BlackRock Announces Special Distributions Related to the Reorganization of Three Municipal Closed-End Funds
BlackRock Advisors declared a special distribution for BlackRock New York Municipal Income Quality Trust (BSE), BlackRock New York Municipal Income Trust II (BFY), and BlackRock New York Municipal Income Trust (BNY) due to the reorganizations of BSE and BFY into BNY. The special distribution includes undistributed net investment income and will be paid on May 3, 2021. The ex-dividend date is April 7, 2021, and the record date is April 8, 2021. Notably, BSE and BFY will cease trading on NYSE on April 9, 2021, ahead of the reorganization completion.
- Special distribution of $0.0945190 for BSE, $0.1599160 for BFY, and $0.1181660 for BNY.
- Reorganizations will streamline operations under one fund, potentially enhancing operational efficiency.
- Common shares of BSE and BFY acquired after April 6, 2021, will not receive the special distribution.
- Increased complexity for shareholders during the reorganization phase may lead to uncertainty.
BlackRock Advisors, LLC today announced the declaration of a special distribution for BlackRock New York Municipal Income Quality Trust (NYSE: BSE), BlackRock New York Municipal Income Trust II (NYSE: BFY), and BlackRock New York Municipal Income Trust (NYSE: BNY and collectively with BSE and BFY, the “Funds,” and each, a “Fund”) in connection with the reorganizations of BSE and BFY into BNY, with BNY 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 BSE and BFY 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, BSE and BFY 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.
BSE and BFY 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 BSE or BFY common shares on April 8, 2021 should expect to receive the distribution. The distribution payable to shareholders of BSE or BFY will be paid in cash. Common shares of BSE or BFY acquired after April 6th, 2021 will not be entitled to the distribution.
BNY 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 BNY common shares on April 8, 2021 should expect to receive the distribution. Common shares of BNY acquired after April 6th, 2021 will not be entitled to the distribution.
Common shares of BSE or BFY 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 BSE and BFY 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. Prior to the reorganization, BNY will issue new Variable Rate Demand Preferred Shares (“VRDP Shares”) and redeem its existing Variable Rate Muni Term Preferred Shares. With the completion of the reorganization, holders of VRDP Shares of each 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.
Distribution details are as follows:
Declaration- 3/19/2021 Ex-Date- 4/7/2021 Record- 4/8/2021 |
Payable- 5/3/2021 | |
Fund |
Ticker |
Per-Share Distribution |
BlackRock New York Municipal Income Quality Trust |
BSE |
|
BlackRock New York Municipal Income Trust II |
BFY |
|
BlackRock New York Municipal Income Trust |
BNY |
|
This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the BlackRock funds, including BNY, the surviving Fund in the Reorganizations.
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Forward-Looking Statements
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BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to the Funds, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Funds or in the Funds’ net asset value; (2) the relative and absolute investment performance of the Funds and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Funds or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
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 special distribution for BSE, BFY, and BNY?
When is the ex-dividend date for BSE and BFY?
What will happen to BSE and BFY shares after April 9, 2021?
How will the reorganizations affect future distributions for shareholders?
