Board Approves Leverage Refinancing Plan for MFS Municipal Income Trust, MFS Investment Grade Municipal Trust, MFS California...
10 Febbraio 2016 - 10:15PM
Business Wire
MFS Municipal Income Trust (NYSE: MFM), MFS Investment Grade
Municipal Trust (NYSE: CXH), MFS California Municipal Fund (NYSE
MKT: CCA), MFS High Income Municipal Trust (NYSE: CXE), and MFS
High Yield Municipal Trust (NYSE: CMU) today announced that the
Board of Trustees of each fund has approved a refinancing plan that
is expected to result in the outstanding leverage remaining
unchanged for each fund. As part of the refinancing plan, each fund
plans to redeem all of its currently outstanding Variable Rate
Municipal Term Preferred Shares, Series 2016/9 (the “Series 2016/9
VMTPS”) which have a September 2016 maturity date. In addition,
each of MFM, CXH, CXE and CMU plan to redeem all of its currently
outstanding auction rate municipal preferred shares (“ARPS”). The
redemption of each fund’s respective Series 2016/9 VMTPS and ARPS
will be subject to the receipt of financing in the form of new
preferred leverage. The Series 2016/9 VMTPS and ARPS will be
redeemed at their respective liquidation preferences per share plus
additional amounts representing any dividend amounts owed. Taking
into account the relatively small amount of ARPS of each fund that
remain outstanding following tender offers conducted in 2012, the
availability of replacement leverage and other factors, the
respective Board of each fund approved the redemption of the
remaining ARPS at full liquidation preference as being in the best
interests of the fund and its shareholders.
Details regarding the specific terms and timing of the
above-described redemptions will be communicated as appropriate at
a later date through filings with the Securities and Exchange
Commission and public press releases.
About MFS Investment
ManagementEstablished in 1924, MFS is an active, global
asset manager with investment offices in Boston, Hong Kong, London,
Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto. We
employ a uniquely collaborative approach to build better insights
for our clients. Our investment approach has three core elements:
integrated research, global collaboration and active risk
management. As of January 31, 2016, MFS manages US$397.6 billion in
assets on behalf of individual and institutional investors
worldwide. Please visit mfs.com for more information.
Statements made in this release that look forward in time
involve risks and uncertainties and are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Such risks and uncertainties include, without limitation,
the adverse effect from a decline in the securities markets or a
decline in a fund’s performance, a general downturn in the economy,
competition from other closed-end investment companies, changes in
government policy or regulation, inability of a fund’s investment
adviser to attract or retain key employees, inability of a fund to
implement its investment strategy, inability of a fund to manage
rapid expansion and unforeseen costs and other effects related to
legal proceedings or investigations of governmental and
self-regulatory organizations.
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MFS Investment ManagementShareholders or Advisors (investment
product information):Jeff Schwarz, 800-343-2829, ext. 55872orMedia
Only:James Aber, 617-954-6154orDan Flaherty, 617-954-4256
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