BlackRock Announces Results of Shareholder Vote at Adjourned Joint Special Shareholder Meeting Relating to the Reorganizations of Three Municipal Closed-End Funds
BlackRock Advisors announced that shareholders of BlackRock New York Municipal Income Trust (NYSE: BNY) have approved the reorganization of BlackRock New York Municipal Income Quality Trust (NYSE: BSE) and BlackRock New York Municipal Income Trust II (NYSE: BFY) into BNY. This reorganization process is expected to complete in early Q2 2021, subject to customary closing conditions, and will utilize the relative net asset values of the Funds’ common shares. Holders of BSE and BFY Variable Rate Muni Term Preferred Shares will receive equivalent Variable Rate Demand Preferred Shares of BNY.
- Shareholder approval for the reorganization enhances operational efficiency.
- Expected completion of reorganization in early Q2 2021 could stabilize the fund structure.
- The reorganization may create uncertainty for holders of BSE and BFY shares until completed.
- Investors face potential volatility during the transition period.
BlackRock Advisors, LLC announced today that, at a special meeting of shareholders (the “Meeting”) of BlackRock New York Municipal Income Trust (NYSE: BNY), the requisite votes of shareholders of BNY have approved the reorganization of each of BlackRock New York Municipal Income Quality Trust (NYSE: BSE) and BlackRock New York Municipal Income Trust II (NYSE: BFY and collectively with BSE and BNY, the “Funds,” and each, a “Fund”) with and into BNY, with BNY continuing as the surviving Fund, and the transactions contemplated thereby (together, the “Reorganizations”). Shareholders of each of BSE and BFY previously approved the applicable Reorganization at a joint special meeting of shareholders.
It is currently expected that the Reorganizations will be completed in the beginning of the second quarter of 2021, subject to the satisfaction of customary closing conditions. Each Reorganization, if completed, would occur based on the relative net asset values of the common shares of the applicable Funds. Prior to the Reorganizations, all of the Variable Rate Muni Term Preferred Shares of BNY will be refinanced into Variable Rate Demand Preferred Shares (“VRDP Shares”). Holders of VRDP Shares of BSE and BFY would receive on a one-for-one basis VRDP Shares of BNY in an amount equal to the aggregate VRDP Share liquidation preference (including any accumulated and unpaid dividends) held by holders of BSE and BFY VRDP Shares immediately prior to the Reorganizations.
This press release is not intended to, and does not, constitute an offer to purchase or sell shares of the Funds.
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Annual and Semi-Annual Reports and other regulatory filings of the Funds with the SEC are accessible on the SEC's website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock’s website is not a part of this press release.
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FAQ
What is the recent announcement regarding BlackRock New York Municipal Income Trust (BNY)?
When will the reorganization of BNY, BSE, and BFY take place?
What will happen to the Variable Rate Muni Term Preferred Shares of BNY after the reorganization?
How do holders of BSE and BFY shares benefit from the reorganization?
