NYLI MacKay DefinedTerm Muni Opportunities Fund Announces Preliminary Results of Tender Offer

Rhea-AI Summary

NYLI MacKay DefinedTerm Muni Opportunities Fund (NYSE: MMD) has announced preliminary results of its tender offer, which expired on November 14, 2024. Shareholders were allowed to offer up to 100% of their shares for repurchase at 100% of NAV. Preliminary data shows 9,080,459 common shares were tendered, representing approximately 32.5% of outstanding shares. The tender offer completion requires the Fund's net assets to remain above $200 million after the transaction. If this condition is not met, the tender offer will be cancelled and the Fund will dissolve on December 31, 2024. Final results are expected around November 18, 2024.

Positive

• High shareholder participation with 32.5% of shares tendered, indicating strong liquidity event for investors
• Tender offer at 100% of NAV provides fair exit opportunity for shareholders

Negative

• Risk of fund dissolution if net assets fall below $200 million threshold
• Participating shareholders will miss November and December 2024 monthly distributions
• Potential reduction in fund's asset base by 32.5% could affect future operations

Insights

Financial Analyst

This tender offer announcement reveals significant shareholder interest with 32.5% of outstanding shares tendered, signaling substantial investor desire for liquidity. The conditional nature of the tender offer, requiring minimum net assets of $200 million, adds complexity to the transaction. The high participation rate could impact the fund's future operations and trading dynamics.

Key implications include potential changes in fund liquidity, trading patterns and NAV dynamics. The possibility of fund dissolution by December 31, 2024, if conditions aren't met, presents a critical decision point for remaining shareholders. The exclusion of November and December 2024 distributions for tendered shares affects short-term income considerations for participating investors.

NEW YORK--(BUSINESS WIRE)-- NYLI MacKay DefinedTerm Muni Opportunities Fund (the “Fund”) (NYSE: MMD) today announced the preliminary results of a tender offer.

As previously announced, the Fund conducted a tender offer allowing shareholders to offer up to 100% of their shares for repurchase for cash at a price per share equal to 100% of the net asset value per share determined on the date the tender offer expires. The tender offer expired on November 14, 2024, at 5:00 p.m. Eastern time.

Based on preliminary information, 9,080,459 common shares were tendered, representing approximately 32.5% of the Fund’s common shares outstanding. These figures do not include shares tendered through notice of guaranteed delivery.

The completion of the Fund’s tender offer is subject to certain conditions, including that the aggregate net assets of the Fund must equal or exceed $200 million as of the expiration date of the tender offer, taking into account the amounts that would be paid to shareholders who have properly tendered their shares. If the Fund’s net assets after the tender offer would be less than $200 million, the tender offer shall be cancelled, no common shares will be repurchased and the Fund will dissolve on December 31, 2024.

The Fund currently anticipates the satisfaction of all tender offer conditions and a successful completion of the tender offer and expects to announce the final results of the tender offer on or about November 18, 2024.

Shareholders participating in the tender offer will not receive the November or December 2024 monthly distributions on tendered shares.

The Fund’s daily New York Stock Exchange closing prices, net asset values per share, as well as other information are available by clicking here or by calling the Fund’s shareholder servicing agent at (855) 456-9683.

For more insights from MacKay Municipal Managers™ and our New York Life Investments affiliates click here.

There are risks inherent in any investment, including market risk, interest rate risk, credit risk and the possible loss of principal. There can be no assurance that the Fund’s investment objectives will be achieved. Shares of closed-end funds frequently trade at a discount from their net asset value, which may increase investor risk.

Past performance is no guarantee of future results, which will vary.

About New York Life Investments

With over $750 billion in assets under management as of September 30, 2024, New York Life Investments, a Pensions & Investments’ Top 30 Largest Money Manager¹, is comprised of the affiliated global asset management businesses of its parent company, New York Life Insurance Company, and offers clients access to specialized, independent investment teams through its family of affiliated boutiques. New York Life Investments remains committed to clients through a combination of the diverse perspectives of its boutiques and a long-lasting focus on sustainable relationships.

About MacKay Municipal Managers™

MacKay Municipal Managers^TM is a recognized leader in active municipal bond investing and is entrusted with $82 billion in assets under management, as of 9/30/24. The team manages a suite of highly rated municipal bond solutions available in multiple vehicles. MacKay Municipal Managers^TM is a fundamental relative-value bond manager that combines a top-down approach with bottom-up, credit research. Our investment philosophy is centered on the belief that strong long-term performance can be achieved with a relative value, research driven approach in a highly fragmented, inefficient municipal bond market.

About MacKay Shields LLC

MacKay Shields LLC (together with its subsidiaries, "MacKay")², a New York Life Investments company, is a global asset management firm with $151 billion in assets under management³ as of September 30, 2024. MacKay manages fixed income strategies for high-net worth individuals and institutional clients through separately managed accounts and collective investment vehicles including private funds, collective investment trusts, UCITS, ETFs, closed end funds and mutual funds. MacKay provides investors with specialty fixed income expertise across global fixed income markets including municipal bonds, high yield bonds, investment grade bonds, structured credit, and emerging markets debt. The MacKay Shields client experience provides investors direct access to senior investment professionals. MacKay maintains offices in New York City, Princeton, Los Angeles, London and Dublin. For more information, please visit www.mackayshields.com or follow us on Twitter or LinkedIn.

¹ New York Life Investment Management ranked 26th largest institutional investment manager in Pensions & Investments' Largest Money Managers 2024 published June 2024, based on worldwide institutional AUM as of 12/31/23. No direct or indirect compensation was paid for the creation and distribution of this ranking.

² MacKay Shields is a wholly owned subsidiary of New York Life Investment Management Holdings LLC, which is wholly owned by New York Life Insurance Company.

³ Assets under management (AUM) as of September 30, 2024 represents assets managed by MacKay Shields LLC and its subsidiaries but excludes certain accounts and other assets over which MacKay Shields continues to exercise discretionary authority to liquidate but which are no longer actively managed.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241115708711/en/

Media:

Sara Guenoun | New York Life | (212) 576-4757 | Sara_j_Guenoun@newyorklife.com



Investors:

855-456-9683

Source: New York Life Investments

FAQ

What percentage of shares were tendered in MMD's tender offer?

According to preliminary results, 9,080,459 common shares were tendered, representing approximately 32.5% of the Fund's common shares outstanding.

What happens if MMD's net assets fall below $200 million after the tender offer?

If the Fund's net assets fall below $200 million after the tender offer, the tender offer will be cancelled and the Fund will dissolve on December 31, 2024.

When will MMD announce the final results of the tender offer?

The Fund expects to announce the final results of the tender offer on or about November 18, 2024.

Will shareholders participating in MMD's tender offer receive November and December 2024 distributions?

No, shareholders participating in the tender offer will not receive the November or December 2024 monthly distributions on tendered shares.