BlackRock Municipal Income Fund: Tender Offer Results and Conversion Update

BlackRock Municipal Income Fund, Inc. (MUI) has announced the expiration and preliminary results of its tender offer, providing insights into the fund's liquidity and future prospects. The tender offer, which commenced on October 15, 2024, expired on November 15, 2024, and was oversubscribed by 24.2%, indicating strong shareholder interest in liquidating their positions at 98% of NAV.

Based on preliminary information, the number of shares properly tendered for the Fund and not withdrawn is noted in the table below:

| Fund Name | Ticker | CUSIP | Shares Offered for Repurchase | Shares Tendered (Preliminary Results) |
|---|---|---|---|---|
| BlackRock Municipal Income Fund, Inc. | MUI | 09253X102 | 35,996,072 | 44,715,010 |

Due to the oversubscription, the relative number of shares that will be purchased from each shareholder is expected to be prorated based on the number of shares properly tendered for the Fund. The purchase price of properly tendered and accepted shares will be 98% of the Fund's net asset value (NAV) as of the close of regular trading on the New York Stock Exchange (NYSE) on November 18, 2024.

The Fund also confirmed its planned conversion to an unlisted interval fund in Q1 2025, after which shares will no longer trade on the NYSE. Following the conversion, shareholders will have limited options to sell their shares outside of the Fund's quarterly offers to repurchase between 5% and 25% of the Fund's shares.

The conversion to an unlisted interval fund will significantly reduce share liquidity, potentially impacting valuations and trading dynamics. However, the Fund's strong shareholder interest in the tender offer suggests that investors still value the Fund's investment strategy and may continue to support it despite the reduced liquidity.

In conclusion, the preliminary results of BlackRock Municipal Income Fund's tender offer and the upcoming conversion to an unlisted interval fund provide valuable insights into the fund's liquidity and future prospects. While the conversion may impact share liquidity and trading dynamics, the Fund's strong shareholder interest in the tender offer indicates that investors remain attracted to the Fund's investment strategy. As the Fund's performance and NAV fluctuations continue to influence shareholder decisions, investors should closely monitor the Fund's progress and adapt their strategies accordingly to capitalize on emerging opportunities.