Five MFS Municipal Closed-End Funds Commence Issuer Tender Offers for Auction Rate Preferred Shares
09 August 2012 - 11:29PM
Business Wire
MFS® Municipal Income Trust (NYSE: MFM), MFS® Investment Grade
Municipal Trust (NYSE: CXH), MFS® California Municipal Fund (NYSE:
CCA), MFS® High Income Municipal Trust (NYSE: CXE), and MFS® High
Yield Municipal Trust (NYSE: CMU) each announced today that it
commenced an issuer tender offer for up to 100% of its outstanding
auction rate preferred shares (ARPS) at a price equal to 95% of the
ARPS’ per share liquidation preference of $25,000, or $23,750 per
share, plus any unpaid dividends accrued through September 7, 2012,
the expiration date of the tender offers. Additional terms of each
tender offer are set forth in the fund’s tender offer materials,
which have been filed with the Securities and Exchange Commission
and will be distributed to ARPS holders.
Each fund’s tender offer is conditioned upon there being validly
tendered and not withdrawn at least 70% of its outstanding ARPS,
the successful private placement of new preferred shares, the ARPS
holders approval of an amendment to each fund's bylaws to replace
Standard & Poor's with Fitch as a rating agency for the ARPS
and certain other conditions as set forth in each fund’s offer to
purchase and related letter of transmittal. The new preferred
shares, if successfully placed, will allow each fund to replace the
leverage currently obtained through tendered ARPS with new
preferred shares.
Any questions about the tender offers can be directed either to
Warren Antler at AST Fund Solutions, the information agent for the
tender offers, at 212-400-2605, or Justin Miller of MFS at
800-343-2829, ext. 57702.
Any tender offer will be made only by an offer to purchase, a
related letter of transmittal, and related documents, which have
been filed with the Securities and Exchange Commission as exhibits
to a tender offer statement on schedule TO. The definitive proxy
materials will be mailed by each fund to holders of ARPS on the
record date for the special meeting relating to such fund’s
proposed amendment to its bylaws as described above. ARPS holders
can obtain the tender offer documents and the definitive proxy
materials free of charge on the Securities and Exchange
Commission’s website at www.sec.gov. In addition, ARPS holders may
obtain additional copies of the proxy materials, the offer to
purchase and related letter of transmittal for such fund, without
charge, by contacting the information agent for the tender offers
at 212-400-2605. ARPS holders should read these documents and
related exhibits for the applicable fund carefully as the documents
contain important information about each fund’s tender offer and
proxy solicitation.
MFS Investment Management® (MFS®) manages $285.0 billion in
assets as of July 31, 2012. The company traces its origins to 1924
and the creation of America's first mutual fund.
This release is not a prospectus, circular or representation
intended for use in the purchase or sale of fund shares. Shares of
the funds are not FDIC-insured and are not deposits or other
obligations of, or guaranteed by, any bank. Shares of the funds
involve investment risk, including possible loss of principal. For
more complete information about each fund, including risks,
charges, and expenses, please see the fund’s annual and semi annual
shareholder report.
The funds are closed-end funds. Common shares of the funds are
only available for purchase/sale on the NYSE at the current market
price, except MFS California Municipal Fund, which is available for
purchase/sale on the NYSE/AMEX at the current market price. Common
shares may trade at a discount to NAV.
MFS Investment Management500 Boylston
St., Boston, MA 02116
25718.1
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