BLACKROCK Municipal Income TRUST V.BFK.P

Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.

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BLACKROCK Municipal Income TRUST

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Comment by gramaraon Dec 12, 2017 3:05pm

181 Views

Post# 27140735

RE:Help pls

Right now there are people who gave money to the company as debt (by buying the debentures). They collect a certain amount of interest from the debt over time, but at any time they want, they can convert the value of the debt into shares of the company. When this happens, the company no longer has the debt (i.e., they are no longer having to pay interest) and the debtor owns a piece of the company.

In this case, the terms of the deal were such that if the share price is above 3.15 for 10 days, the company can force all of the debtenture holders to convert the debt into shares. When this happens, the shares a diluted by a certain amount (however many debentures are converted), but the company will no longer have debt, which is good.

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