SCHEDULE 13D/A: Saba Capital Nominates Director for BNY Mellon Strategic Municipals

Saba Capital Management, an activist investor, has nominated Paul Kazarian as an independent director for election to the Board of BNY Mellon Strategic Municipals, Inc. at its 2026 annual meeting.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (collectively, the "Reporting Persons") jointly filed an Amendment No. 6 to Schedule 13D.
• The Reporting Persons beneficially own an aggregate of 6,076,820 common shares of BNY Mellon Strategic Municipals, Inc.
• This ownership represents 9.76% of the issuer's common stock, calculated based on 62,290,854 shares outstanding as of September 30, 2025.
• Approximately $35,993,261 was paid to acquire the reported common shares.
• The primary purpose of the transaction is to nominate Paul Kazarian as an independent director for election to the Board at the issuer's 2026 annual meeting of shareholders.
• No transactions in the common shares have occurred since the previous Schedule 13D/A filing on December 17, 2025.

Sentiment

Score: 5

Explanation: Neutral. The filing indicates an activist investor's intent to nominate a director, which can be seen as positive for shareholder advocacy but potentially disruptive for current management. It does not report financial results or operational performance.

Positives

• Saba Capital Management, an experienced investment manager, is actively engaged with BNY Mellon Strategic Municipals, Inc., potentially advocating for shareholder interests.
• The nomination of an independent director could introduce fresh perspectives and enhance corporate governance.

Negatives

• The nomination of an independent director by an activist investor suggests potential dissatisfaction with current management or board composition, which could lead to a contested election.
• The use of margin account borrowings for share purchases introduces financial leverage for the Reporting Persons.

Risks

• The Reporting Persons' investment strategy involves margin account borrowings, which can amplify both gains and losses.
• A contested director election could create uncertainty and potentially divert management resources.

Future Outlook

Saba Capital Management intends to pursue the election of Paul Kazarian as an independent director at BNY Mellon Strategic Municipals, Inc.'s 2026 annual meeting of shareholders, indicating a future focus on corporate governance and potential strategic changes.

Management Comments

• Saba Capital Management's stated purpose is to nominate Paul Kazarian as an independent director for election to the Board at the Issuer's 2026 annual meeting of shareholders.

Industry Context

This filing reflects a common trend of activist investors taking significant stakes in closed-end funds to advocate for changes, often related to discounts to Net Asset Value (NAV), distribution policies, or board composition. Saba Capital Management is a prominent activist in the closed-end fund space.

Comparison to Industry Standards

• NA This filing primarily details an activist investor's stake and intent, rather than financial performance or operational results that would allow for direct comparison to industry benchmarks or specific comparable companies/projects.

Management Changes

Corporate Governance

Legal Proceedings

• The Reporting Persons (Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein) have not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) during the last five years.
• The Reporting Persons have not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction that resulted in a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws during the last five years.

Related Party Transactions

• NA No related party transactions involving the issuer were disclosed in this filing.

Stakeholder Impact

• Shareholders: Will have the opportunity to vote on the nominated director at the 2026 annual meeting, potentially influencing the company's future direction and governance.
• Current Management/Board: May face a challenge to their current composition and strategic direction from the activist investor's nominee.

Next Steps

• Saba Capital Management will proceed with the nomination of Paul Kazarian for election to the Board at BNY Mellon Strategic Municipals, Inc.'s 2026 annual meeting of shareholders.

Key Dates

Keywords

Saba Capital Management, BNY Mellon Strategic Municipals, Schedule 13D, Activist Investor, Director Nomination, Corporate Governance, Shareholder Activism, Closed-End Fund, Municipal Bonds