Eaton Vance California Municipal Bond Fund and Eaton Vance New York Municipal Bond Fund Announce Liquidation Proposal
Eaton Vance California Municipal Bond Fund (NYSE:EVM) and Eaton Vance New York Municipal Bond Fund (NYSE:ENX) (each a "Fund" and, together, the "Funds") each announced today that the Board of Trustees of its respective Fund (each, a "Board"), at the recommendation of Eaton Vance Management, the Fund's investment adviser, has approved a proposal to liquidate and terminate the Fund (the "Liquidation"). The Liquidation is subject to approval by each Fund's shareholders, who will be asked to vote on the proposal at the Fund's 2025 Annual Meeting of Shareholders, which is scheduled to take place on September 23, 2025 (the "Annual Meeting").
In determining to recommend the Liquidation for approval by each Fund's shareholders, the Adviser and each Board considered a variety of factors and ultimately determined that the Liquidation would be in the best interests of its respective Fund and the Fund's shareholders.
Important information about the proposed Liquidation and the Annual Meeting will be included in the proxy materials that will be sent or given to shareholders of record of each Fund as of July 14, 2025, the record date, in advance of the Annual Meeting. Shareholders are advised to read the proxy statement when it is available.
In addition, the Adviser has entered into standstill agreements with Saba Capital Management, L.P. ("Saba"), a large shareholder of each Fund, in connection with the proposed Liquidation. Under the terms of each agreement, Saba has agreed, among other things, to withdraw its shareholder proposals for the Annual Meeting, including its nominees to serve on each Fund's Board, and vote in support of the Liquidation. Each Fund has been advised that Saba will file a copy of each agreement with the Securities and Exchange Commission as an exhibit to its relevant Schedule 13D.
This press release is not a recommendation, an offer to purchase, or a solicitation of an offer to sell shares of the Fund and is not a prospectus, circular or representation intended for use in the purchase or sale of Fund shares.
About the Fund
Except for sales of shares pursuant to a tender offer, common shares of the Fund are available for purchase or sale only through secondary market trading at their current market price. Shares of closed-end funds (such as the Fund) often trade at a discount from their NAV. The market price of Fund shares may vary from NAV based on factors affecting the supply and demand for shares, such as Fund distribution rates relative to similar investments, investors' expectations for future distribution changes, the clarity of the Fund's investment strategy and future return expectations, and investors' confidence in the underlying markets in which the Fund invests. Fund shares are subject to investment risk, including possible loss of principal invested. Fund shares are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. The Fund is not a complete investment program and you may lose money investing in the Fund. An investment in the Fund may not be appropriate for all investors. Before investing in the Fund, prospective investors should consider carefully the Fund's investment objective, strategies, risks, charges and expenses.
Eaton Vance is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
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