MFS Investment Grade Municipal Trust announces an Equity Buyback for 15% of its issued share capital.
July 11, 2017 at 09:30 am IST
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MFS Investment Grade Municipal Trust announces a share repurchase program. Under the program, The company will repurchase up to 15% the fund's outstanding common shares. The company expects to initiate the offer on or before August 8, 2017. As of June 30, 2017, the company had 11,586,957 shares of common stock outstanding.
On August 8, 2017, the company commenced the tender offer. Under the offer, the company will repurchase up to 1,738,044 shares, representing 15% of its outstanding common shares. The shares will repurchased at price equal to 98% of the net asset value of the common shares. The offer will be funded from cash on hand and proceeds of sales of securities in the Fund’s investment portfolio. The shares repurchased by the Fund pursuant to the offer will become authorized but unissued shares. The offer will expire on September 6, 2017.
Georgeson LLC acted as information agent and Computershare Trust Company, N.A. acted as depositary acted as depositary to the company.
MFS Investment Grade Municipal Trust (the Fund) is a diversified closed-end management investment company. The Fundâs investment objective is to seek high current income exempt from federal income tax, but may also consider capital appreciation. The Fund invests, under normal market conditions, at least 80% of its net assets, including assets attributable to preferred shares and borrowings for investment purposes, in tax-exempt bonds and tax-exempt notes. The Fund may also invest in below-investment grade quality debt instruments. It invests in various sectors, such as healthcare, general obligations, universities, water and sewer utilities, toll roads, student loan, airports, and state and local appropriations. The fund offers a Dividend Reinvestment and Cash Purchase Plan that allows common shareholders to reinvest either all the distributions paid by the fund or only the long-term capital gains. The Fund's investment adviser is Massachusetts Financial Services Company.