MFS High Yield Municipal Trust Announces Tender Offer
August 25 2023 - 4:16PM
Business Wire
MFS Investment Management® (MFS®) announced today that the Board
of Trustees (the "Board") of MFS High Yield Municipal Trust (the
"Fund") (NYSE: CMU), a closed-end management investment company,
authorized the Fund to conduct a cash tender offer (the "Tender
Offer") for up to 10% of the Fund’s outstanding common shares (the
“Shares”) at a price per Share equal to 98% of the Fund’s net asset
value (“NAV”) per Share as of the close of regular trading on the
New York Stock Exchange (“NYSE”) on the date the Tender Offer
expires. The Fund expects to commence the Tender Offer on or before
October 6, 2023.
As of July 31, 2023, the Fund had 28,325,314 shares of common
stock outstanding, 700 shares of preferred stock outstanding, and
total net assets of $105.4 million (not including preferred
shares).
The Board approved the recommendation of MFS, the Fund's
investment adviser, to authorize the Tender Offer as part of an
agreement with a large shareholder of the Fund, who had provided
notice of its intention to propose two nominees of its own choosing
for election as trustees to the Board and to ask shareholders to
approve a non-binding proposal asking the Board to authorize a
liquidity event for the Shares at the Fund’s 2023 annual meeting of
shareholders. As part of this agreement, the large shareholder has
withdrawn its proposals from consideration at the Fund’s 2023
annual meeting of shareholders and has undertaken certain
obligations until the Fund’s 2025 annual meeting of shareholders.
In addition, pursuant to the agreement, the Board has agreed to
propose that shareholders of the Fund approve a proposal for a
liquidity event at the Fund’s 2025 annual meeting of shareholders,
unless the average trading discount of the Shares is equal to or
less than 7.50% for the entirety of any consecutive 30 calendar day
period between the expiration date of the Tender Offer and July 15,
2025.
Additional terms and conditions of the Tender Offer will be set
forth in the Fund's offering materials filed with the U.S.
Securities and Exchange Commission (the “SEC”). If the number of
Shares tendered exceeds the maximum amount of the Tender Offer, the
Fund will purchase shares from tendering shareholders on a pro-rata
basis. Accordingly, there is no assurance that the Fund will
purchase all of a shareholder's tendered common shares. The Fund
may determine not to accept shares tendered in the Tender Offer
under various circumstances, as will be set forth in the offering
materials.
Further information about the Tender Offer will be announced by
future press releases and the Fund’s offering materials. This
announcement is for informational purposes only and is not a
recommendation, an offer to purchase, or a solicitation of an offer
to sell shares of the Fund and is not a prospectus, circular or
representation intended for use in the purchase or sale of Fund
shares. The Fund has not yet commenced the Tender Offer described
in this release. A Tender Offer will be made only by an offer to
purchase, a related letter of transmittal, and other documents that
will be filed with the SEC as exhibits to a tender offer statement
on Schedule TO and will be available free of charge at the SEC's
website at www.sec.gov. Shareholders should read the applicable
offer to purchase and tender offer statement on Schedule TO and
related exhibits if and when those documents are filed and become
available, as they will contain important information about the
particular Tender Offer. The Fund will also make available, without
charge, the offer to purchase and the letter of transmittal for the
Tender Offer that is conducted.
Cautionary Statement Regarding
Forward-Looking Statements
This press release may contain statements regarding plans and
expectations for the future that constitute forward-looking
statements within The Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact are
forward-looking and can be identified by the use of words such as
"may," "will," "expect," "anticipate," "estimate," "believe,"
"continue," or other similar words. Such forward-looking statements
are based on the Fund's current plans and expectations, are not
guarantees of future results or performance, and are subject to
risks and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
All forward-looking statements are as of the date of this release
only; the Fund undertakes no obligation to update or review any
forward-looking statements. You are urged to carefully consider all
such factors.
About the Fund
The Fund is a closed-end investment company product advised by
MFS Investment Management. Closed end funds, unlike open end funds,
are not continuously offered. Except pursuant to a Tender Offer,
common shares of the Fund are only available for purchase/sale on
the NYSE at the current market price. Shares may trade at a
discount to NAV. Shares of the Fund are not FDIC-insured and are
not deposits or other obligations of, or guaranteed by, any bank.
Shares of the Fund involve investment risk, including possible loss
of principal. For more complete information about the Fund,
including risks, charges, and expenses, please see the Fund's
annual and semi-annual shareholder reports or contact your
financial adviser.
About MFS Investment
Management
In 1924, MFS launched the first U.S. open end mutual fund,
opening the door to the markets for millions of everyday investors.
Today, as a full-service global investment manager serving
financial advisors, intermediaries, and institutional clients, MFS
still serves a single purpose: to create long-term value for
clients by allocating capital responsibly. That takes our powerful
investment approach combining collective expertise, thoughtful risk
management and long-term discipline. Supported by our culture of
shared values and collaboration, our teams of diverse thinkers
actively debate ideas and assess material risks to uncover what we
believe are the best investment opportunities in the market. As of
July 31, 2023, MFS manages $598.6 billion in assets on behalf of
individual and institutional investors worldwide. Please visit
mfs.com for more information.
MFS Investment Management 111
Huntington Ave., Boston, MA 02199
55768.1
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230825101891/en/
Media contacts: Dan Flaherty, +1 617.954.4256 For
shareholders/advisors: Jeffrey Schwarz, +1 617.954.5872
MFS High Yield Municipal (NYSE:CMU)
Historical Stock Chart
From Jun 2024 to Jul 2024
MFS High Yield Municipal (NYSE:CMU)
Historical Stock Chart
From Jul 2023 to Jul 2024