NEW YORK, March 07, 2025–(BUSINESS WIRE)–The Board of Directors of BNY Mellon Municipal Income, Inc. (the “Fund”), a registered closed-end fund, approved the reorganization of the Fund with and into BNY Mellon AMT-Free Municipal Bond Fund (the “Acquiring Fund”), a series of BNY Mellon Municipal Funds, Inc., a registered open-end fund. The proposed reorganization of the Fund is subject to certain conditions, including approval by the Fund’s stockholders at a special meeting of stockholders scheduled to be held on or about June 2, 2025. Stockholders of record as of the close of business on April 9, 2025 will be entitled to receive notice of and to vote at the special meeting of stockholders.
At the June 2024 Annual Stockholders Meeting of the Fund, Fund stockholders approved a non-binding proposal that the Fund’s Board of Directors consider measures to allow stockholders to “monetize” their shares of the Fund’s common stock at or close to net asset value. The Board of Directors of the Fund has determined that the proposed reorganization of the Fund with and into the Acquiring Fund is the best option in response to the stockholders’ proposal.
The Fund’s shares of common stock are listed on the New York Stock Exchange (“NYSE”) under the symbol “DMF”. If Fund stockholders approve the reorganization, the Fund’s shares of common stock would stop trading on, and would be delisted from, the NYSE on or about June 18, 2025, and the reorganization of the Fund would occur on or about June 20, 2025.
Detailed information on the proposed reorganization will be contained in proxy materials expected to be filed with the U.S. Securities and Exchange Commission (“SEC”) in the coming days.
NOTICE OF INTENT TO REDEEM PREFERRED SHARES
The Fund has filed with the SEC a notice of intention to redeem all 1,209 issued and outstanding shares of the Fund’s Variable Rate MuniFund Term Preferred Shares, designated as “Series 2023-1 Variable Rate MuniFund Term Preferred Shares,” par value $.001 per share (the “VMTP shares”). The redemption price of the VMTP shares will be the $25,000 liquidation preference per share, plus an additional amount representing the final accumulated dividend amount owed. The Fund expects to finance the redemption with the proceeds from sales of portfolio securities. Formal notification of the redemption will be delivered to holders of VMTP shares through The Depository Trust Company (DTC).
The details of the redemption of all outstanding VMTP shares of the Fund are as follows:
Fund & Common Share Symbol
Series
Share Amount
Preferred Shares CUSIP
Redemption Date
BNY Mellon Municipal Income, Inc.
2023-1
1,209
05589T401
04/02/2025
(NYSE: DMF)
The address of the redemption and paying agent of the VMTP shares, The Bank of New York Mellon, is 240 Greenwich Street, New York, New York 10286.
The VMTP shares to be redeemed have not been registered under the Securities Act of 1933 or any state securities laws, and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act of 1933 and applicable state securities laws.
TERMINATION OF DIVIDEND REINVESTMENT PLAN
The Fund has determined to terminate its dividend reinvestment plan (the “DRP”), effective June 6, 2025, pursuant to and in accordance with the terms of the DRP. As a result, the DRP will not be available for distributions by the Fund after June 6, 2025. The last distribution record date that will be eligible for participation in the DRP will be on or about May 14, 2025.
Important Information
BNY Mellon Investment Adviser, Inc., the investment adviser for the Fund and the Acquiring Fund, is part of BNY Investments. BNY Investments is one of the world’s largest asset managers, with $2 trillion in assets under management as of December 31, 2024. Through a client-first approach, BNY Investments brings investors specialist expertise through its seven investment firms offering solutions across every major asset class and backed by the breadth and scale of BNY. Additional information on BNY Investments is available on www.bny.com/investments. Follow us on LinkedIn for the latest company news and activity.
BNY Investments is a division of BNY, which has $52 trillion in assets under custody and/or administration as of December 31, 2024. Established in 1784, BNY is America’s oldest bank. Today, BNY powers capital markets around the world through comprehensive solutions that help clients manage and service their financial assets throughout the investment life cycle. BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bny.com. Follow us on LinkedIn or visit our newsroom for the latest company news.
Closed-end funds generally are traded on the secondary market through one of the stock exchanges. The Fund’s investment returns and principal values will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value of the Fund’s portfolio. There is no assurance that the Fund will achieve its investment objective.
This release is for informational purposes only and should not be considered as investment advice or a recommendation of any particular security. This release is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the BNY Funds, including the Fund or the Acquiring Fund.
In connection with the proposed reorganization, a definitive prospectus/proxy statement will be filed with the SEC. All stockholders are advised to read the definitive prospectus/proxy statement in its entirety when it becomes available because it will contain important information regarding the Fund, the Acquiring Fund, the reorganization, the Board’s considerations in recommending the reorganization, and the persons soliciting proxies in connection with the reorganization and the interests of these persons in the reorganization, as well as related matters. The definitive prospectus/proxy statement is expected to be mailed to Fund stockholders on or about April 28, 2025. Stockholders may obtain a free copy of the definitive prospectus/proxy statement (when available) and other documents filed by the Fund or the Acquiring Fund with the SEC, including the Fund’s most recent annual report to stockholders, on the SEC’s website at http://www.sec.gov, and copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov. Copies of these documents, once available, may be obtained without charge, upon request, by calling 1-800-373-9387 or by visiting www.bny.com/investments/closed-end-funds.html.
