Eaton Vance (EV) to Raise $275M in IPO of Closed-End Fund: Eaton Vance National Municipal Opportunities Trust

May 27, 2009 2:00 PM EDT

Eaton Vance Corp. (NYSE: EV) announced today the initial public offering of common shares of its new closed-end fund, Eaton Vance National Municipal Opportunities Trust. The Trust is issuing 13.75 million shares at an initial price of $20.00 per share, resulting in gross proceeds of $275 million. Up to approximately 2.1 million additional shares may be issued upon exercise of the underwriters' overallotment option, which may not occur. According to industry sources, this is the largest initial public offering of a listed closed-end fund in the U.S. since 2007. The Trust begins trading today on the New York Stock Exchange under the ticker symbol "EOT."

The Trust's primary investment objective is to provide current income exempt from federal income tax. The Trust will, as a secondary investment objective, seek to achieve capital appreciation. Eaton Vance National Municipal Opportunities Trust intends to make distributions of tax-exempt income on a monthly basis. The Trust will invest primarily in municipal obligations that, at the time of investment, are investment grade quality.

The underwriting syndicate was led by UBS Investment Bank and included Citi, Merrill Lynch & Co., Morgan Stanley and Wachovia Securities.

Eaton Vance Management, a wholly owned subsidiary of Eaton Vance Corp., is the Fund's investment adviser.

In the third quarter of its fiscal 2009, Eaton Vance Corp. expects to recognize a structuring fee expense of approximately $2.7 million in connection with the offering, in addition to distribution-related compensation expenses.

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• UBS
• Citi
• Morgan Stanley
• Merrill Lynch
• Wachovia

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