ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC. ANNOUNCES PLAN FOR FULL REDEMPTION OF 2018 VARIABLE RATE MUNIFUND TERM PREFERRED SHARES AND CREATION OF TENDER OPTION BOND TRUSTS AS SUBSTITUTE LEVERAGE

Rhea-AI Summary

AllianceBernstein National Municipal Income Fund (NYSE: AFB) intends to redeem all outstanding 2018 Variable Rate MuniFund Term Preferred Shares at a redemption price of $25,000 per share, plus accumulated unpaid dividends. The aggregate redemption payment is $88.275 million. The Fund plans to effect the full redemption on or about October 27, 2025, subject to notice requirements and conditioned on the successful creation of tender option bond (TOB) trusts.

If completed, the TOB trusts will provide substitute leverage and allow the Fund to replace the leverage currently obtained through the 2018 VMTPS. The adviser and board said they believe the transaction is in the Fund's and stockholders' best interests.

Positive

• Aggregate redemption amount of $88.275 million
• Planned redemption date: on or about October 27, 2025
• Intended replacement of preferred-share leverage with TOB trusts
• Adviser and board support transaction as in stockholders' best interests

Negative

• Redemption is conditioned on successful creation of TOB trusts
• Transaction subject to certain notice and other procedural requirements
• Redemption requires a cash outflow of $88.275 million

News Market Reaction – AFB

+0.28%

+0.28% Session close to close

In the Oct 9 session, AFB gained 0.28%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, Oct. 8, 2025 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund, Inc. (the "Fund"; NYSE: AFB), a registered closed-end investment company, announced today that it intends to use proceeds from the creation of tender option bond ("TOB") trusts by the Fund to redeem all of the Fund's currently outstanding 2018 Variable Rate MuniFund Term Preferred Shares ("2018 VMTPS") at a redemption price of $25,000 per share, plus accumulated but unpaid dividends.  The aggregate amount to be paid by the Fund in connection with the redemption of the 2018 VMTPS is $88.275 million, plus accumulated but unpaid dividends.

The redemption of the 2018 VMTPS is subject to certain notice and other requirements and conditioned upon the successful creation of the TOB trusts.  The Fund intends to redeem the 2018 VMTPS on or about October 27, 2025. 

The TOB trusts, if successfully created, will allow the Fund to replace the leverage currently obtained through the 2018 VMTPS with proceeds from the TOB trusts.  AllianceBernstein L.P., the Fund's investment adviser, and the Board of Directors of the Fund believe the full redemption of the 2018 VMTPS and proposed creation of the TOB trusts is in the best interests of the Fund and its stockholders.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

View original content:https://www.prnewswire.com/news-releases/alliancebernstein-national-municipal-income-fund-inc-announces-plan-for-full-redemption-of-2018-variable-rate-munifund-term-preferred-shares-and-creation-of-tender-option-bond-trusts-as-substitute-leverage-302578841.html

SOURCE AllianceBernstein National Municipal Income Fund, Inc.

FAQ

What is AllianceBernstein National Municipal Income Fund (AFB) redeeming on October 27, 2025?

The Fund intends to redeem all outstanding 2018 Variable Rate MuniFund Term Preferred Shares at $25,000 per share, plus accumulated unpaid dividends, on or about October 27, 2025.

How much will AFB pay to redeem the 2018 VMTPS?

The aggregate amount to be paid for the redemption is $88.275 million, plus accumulated but unpaid dividends.

What will AFB use instead of the 2018 preferred shares for leverage?

The Fund intends to create tender option bond (TOB) trusts and use proceeds from those trusts to replace leverage obtained through the 2018 VMTPS.

Is the AFB redemption guaranteed to occur on October 27, 2025?

No. The redemption is conditioned on successful creation of the TOB trusts and certain notice and procedural requirements.

Who supports AFB's plan to redeem the 2018 VMTPS and create TOB trusts?

AllianceBernstein L.P., the Fund's investment adviser, and the Fund's Board of Directors indicated they believe the actions are in the best interests of the Fund and stockholders.