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AllianceBernstein National Municipal Income Fund's Strategic Shift

New York, NY – In a significant move that showcases its commitment to optimize shareholder value, the AllianceBernstein National Municipal Income Fund, Inc. (trading under NYSE: AFB), a registered closed-end investment company, has shared its strategic outline for fully redeeming its 2018 Variable Rate MuniFund Term Preferred Shares (VMTPS). The redemption is not only a financial maneuver but a reconfiguration of its leveraged structure, which aims to better position the Fund in the evolving municipal finance landscape.

The Fund plans to utilize the funds generated from newly created tender option bond (TOB) trusts. This strategic decision will allow for the full redemption on or around October 27, 2025, of all outstanding VMTPS at a price set at $25,000 per share. Along with the redemption price, shareholders will also receive any accumulated but unpaid dividends, culminating in a total estimated payout of about $88.275 million. This redemption is contingent on fulfilling certain notice and procedural requirements, ensuring a structured approach to the financial adjustment.

The management team, including AllianceBernstein L.P., the Fund's investment adviser, together with the Board of Directors, strongly believes that this approach aligns with the best interests of the Fund and its investors. The move to redeem the 2018 VMTPS and the associated development of TOB trusts is designed as a means of replacing existing leverage while creating a healthier balance sheet environment.

In the backdrop of increasing interest in municipal bond investments, the initiation of TOB trusts represents a forward-thinking strategy to maintain an advantageous position in a competitive market. By effectively replacing its current leverage structure through these trusts, the Fund aims to strengthen its financial foundation while potentially providing enhanced returns to its shareholders. This financial strategy underlines the proactive nature of AllianceBernstein in navigating fiscal environments that influence municipal credit markets.

Though detailed mechanics of the TOB trusts are expected to unfold upon their anticipated establishment, the Fund is set to offer clarity and comprehensive updates to its investors in due course, reinforcing transparency in its operations.

This announcement, as emphasized by the management, represents neither an offer to sell nor a solicitation for any securities purchases, adhering to regulatory guidelines while informing stakeholders of pivotal changes. Investors are encouraged to stay tuned for more updates as the Fund progresses toward implementing these significant changes. Full-scale reconfigurations such as these are vital for maintaining efficacy and maximizing shareholder involvement in a fluctuating market.

Ultimately, the strategic redemption of the 2018 VMTPS and the creation of TOB trusts encapsulates a holistic approach to municipal fund management, pointing towards a future aligned with market conditions while fulfilling obligations to investors.

With the financial landscape rapidly evolving, it will be vital for stakeholders within and outside the Fund to keep an eye on emerging trends, performance metrics, and the Fund's evolving capital strategies. The focused intent on redefining leverage through innovative instruments signifies an adaptive and strategic pathway forward, reflecting the core principles that guide the AllianceBernstein National Municipal Income Fund.

As further developments are anticipated, the market awaits the results of these investments and organizational transitions.