Eaton Vance Announces New Financing Arrangement for Three Closed-End Funds - Proceeds to be Used for a Complete Redemption of th
March 10 2008 - 3:01PM
PR Newswire (US)
BOSTON, March 10 /PRNewswire-FirstCall/ -- Eaton Vance Corp.
(NYSE:EV) announced today that three closed-end equity funds
managed by its affiliate Eaton Vance Management have secured
committed financing totaling approximately $1.6 billion that the
funds intend to use to redeem all of their outstanding auction
preferred shares ("APS"). The three closed-end funds are: Eaton
Vance Tax-Advantaged Dividend Income Fund (NYSE:EVT); Eaton Vance
Tax- Advantaged Global Dividend Income Fund (NYSE:ETG); and Eaton
Vance Tax- Advantaged Global Dividend Opportunities Fund (NYSE:ETO)
(collectively, the "Funds"). With the new financing, the Funds
intend to change their method of leverage from APS to debt. The
Funds expect to redeem in full their outstanding APS, subject to
completion of their new financing arrangements and satisfying the
notice and other requirements that apply to APS redemptions. It is
expected that each series of the Funds' APS will be redeemed at the
next dividend date after March 28, 2008. See
http://www.eatonvance.com/ under closed-end fund press releases to
view the Funds' announcement. To receive a hardcopy of this
information call (800) 225-6265. Eaton Vance manages 29 leveraged
closed-end funds with approximately $5 billion of APS outstanding
collectively. Completion of the intended APS redemptions being
announced today will reduce the amount of outstanding APS for Eaton
Vance-sponsored closed-end funds by approximately 32%. Eaton Vance
understands that the current disruption in the auction rate
securities market imposes significant hardship on APS holders who
need access to liquidity. Eaton Vance is working diligently to
provide liquidity solutions for its funds' remaining APS holders,
and is hopeful that it will be able to do so. Different solutions
may be most workable for different types of funds (equity, taxable
income and municipal income). The financing arrangement being
announced today is only applicable to the three equity funds; other
alternatives are being pursued for other types of funds and it is
not certain when, or if, solutions will be available to these
funds. Eaton Vance Corp., a Boston based investment management
firm, is listed on the New York Stock Exchange under the symbol EV.
Through its subsidiaries, Eaton Vance Corp. manages funds and
separate accounts for individuals and institutional clients. This
news release contains statements that are not historical facts,
referred to as "forward-looking statements." The Company's actual
future results may differ significantly from those stated in any
forward-looking statements, depending on factors such as changes in
securities or financial markets or general economic conditions, the
volume of sales and repurchases of fund shares, the continuation
investment advisory, administration, distribution and service
contracts, and other risks discussed from time to time in the
Company's filings with the Securities and Exchange Commission.
DATASOURCE: Eaton Vance Corp. CONTACT: Investors, Jonathan Isaac,
+1-617-598-8818, or Media, Jeanette Harrison-Sullivan,
+1-617-598-8920, both for Eaton Vance Corp. Web site:
http://www.eatonvance.com/
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