NEW YORK--(BUSINESS WIRE)--BlackRock Advisors, LLC today announced the declaration of a special distribution for BlackRock MuniYield California Fund, Inc. (NYSE: MYC) and BlackRock MuniYield California Quality Fund, Inc. (NYSE: MCA) and an early distribution for BlackRock MuniHoldings California Quality Fund, Inc. (NYSE: MUC and collectively with MYC and MCA, the “Funds,” and each, a “Fund”) in connection with the reorganizations of MYC and MCA into MUC, with MUC continuing (the “Combined Fund”) as the surviving Fund (the “Reorganizations”).
With respect to MYC and MCA, the special distribution declared today represents undistributed net investment income earned through the effective date of the Reorganizations. In order to maintain status as a regulated investment company and to avoid the imposition of a corporate level income tax, each of MYC and MCA are required to declare a distribution of all net investment income prior to the consummation of the Reorganizations as described below. Other than the special distribution announced today, MYC and MCA will declare no further distributions prior to or following the Reorganizations. As this special distribution includes all net investment income earned by each Fund in earlier periods and not previously distributed, it is not indicative of the amount of the Combined Fund’s future monthly distributions.
MYC and MCA are declaring a special distribution that will be payable on May 2, 2022. The ex-dividend date for the distribution is April 6, 2022 and the record date is April 7, 2022. Accordingly, persons who are holders of record of MYC or MCA common shares on April 7, 2022 should expect to receive the distribution. The distribution payable to shareholders of MYC or MCA will be paid in cash. Common shares of MYC or MCA acquired after April 5, 2022 will not be entitled to the distribution.
MUC is declaring early its monthly distribution that will be payable on May 2, 2022. The ex-dividend date for the distribution is April 6, 2022, and the record date is April 7, 2022. Accordingly, persons who are holders of record of MUC common shares on April 7, 2022 should expect to receive the distribution. Common shares of MUC acquired after April 5, 2022 will not be entitled to the distribution.
Common shares of MYC or MCA acquired after April 5, 2022 will not be entitled to their respective special distributions and will not be eligible to receive a distribution until an initial distribution is declared on the Combined Fund after the closing of the Reorganizations. We expect that on May 2, 2022 the Combined Fund will declare its first monthly distribution payable on June 1, 2022.
It is currently expected that the Reorganizations will be completed by the open of business on the New York Stock Exchange on April 11, 2022, subject to the satisfaction of customary closing conditions. To facilitate the Merger, all shares of MYC and MCA will cease trading on the NYSE as of market close on Friday, April 8, 2022. Each Reorganization, if completed, would occur based on the relative net asset values of the common shares of the applicable Funds. Prior to the Reorganization of MCA and MYC with and into MUC, all of the Variable Rate Demand Preferred Shares of MCA and MYC will be refinanced into Variable Rate Muni Term Preferred Shares (“VMTP Shares”). Holders of the VMTP Shares of MCA and MYC would receive on a one-for-one basis, newly issued VMTP Shares of MUC in an amount equal to the aggregate VMTP Share liquidation preference (including any accumulated and unpaid dividends) held by holders of MCA and MYC VMTP Shares, as applicable, immediately prior to the Reorganizations.
Distribution details are as follows:
Declaration- 3/18/2022 Ex-Date- 4/6/2022 Record- 4/7/2022 Payable- 5/2/2022
Fund |
Ticker |
Per-Share Distribution |
BlackRock MuniYield California Fund, Inc |
MYC |
$0.061300 |
BlackRock MuniYield California Quality Fund, Inc. |
MCA |
$0.056000 |
BlackRock MuniHoldings California Quality Fund, Inc |
MUC |
$0.055000 |
This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the BlackRock funds, including MUC, the surviving Fund in the Reorganizations.
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