longer be listed for trading on any exchange, impacting the liquidity of your investment.
When will the first repurchase offers take place?
The Fund intends to commence the initial repurchase offers in the second quarter of 2025, following the transition.
How can shareholders get updates about the Fund?
Shareholders can find updates on performance and other data on BlackRock’s website in the “Closed-end Funds” section.
What should I do if I hold shares through an intermediary?
Contact your financial intermediary to ensure they will support the new Interval Fund and understand any impacts on your account.
