Delaware Investments National Municipal Income Fund Announces Completion of Acquisition
14 Februar 2022 - 3:43PM
Business Wire
Delaware Investments National Municipal Income Fund (NYSE
American: VFL) (“National Muni Fund”) today announced that the
acquisition of substantially all of the assets of Delaware
Investments Colorado Municipal Income Fund, Inc. (NYSE American:
VCF) (the “Colorado Muni Fund”) and Delaware Investments Minnesota
Municipal Income Fund II, Inc. (NYSE American: VMM) (the “Minnesota
Muni Fund”) was completed prior to the open of the New York Stock
Exchange on Monday, February 14, 2022 (the "Acquisition"). The
Acquisition of substantially all of the assets of the Colorado Muni
Fund and the Minnesota Muni Fund in exchange for newly issued
shares of the National Muni Fund was approved by shareholders of
each Fund at a Joint Annual Meeting of Shareholders held on October
11, 2021, adjourned to November 9, 2021, and was structured as a
tax-free transaction. Relevant details as of the closing of the
acquisition are as follows:
FUND
NAV/COMMON
SHARE ($)
CONVERSION
RATIO
Delaware Investments National Municipal
Income Fund (VFL)
$14.35
N/A
Delaware Investments Colorado Municipal
Income Fund, Inc. (VCF)
$14.82
1.0328
Delaware Investments Minnesota Municipal
Income Fund II, Inc. (VMM)
$14.26
0.9937
In connection with the Acquisition, the National Muni Fund today
issued 300 and 750 preferred shares of Series 2049-2 and Series
2049-3 (the “New Preferred Shares”), respectively, in exchange on a
one-for-one basis for the Series 2049 preferred shares of the
Colorado Muni Fund and the Series 2049 preferred shares of the
Minnesota Muni Fund, respectively. The New Preferred Shares are the
same amount and value as the Series 2049 preferred shares for which
they were exchanged, and have substantially similar terms. The New
Preferred Shares are held by a qualified institutional buyer. The
New Preferred Shares, together with the National Muni Fund’s
existing Series 2049 preferred shares, will be utilized for
leverage in an effort to obtain a higher return for the National
Muni Fund.
Delaware Investments National Municipal
Income Fund (VFL) Preferred Shares Outstanding Upon Closing of the
Acquisition
Amount
Series 2049
$30 million
Series 2049-2
$30 million
Series 2049-3
$75 million
The National Muni Fund common shares will continue to be listed
on the New York Stock Exchange trading under the ticker symbol of
“VFL”. From this point forward, however, the Colorado Muni Fund and
the Minnesota Muni Fund will no longer trade or be listed on the
New York Stock Exchange, and the Colorado Muni Fund and the
Minnesota Muni Fund will be dissolved. In early 2023, former
shareholders of Colorado Muni Fund and the Minnesota Muni Fund will
receive Forms 1099 for the calendar year 2022 that will tell them
how to report any Fund distributions for federal income tax
purposes. Questions regarding the exchange of common shares in
connection with the Acquisition should be directed to the National
Muni Fund’s transfer agent, Computershare, Inc. by calling them at
866 437-0252, or you may write them at 480 Washington Boulevard,
29-130, Jersey City, NJ 07310.
The National Muni Fund is a closed-end fund managed by Delaware
Management Company, a series of Macquarie Investment Management
Business Trust. The investment objective of the National Muni Fund
is to provide current income exempt from regular federal income tax
consistent with the preservation of capital. The National Muni Fund
has the ability to utilize leveraging techniques in an attempt to
obtain a higher return for the Fund . Currently the National Muni
Fund has outstanding three series of variable-rate preferred shares
as leverage. The total assets of the National Muni Fund were
approximately $300,752,655 million as of February 14, 2022.
No preferred shares have been registered, or are expected to be
registered, under the Securities Act of 1933 (the Securities Act)
or any state securities laws. Unless so registered, preferred
shares may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the
Securities Act and applicable state securities laws. This document
is not an offer to sell any security and is not soliciting an offer
to buy any security.
About Macquarie Asset Management
Macquarie Asset Management is a global asset manager that aims
to deliver positive impact for everyone. Trusted by institutions,
pension funds, governments, and individuals to manage more than
$US545 billion in assets globally1, we provide access to specialist
investment expertise across a range of capabilities including fixed
income, equities, multi-asset solutions, private credit,
infrastructure, renewables, natural assets, real estate, and
transportation finance.
Macquarie Asset Management is part of Macquarie Group, a
diversified financial group providing clients with asset
management, finance, banking, advisory and risk and capital
solutions across debt, equity, and commodities. Founded in 1969,
Macquarie Group employs approximately 16,400 people in 31 markets
and is listed on the Australian Securities Exchange.
Other than Macquarie Bank Limited ABN 46 008 583 542
(“Macquarie Bank”), any Macquarie Group entity noted in this
material is not an authorised deposit-taking institution for the
purposes of the Banking Act 1959 (Commonwealth of Australia). The
obligations of these other Macquarie Group entities do not
represent deposits or other liabilities of Macquarie Bank.
Macquarie Bank does not guarantee or otherwise provide assurance in
respect of the obligations of these other Macquarie Group entities.
In addition, if this document relates to an investment, (a) the
investor is subject to investment risk including possible delays in
repayment and loss of income and principal invested and (b) none of
Macquarie Bank or any other Macquarie Group entity guarantees any
particular rate of return on or the performance of the investment,
nor do they guarantee repayment of capital in respect of the
investment.
1 As at 31 December 2021
© 2022 Macquarie Management Holdings, Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20220214005542/en/
Investors Computershare 866 437-0252
delawarefunds.com/closed-end
Media Lee Lubarsky 347 302-3000
Lee.Lubarsky@macquarie.com
Sarah Stein 212 231-0323 Sarah.Stein@macquarie.com
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