MFS High Yield Municipal Trust Commences Tender Offer To Purchase Up To 10% Of The Fund's Outstanding Common Shares At A Price Per Share Equal To 98% Of The Fund's Net Asset Value
Portfolio Pulse from Benzinga Newsdesk
MFS High Yield Municipal Trust (NYSE:CMU) has commenced a cash tender offer for up to 10% of its outstanding common shares at a price equal to 98% of the fund's net asset value per share. The offer will expire at 5:00 P.M., Eastern Standard Time on November 6, 2023, unless extended. If the number of shares tendered exceeds the maximum amount of the offer, the Fund will purchase shares from tendering shareholders on a pro rata basis.
October 06, 2023 | 8:21 pm
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MFS High Yield Municipal Trust's tender offer could potentially lead to a short-term increase in demand for its shares, as investors may be enticed by the opportunity to sell their shares at a price close to the net asset value.
Tender offers often lead to a short-term increase in the stock's price as they usually offer a premium to the current market price. In this case, the offer is at 98% of the net asset value, which could be attractive to investors. This could increase demand for the shares in the short term, potentially leading to a price increase.
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