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.
March 7 (Bloomberg) -- Aberdeen Global Income Fund Inc. plans to buy back all its auction-rate debt, the first closed- end fund to take the step since the market seized up in mid- January.
The fund will redeem $30 million of auction-rate securities known as preferred shares, replacing them with loans from a major financial institution, the fund said today in a statement.
This is double good news. The investors stuck in these auction rate preferreds will be able to get their money back and the funds have found financing that will allow them to avoid a forced liquidation of their bonds. Maybe the muni market will survive after all.