BOSTON, May 13, 2021 / PRNewswire / – At a special meeting of shareholders held on May 12, 2021 (the âSpecial Meetingâ), the shareholders of Eaton Vance Senior Floating-Rate Trust (NYSE: EFR) (the âFundâ) have approved a new investment advisory agreement (the âNew Agreementâ) with Eaton Vance Management, the Fund’s investment advisor.
Initial purchase offer. As previously announced on May 12, 2021, the Board of Directors has authorized a conditional cash tender offer for up to 50% of the outstanding common shares of the Fund at a price per share equal to 99% of the net asset value per share of the Fund (âNAV ) At the close of regular trading on the New York Stock Exchange (“NYSE”) on the expiry date of the tender offer, subject to the approval of the new agreement by the shareholders of the Fund (l ‘âInitial public tender offerâ). This condition is now fulfilled and the Fund will launch the initial public tender offer by July 1, 2021 and purchase common shares deposited and accepted as part of the initial public tender offer by August 13, 2021.
Additional terms and conditions of the initial takeover bid will be set out in the associated fund offering documents and additional press releases, if applicable. If the number of shares deposited under the initial public tender offer exceeds 50% of the outstanding common shares of the Fund, the Fund will purchase shares from the shareholders who tendered on a pro rata basis (without taking into account fractions of shares ). Accordingly, there can be no assurance that the Fund will purchase all of the common shares tendered by a shareholder under the initial takeover bid.
Increased payout rate. At March 16, 2021, the Fund announced an increase in its regular monthly distributions on common shares of approximately 25% compared to March 2021 distribution, subject to the approval of the New Agreement by the shareholders of the Fund. This condition is now met and the increase in the distribution rate will be reflected in the regular monthly distribution of the Fund as of June 2021. Distributions from the Fund may include amounts from sources other than net investment income. When this is considered to be the case, shareholders will be informed on a monthly basis. The final determination of the tax character of the Fund’s distributions will take place after the end of each calendar year, on which date this determination will be communicated to the shareholders. Distributions from the Fund in any period may be greater or less than the net return obtained by the Fund on investments and therefore should not be used as a measure of performance or confused with âreturnâ or âincomeâ. Distributions in excess of the Fund’s returns will cause the net asset value of the Fund to decline.
Conditional purchase offers. In addition to the initial public tender offer, the Fund announced the May 12, 2021 that it will conduct cash take-over bids during the fourth quarter of each of the periods 2022, 2023 and 2024 (each, a “conditional take-over bid” and, collectively with the initial public tender offer , âTakeover Bidsâ) up to 10% of the then outstanding Common Shares of the Fund if, from January to August of the relevant year, the shares of the Fund trade at an average daily discount to at the net asset value of more than 10%, based on the volume weighted average price and the net asset value of the Fund on each business day during the period. In the event of a trigger, common shares tendered and accepted under a conditional public tender offer would be repurchased at a price per share equal to 98% of the net asset value of the Fund at the close of regular trading on the NYSE at the expiry date of this conditional takeover bid. If a conditional takeover bid is triggered, the Fund will issue a press release providing notification and additional information about such conditional takeover bid.
Eaton Vance Corp. was acquired by Morgan Stanley on 1st of March, 2021. Its former investment subsidiaries Eaton Vance Management, Parametric, Atlanta Capital and Calvert are now part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
About the Fund
Except as part of a takeover bid, the common shares of the Fund are available for purchase or sale only through secondary market transactions at their current market price. Closed-end fund stocks often trade at a discount to their net asset value. The market price of the shares of the Fund may vary from the net asset value depending on factors affecting the supply and demand of shares, such as the distribution rates of the Fund compared to similar investments, investors’ expectations regarding future distribution changes, clarity of the Fund’s investment strategy and expectations of future returns. , and investor confidence in the underlying markets in which the Fund invests. Shares of the Fund are subject to investment risk, including the possible loss of invested capital. Shares of the Fund are not FDIC insured and do not constitute deposits or other obligations of, or guaranteed by, any bank. The Fund is not a complete investment program and you could lose money investing in it. An investment in the Fund may not be suitable for all investors. Before investing, potential investors should carefully consider the investment objective, strategies, risks, costs and expenses of a Fund.
This announcement is not a recommendation, an offer to buy or a solicitation of an offer to sell shares of the Fund. The Fund has not launched the takeover bids described in this press release.
Conditional Public Purchase Bids are subject to compliance with the conditions described above and may not take place. Each take-over bid will be made solely by way of a take-over bid, related cover letter and other documents filed with the SEC as attachments to a take-over bid statement on the Schedule TO, with all such documents available on the SEC website at www.sec.gov. For each Public Takeover Offer, the Fund will also make the takeover offer and the cover letter available to shareholders free of charge. Shareholders are invited to read these documents carefully, as they would contain important information about the Tender Offer.
This press release is provided for informational purposes only and is not intended to constitute, and does not constitute, an offer to buy or sell shares of the Fund. Additional information about the Fund, including information on the performance and characteristics of the portfolio, is available at eatonvance.com.
Statements in this press release that are not historical facts may be forward-looking statements, as defined by United States securities laws. You should exercise caution in interpreting and relying on forward-looking statements, as they are subject to uncertainties and other factors which may be beyond the control of the Fund and could cause actual results to differ materially from. those set forth in forward-looking statements.
SOURCE Eaton Vance Management