Delaware Funds® by Macquarie Municipal Income Funds Redeeming Outstanding Preferred Shares & Issue Privately Placed Muni-Mul...
April 25 2019 - 5:31PM
Business Wire
Today, Delaware Investments Colorado Municipal Income Fund, Inc.
(VCF), Delaware Investments Minnesota Municipal Income Fund II,
Inc. (VMM) and Delaware Investments National Municipal Income Fund
(VFL) (each, a “Fund” and collectively, the “Funds”) announced that
they have successfully priced private offerings to a qualified
institutional buyer, as defined pursuant to Rule 144A under the
Securities Act of 1933, of approximately $135 million of
Muni-MultiMode Preferred Shares, Series 2049 (MMP). The net
proceeds from each offering will be used to redeem the outstanding
Variable Rate MuniFund Term Preferred Shares, Series 2021 (VMTP)
presently outstanding. The MMP shares are the same amount and value
as each Fund’s VMTP shares, as applicable.
Each Fund has issued MMP shares as follows:
Fund and corresponding common
shareticker symbol
Name of issuance and amount
Delaware Investments ColoradoMunicipal
Income Fund, Inc. (VCF)
Series 2049 $30 million
Delaware Investments MinnesotaMunicipal
Income Fund II, Inc (VMM)
Series 2049 $75 million
Delaware Investments NationalMunicipal
Income Fund (VFL)
Series 2049 $30 million
The MMP shares are a floating rate form of preferred stock with
a mandatory term redemption. The mandatory term redemption date for
these three offerings is April 1, 2049. MMP shares have the option
at either the request of the purchaser or issuer to be converted to
a variable rate demand preferred (VRDP) structure. The converted
VRDP shares could then be offered for sale to certain institutional
investors. The VRDP could continue to remain outstanding for the
remainder of the MMP shares’ 30-year term. MMP dividends will be
set weekly at a spread to the Securities Industry and Financial
Markets Association Municipal Swap Index. MMP shares represent the
preferred stock of each Fund and are senior, with priority in all
respects, to each Fund’s common shares as to payments of
dividends.
Each Fund is a closed-end fund managed by Delaware Management
Company, a series of Macquarie Investment Management Business
Trust.
The investment objective for VCF is to provide current income
exempt from regular federal income tax and Colorado state income
tax, consistent with the preservation of capital. As of March 31,
2019, VCF had total managed assets of approximately $102.1 million,
including the $30 million attributable to the VMTP shares.
The investment objective for VMM is to provide current income
exempt from regular federal income tax and Minnesota state personal
income tax consistent with the preservation of capital. As of March
31, 2019, VMM had total managed assets of approximately $241.5
million, including the $75 million attributable to the VMTP
shares.
The investment objective for VFL is to provide current income
exempt from regular federal income tax, consistent with the
preservation of capital. As of March 31, 2019, VFL had total
managed assets of approximately $95.4 million, including the $30
million attributable to the VMTP shares.
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 Investment Management
Macquarie Investment Management, a member of Macquarie Group,
includes the former Delaware Investments and is a global asset
manager with offices throughout the United States, Europe, Asia,
and Australia. As active managers, we prioritize autonomy and
accountability at the team level in pursuit of opportunities that
matter for clients. Macquarie Investment Management is supported by
the resources of Macquarie Group (ASX: MQG; ADR: MQBKY), a global
provider of asset management, investment, banking, financial and
advisory services.
Advisory services are provided by Macquarie Investment
Management Business Trust, a registered investment advisor.
Macquarie Group refers to Macquarie Group Limited and its
subsidiaries and affiliates worldwide. For more information about
Delaware Funds® by Macquarie, visit delawarefunds.com or call 800
523-1918. Other than Macquarie Bank Limited (MBL), none of the
entities referred to in this document are authorized deposit-taking
institutions for the purposes of the Banking Act 1959 (Commonwealth
of Australia). The obligations of these entities do not represent
deposits or other liabilities of MBL, a subsidiary of Macquarie
Group Limited and an affiliate of Macquarie Investment Management.
MBL does not guarantee or otherwise provide assurance in respect of
the obligations of these entities, unless noted otherwise.
FORWARD LOOKING STATEMENTS
Certain statements made or referenced in this release may be
forward-looking statements. Actual future results or occurrences
may differ significantly from those anticipated in any
forward-looking statements due to numerous factors. These include,
but are not limited to:
- Market developments, including the sale
of new preferred shares, by the funds identified in this press
release;
- Legal and regulatory developments;
and
- Other additional risks and
uncertainties.
Macquarie Investment Management and the closed-end funds managed
by Macquarie Investment Management and its affiliates undertake no
responsibility to update publicly or revise any forward looking
statements.
© 2019 Macquarie Management Holdings, Inc.
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