BlackRock Announces Closing of Reorganizations of Three Municipal Closed-End Funds

Rhea-AI Summary

BlackRock Advisors announced the reorganizations of the BlackRock MuniYield California Funds (MYC and MCA) into the BlackRock MuniHoldings California Quality Fund (MUC), effective April 11, 2022. This involves common shareholders of MYC and MCA receiving MUC shares equivalent to the net asset value of their former shares. Preferred shareholders of MYC and MCA will receive MUC preferred shares on a one-for-one basis. The net asset values per share as of April 8, 2022, were $13.9507 for MYC and $13.9061 for MCA. Cash will be distributed for fractional shares not issued in the reorganizations.

Positive

• Successful reorganization of funds may streamline operations and improve efficiencies.
• Shareholders of MYC and MCA receive shares in MUC that reflect the net asset value of their investments.

Negative

• Investors may be concerned about potential changes in investment strategies or objectives following the reorganization.

NEW YORK--(BUSINESS WIRE)-- BlackRock Advisors, LLC today announced the reorganizations of each of BlackRock MuniYield California Fund, Inc. (NYSE: MYC) and BlackRock MuniYield California Quality Fund, Inc. (NYSE: MCA) with and into BlackRock MuniHoldings California Quality Fund, Inc. (NYSE: MUC and collectively with MYC and MCA, the “Funds,” and each, a “Fund”) is effective as of the opening for business of the New York Stock Exchange on Monday, April 11, 2022.

In the Reorganizations, common shareholders of MYC and MCA received an amount of MUC common shares equal to the aggregate net asset value of their holdings of MYC and MCA common shares as determined at the close of business on April 8, 2022. Fractional shares of MUC common shares were not issued in the Reorganizations and consequently cash will be distributed for any such fractional shares.

Relevant details pertaining to the Reorganizations are as follows:

Fund	Ticker	Net Asset Value/Share ($)	Share Conversion Ratio
BlackRock MuniHoldings California Quality Fund, Inc	MUC	13.7601	-
BlackRock MuniYield California Fund, Inc	MYC	13.9507	1.01385164
BlackRock MuniYield California Quality Fund, Inc.	MCA	13.9061	1.01061039

In addition, MYC and MCA preferred shareholders received on a one-for-one basis MUC preferred shares in an amount equal to the aggregate preferred share liquidation preference held by MYC and MCA preferred shareholders immediately prior to the Reorganizations.

This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the BlackRock funds, including MUC, the surviving fund in the Reorganizations. Investors should consider MUC’s investment objective, risks, charges and expenses carefully and consider in its entirety the Joint Proxy Statement/Prospectus relating to the Reorganizations, which contains important information regarding the investment objectives and policies, risks, charges, expenses and other important information about MUC.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com | Twitter: @blackrock | Blog: www.blackrockblog.com | LinkedIn: www.linkedin.com/company/blackrock

Availability of Fund Updates

BlackRock will update performance and certain other data for the BlackRock closed-end funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.

Forward-Looking Statements

This press release, and other statements that BlackRock or the Funds may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Funds’ or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220411005247/en/

BlackRock Closed-End Funds

1-800-882-0052

Source: BlackRock Closed-End Funds

FAQ

What is the significance of the reorganization of MYC and MCA into MUC?

The reorganization merges MYC and MCA into MUC, potentially simplifying the investment structure and allowing for better resource allocation.

When did the reorganization of MYC and MCA into MUC take effect?

The reorganization became effective on April 11, 2022.

What was the net asset value per share for MYC and MCA before the reorganization?

As of April 8, 2022, the net asset value per share was $13.9507 for MYC and $13.9061 for MCA.

How are shareholders affected by the reorganization?

Common shareholders of MYC and MCA receive an equivalent amount of MUC shares based on the net asset value of their previous holdings.