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 Management
Established
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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