BlackRock Advisors, LLC today announced the declaration of a special distribution for The BlackRock Strategic Municipal Trust (NYSE: BSD), BlackRock MuniYield Investment Quality Fund (NYSE: MFT), BlackRock Municipal Income Investment Trust (NYSE: BBF), and BlackRock Municipal Income Trust II (NYSE: BLE and collectively with BSD, MFT and BBF, the “Funds,” and each, a “Fund”) in connection with the reorganizations of BSD, MFT, and BBF into BLE, with BLE continuing (the “Combined Fund”) as the surviving Fund (the “Reorganizations”).
With respect to each of the Funds, 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 BSD, MFT, and BBF 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, BSD, MFT, and BBF 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.
BSD, MFT, and BBF are declaring a special distribution that will be payable on May 3, 2021. The ex-dividend date for the distribution is April 7, 2021 and the record date is April 8, 2021. Accordingly, persons who are holders of record of BSD, MFT, or BBF common shares on April 8, 2021 should expect to receive the distribution. The distribution payable to shareholders of BSD, MFT, or BBF will be paid in cash. Common shares of BSD, MFT, or BBF acquired after April 6th, 2021 will not be entitled to the distribution.
BLE is declaring a special distribution that will be payable on May 3, 2021. The ex-dividend date for the distribution is April 7, 2021, and the record date is April 8, 2021. Accordingly, persons who are holders of record of BLE common shares on April 8, 2021 should expect to receive the distribution. Common shares of BLE acquired after April 6th, 2021 will not be entitled to the distribution.
Common shares of BSD, MFT, or BBF acquired after April 6th, 2021 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 3, 2021 the Combined Fund will declare its first monthly distribution payable on June 1, 2021.
It is currently expected that the Reorganizations will be completed by the open of business on the New York Stock Exchange on April 12, 2021, subject to the satisfaction of customary closing conditions. To facilitate the Merger, all shares of BSD, MFT, and BBF will cease trading on the NYSE as of market close on Friday, April 9, 2021. Each Reorganization, if completed, would occur based on the relative net asset values of the common shares of the applicable Funds. In addition, holders of Variable Rate Muni Term Preferred Shares (“VMTP Shares”) of each of BSD, MFT, and BBF would receive on a one-for-one basis VMTP Shares of BLE in an amount equal to the aggregate VMTP Share liquidation preference (including any accumulated and unpaid dividends) held by holders of BSD, MFT, and BBF VMTP Shares immediately prior to the Reorganizations.
Distribution details are as follows:
Declaration- 3/19/2021 Ex-Date- 4/7/2021 Record- 4/8/2021 Payable- 5/3/2021
The BlackRock Strategic Municipal Trust
BlackRock MuniYield Investment Quality Fund
BlackRock Municipal Income Investment Trust
BlackRock Municipal Income Trust II
This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the BlackRock funds, including BLE, the surviving Fund in the Reorganizations.
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