Eaton Vance raises $190 million in IPO of high-yield bond term trust

New York, May 26 – Eaton Vance Management said it raised $190 million in the initial public offering of the Eaton Vance High Income 2021 Target Term Trust, a closed-end fund that will primarily invest in high-yield corporate debt obligations.

The trust will issue 19 million shares at $10.00 per share, according to a news release. There is a greenshoe for a further 2.85 million shares.

Trading in the new fund began Thursday on the New York Stock Exchange under the ticker “EHT.”

The trust aims to deliver high current income and to return $9.85 per share before deducting offering costs to holders of its shares on July 1, 2021.

Under normal circumstances at least 80% of the assets will be invested in corporate debt obligations and at least 80% in high-yield corporate debt obligations up until the wind-up period, which begins three to 12 months before termination.

The maximum maturity will be six months beyond the termination date.

Wells Fargo Securities and UBS Investment Bank were lead managers for the IPO.

Eaton Vance Management is a subsidiary of Boston-based asset manager Eaton Vance Corp.

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