Eaton Vance Senior Floating-Rate Trust Announces Results of Special Meeting of Shareholders

BOSTON, May 13, 2021 /PRNewswire/ -- At a special meeting of shareholders held on May 12, 2021 (the "Special Meeting"), shareholders of Eaton Vance Senior Floating-Rate Trust (NYSE: EFR) (the "Fund") approved a new investment advisory agreement (the "New Agreement") with Eaton Vance Management, the Fund's investment adviser.   

Initial Tender Offer.  As previously announced on May 12, 2021, the Board authorized a conditional cash tender offer for up to 50% of the Fund's outstanding common shares at a price per share equal to 99% of the Fund's net asset value per share ("NAV") as of the close of regular trading on the New York Stock Exchange ("NYSE") on the date the tender offer expires, conditioned on Fund shareholders' approving the New Agreement (the "Initial Tender Offer").  This condition has now been met, and the Fund will commence the Initial Tender Offer by July 1, 2021 and purchase common shares tendered and accepted in the Initial Tender Offer by August 13, 2021.

Additional terms and conditions of the Initial Tender Offer will be set forth in the associated Fund offering materials and additional press releases, as applicable.  If the number of shares tendered in the Initial Tender Offer exceeds 50% of the Fund's outstanding common shares, the Fund will purchase shares from tendering shareholders on a pro rata basis (disregarding fractional shares).  Accordingly, there is no assurance that the Fund will purchase all of a shareholder's tendered common shares in the Initial Tender Offer.

Distribution Rate Increase.  On March 16, 2021, the Fund announced an increase in its regular monthly distributions on common shares of approximately 25% from the Fund's March 2021 distribution, conditioned on Fund shareholders' approval of the New Agreement.  This condition has now been met, and the distribution rate increase will be reflected in the Fund's regular monthly distribution beginning in June 2021.  Fund distributions may include amounts from sources other than net investment income.  When that is estimated to be the case, shareholders will be notified on a monthly basis.  The final determination of the tax character of Fund distributions will occur after the end of each calendar year, at which time that determination will be reported to shareholders.  Fund distributions in any period may be more or less than the net return earned by the Fund on investments, and therefore should not be used as a measure of performance or confused with "yield" or "income." Distributions in excess of Fund returns will cause the Fund's NAV to decline.

Conditional Tender Offers.  In addition to the Initial Tender Offer, the Fund announced on May 12, 2021 that it will conduct cash tender offers in the fourth quarter of each of 2022, 2023 and 2024 (each, a "Conditional Tender Offer" and, collectively with the Initial Tender Offer, the "Tender Offers") for up to 10% of the Fund's then-outstanding common shares if, from January to August of the relevant year, the Fund's shares trade at an average daily discount to NAV of more than 10%, based upon the Fund's volume-weighted average market price and NAV on each business day during the period.  If triggered, common shares tendered and accepted in a Conditional Tender Offer would be repurchased at a price per share equal to 98% of the Fund's NAV as of the close of regular trading on the NYSE on the date such Conditional Tender Offer expires.  If a Conditional Tender Offer is triggered, the Fund will issue a press release providing notification and additional information about such Conditional Tender Offer.

Eaton Vance Corp. was acquired by Morgan Stanley on March 1, 2021.  Its former Eaton Vance Management, Parametric, Atlanta Capital and Calvert investment affiliates are now part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.

About the Fund

Except 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 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. Shares of the Fund 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 therein. An investment in the Fund may not be appropriate for all investors. Before investing, prospective investors should consider carefully a Fund's investment objective, strategies, risks, charges and expenses.

This announcement is not a recommendation, an offer to purchase or a solicitation of an offer to sell shares of the Fund.  The Fund has not commenced the Tender Offers described in this release. 

The Conditional Tender Offers are subject to the conditions described above being satisfied, and may not occur.  Each Tender Offer will be made only by an offer to purchase, a related letter of transmittal and other documents filed with the SEC as exhibits to a tender offer statement on Schedule TO, with all such documents available on the SEC's website at www.sec.gov.  For each Tender Offer, the Fund will also make available to shareholders without charge the offer to purchase and the letter of transmittal.  Shareholders should read these documents carefully, as they would contain important information about the Tender Offer. 

This press release is for informational purposes only and is not intended to, and does not, constitute an offer to purchase or sell shares of the Fund. Additional information about the Fund, including performance and portfolio characteristic information, is available at eatonvance.com.

Statements in this press release that are not historical facts may be forward-looking statements, as defined by the U.S. securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to uncertainties and other factors that may be beyond the Fund's control and could cause actual results to differ materially from those set forth in the forward-looking statements.

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SOURCE Eaton Vance Management