ALLIANCEBERNSTEIN NATIONAL MUNICIPAL INCOME FUND, INC. ANNOUNCES COMPLETION OF 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) announced on October 27, 2025 that it completed the full redemption of its 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 paid for the redemption was $88.275 million, plus accumulated but unpaid dividends.

The Fund said it used proceeds from the creation of tender option bond (TOB) trusts to effect the redemption and to replace the leverage previously provided by the 2018 VMTPS.

Positive

• $88.275 million of 2018 VMTPS redeemed in full
• Leverage replaced via newly created tender option bond (TOB) trusts

Negative

• None.

Argus Oct 28 session

+0.64% close to close 1.5x rel. volume Open Argus

Details

News Market Reaction – AFB

On Oct 28, the first trading day after this news, AFB closed 0.64% above the previous close. That session’s volume was 1.5x the stock’s average daily volume.

Data tracked by StockTitan Argus for the Oct 28 session.

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NEW YORK, Oct. 27, 2025 /PRNewswire/ -- AllianceBernstein National Municipal Income Fund, Inc. (the "Fund"; NYSE: AFB), a registered closed-end investment company, announced today that it used the proceeds from the creation of tender option bond ("TOB") trusts by the Fund to redeem all of its 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 paid by the Fund in connection with the redemption of the 2018 VMTPS was $88.275 million, plus accumulated but unpaid dividends.  The issuance permitted the Fund to replace the leverage previously obtained through the 2018 VMTPS with proceeds from the TOB trusts. 

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-completion-of-full-redemption-of-2018-variable-rate-munifund-term-preferred-shares-and-creation-of-tender-option-bond-trusts-as-substitute-leverage-302595711.html

SOURCE AllianceBernstein National Municipal Income Fund, Inc.

FAQ

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What did AFB announce on October 27, 2025 regarding its 2018 VMTPS?

AFB completed the full redemption of its 2018 VMTPS at $25,000 per share, paying an aggregate $88.275 million plus accumulated dividends.

How did AFB fund the redemption of the 2018 VMTPS (NYSE: AFB)?

The Fund used proceeds from the creation of tender option bond (TOB) trusts to fund the redemption and replace prior leverage.

What is the redemption price per share for AFB's 2018 VMTPS?

The redemption price was $25,000 per share, plus accumulated but unpaid dividends.

How much did AFB pay in total to redeem the 2018 VMTPS?

The aggregate cash payment for the redemption was $88.275 million, plus accumulated but unpaid dividends.

What does replacing leverage with TOB trusts mean for AFB shareholders?

The announcement says the Fund replaced leverage previously obtained through the 2018 VMTPS with proceeds from TOB trusts, which changes the Fund's source of leverage.

Where can investors find more details about AFB's redemption of the 2018 VMTPS?

Investors can refer to the Fund's public announcement dated October 27, 2025 for full details.