BlackRock Announces Special Distributions Related to the Reorganization of Three Municipal Closed-End Funds

Rhea-AI Summary

BlackRock Advisors, LLC has declared special distributions for BlackRock MuniYield California Fund (MYC) and BlackRock MuniYield California Quality Fund (MCA) while announcing an early distribution for BlackRock MuniHoldings California Quality Fund (MUC) as part of their reorganization into the Combined Fund (MUC). The special distribution reflects undistributed net investment income as of the reorganization date, with a payment scheduled for May 2, 2022. The ex-dividend date is set for April 6, 2022, and the record date for shareholders is April 7, 2022.

Positive

• Special distributions will provide cash to shareholders of MYC and MCA, paid on May 2, 2022.
• MUC will declare its first monthly distribution on June 1, 2022, continuing income for shareholders.

Negative

• Common shares of MYC and MCA will cease trading as of April 8, 2022, potentially affecting liquidity.
• After the reorganization, shares acquired after April 5, 2022, will not be entitled to any distributions until MUC declares its first distribution.

NEW YORK--(BUSINESS WIRE)-- BlackRock Advisors, LLC today announced the declaration of a special distribution for BlackRock MuniYield California Fund, Inc. (NYSE: MYC) and BlackRock MuniYield California Quality Fund, Inc. (NYSE: MCA) and an early distribution for BlackRock MuniHoldings California Quality Fund, Inc. (NYSE: MUC and collectively with MYC and MCA, the “Funds,” and each, a “Fund”) in connection with the reorganizations of MYC and MCA into MUC, with MUC continuing (the “Combined Fund”) as the surviving Fund (the “Reorganizations”).

With respect to MYC and MCA, 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 MYC and MCA 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, MYC and MCA 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.

MYC and MCA are declaring a special distribution that will be payable on May 2, 2022. The ex-dividend date for the distribution is April 6, 2022 and the record date is April 7, 2022. Accordingly, persons who are holders of record of MYC or MCA common shares on April 7, 2022 should expect to receive the distribution. The distribution payable to shareholders of MYC or MCA will be paid in cash. Common shares of MYC or MCA acquired after April 5, 2022 will not be entitled to the distribution.

MUC is declaring early its monthly distribution that will be payable on May 2, 2022. The ex-dividend date for the distribution is April 6, 2022, and the record date is April 7, 2022. Accordingly, persons who are holders of record of MUC common shares on April 7, 2022 should expect to receive the distribution. Common shares of MUC acquired after April 5, 2022 will not be entitled to the distribution.

Common shares of MYC or MCA acquired after April 5, 2022 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 2, 2022 the Combined Fund will declare its first monthly distribution payable on June 1, 2022.

It is currently expected that the Reorganizations will be completed by the open of business on the New York Stock Exchange on April 11, 2022, subject to the satisfaction of customary closing conditions. To facilitate the Merger, all shares of MYC and MCA will cease trading on the NYSE as of market close on Friday, April 8, 2022. 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 of MCA and MYC with and into MUC, all of the Variable Rate Demand Preferred Shares of MCA and MYC will be refinanced into Variable Rate Muni Term Preferred Shares (“VMTP Shares”). Holders of the VMTP Shares of MCA and MYC would receive on a one-for-one basis, newly issued VMTP Shares of MUC in an amount equal to the aggregate VMTP Share liquidation preference (including any accumulated and unpaid dividends) held by holders of MCA and MYC VMTP Shares, as applicable, immediately prior to the Reorganizations.

Distribution details are as follows:

Declaration- 3/18/2022 Ex-Date- 4/6/2022 Record- 4/7/2022 Payable- 5/2/2022

Fund	Ticker	Per-Share Distribution
BlackRock MuniYield California Fund, Inc	MYC	$0.061300
BlackRock MuniYield California Quality Fund, Inc.	MCA	$0.056000
BlackRock MuniHoldings California Quality Fund, Inc	MUC	$0.055000

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.

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/corporate | Twitter: @blackrock | 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/20220318005374/en/

BlackRock Advisors, LLC, 1-800-882-0052

 

Source: BlackRock Closed-End Funds

FAQ

What is the special distribution declaration date for MYC and MCA?

The special distribution was declared on March 18, 2022.

When will the special distribution for MYC and MCA be payable?

The special distribution will be payable on May 2, 2022.

What is the ex-dividend date for MYC and MCA?

The ex-dividend date is April 6, 2022.

What will happen to MYC and MCA shares after April 8, 2022?

Shares of MYC and MCA will cease trading on the NYSE after market close on April 8, 2022.

What distributions can shareholders expect after the reorganization?

MUC expects to declare its first monthly distribution on June 1, 2022.