MFS High Income Municipal Trust and MFS High Yield Municipal Trust Announce Optional Partial Redemption of Preferred Shares

Rhea-AI Summary

MFS High Income Municipal Trust (NYSE: CXE) and MFS High Yield Municipal Trust (NYSE: CMU) announced an optional partial redemption of their Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051, set for November 28, 2022. CXE will redeem up to 110 of its 975 shares, while CMU will redeem up to 50 of its 750 shares, both at a price of $100,000 per share plus unpaid dividends. This move aims to reduce each fund's leverage from preferred shares, with all regulatory requirements fulfilled by MFS Investment Management.

Positive

• Reducing leverage attributed to preferred shares may improve financial stability.
• Redemption aligns with the funds' strategy for managing capital structure.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- MFS® High Income Municipal Trust (NYSE: CXE) and MFS® High Yield Municipal Trust (NYSE: CMU) announced today that each fund will complete an optional partial redemption of its Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051 ("Series 2051 RVMTP Shares") on November 28, 2022 (the “Redemption Date”).

On the Redemption Date, CXE will redeem up to 110 of the 975 Series 2051 RVMTP Shares at a redemption price equal to the liquidation preference of $100,000 per share plus unpaid dividends and other distributions accumulated from the original issue date to, but excluding, the Redemption Date. Additionally, on the Redemption Date, CMU will redeem up to 50 of the 750 Series 2051 RVMTP Shares at a redemption price equal to the liquidation preference of $100,000 per share plus unpaid dividends and other distributions accumulated from the original issue date to, but excluding, the Redemption Date. The redemption of a portion of each fund’s Series 2051 RVMTP Shares will reduce the amount of each fund's leverage attributable to preferred shares.

All regulatory requirements relating to the redemption of each fund’s Series 2051 RVMTP Shares have been satisfied by MFS Investment Management. The Tender and Paying Agent is The Bank of New York Mellon and its address is: 101 Barclay Street, Floor 7E, New York, New York 10286. Payment of the redemption price for each fund's Series 2051 RVMTP Shares will be sent to the holder by the Tender and Paying Agent on the Redemption Date.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within The Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking and can be identified by the use of words such as "may," "will," "expect," "anticipate," "estimate," "believe," "continue," or other similar words. Such forward-looking statements are based on the funds' current plans and expectations, are not guarantees of future results or performance, and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements are as of the date of this release only; the funds undertake no obligation to update or review any forward-looking statements. You are urged to carefully consider all such factors.

About the Funds

MFS® High Income Municipal Trust and MFS® High Yield Municipal Trust are closed-end investment company products advised by MFS Investment Management. Closed-end funds, unlike open-end funds, are not continuously offered. There is a one-time public offering and once issued, common shares of the funds are bought and sold in the open market through a stock exchange. Shares may trade at a discount to the net asset value per share. Shares of the funds are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the funds involve investment risk, including possible loss of principal.

About MFS Investment Management®

In 1924, MFS® launched the first US open-end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries and institutional clients, MFS still serves a single purpose: to create long term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of September 30, 2022, MFS had approximately US$508.7 billion in assets under management. Please visit mfs.com for more information.

MFS Investment Management
111 Huntington Ave., Boston, MA 02199

52918.1

View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005454/en/

Dan Flaherty, +1 617.954.4256

Source: MFS Investment Management

FAQ

What is the redemption date for CXE and CMU's preferred shares?

The redemption date for MFS High Income Municipal Trust (CXE) and MFS High Yield Municipal Trust (CMU) is November 28, 2022.

How many shares will CXE redeem?

CXE will redeem up to 110 of its 975 Series 2051 Remarketable Variable Rate MuniFund Term Preferred Shares.

How many shares will CMU redeem?

CMU will redeem up to 50 of its 750 Series 2051 Remarketable Variable Rate MuniFund Term Preferred Shares.

What will be the redemption price for the preferred shares?

The redemption price will be $100,000 per share plus unpaid dividends and other distributions.

Who is managing the redemption process?

The Tender and Paying Agent for the redemption is The Bank of New York Mellon.