MFS Municipal Income Trust V.MFM

Primary Symbol: MFM

MFS Municipal Income Trust (the Fund) is a diversified closed-end management investment company. Its investment objective is to seek high current income exempt from federal income tax but may also consider capital appreciation. It invests approximately 80% of its net assets, including assets attributable to preferred shares and borrowings for investment purposes, in municipal bonds. These municipal bonds include debt securities issued by or on behalf of states, territories, possessions of the United States, the District of Columbia, and their political subdivisions, agencies, or instrumentalities. The Fund invests in various sectors, such as hospitals, secondary schools, colleges, schools, and water and sewer utilities. It has investments in areas including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Guam, Hawaii, Idaho, and Illinois. Massachusetts Financial Services Company is the investment adviser of the Fund.

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MFS Municipal Income Trust

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Comment by ja_prufrockon Mar 14, 2013 10:21am

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Post# 21128943

RE: RE: Hite at PDAC

Fun,

A spin out does not necessarily entail a distribution of shares to SHs. They may use the very successful Altius founding equity stake model in which, through a shell company, MFM would contribute a given property in exchange for a percentage of equity and royalty interest in the Newco, contingent upon the Newco completing a successful IPO. Newco would then be free to develop the contributed property. while MFM would tbe free to sell all or part of the secuities in the Newco at a future date to fund their own exploration/development without dilution, while retaining the royalty in Newco. The shareholders benefit through capital appreciation of MFM.

I'm not saying that this is how this will play out here, but it is a possibility and is congruent with Hite's comments about becoming a royalty company.

Regards,

JA

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