BlackRock MuniAssets Fund Launches Rights Offering to Tap High-Yield Muni Opportunities
MUA is trading near its 52-week low of $10.02 (7.8% above the low).
Summary
The fund announced a transferable rights offering for existing shareholders as of July 28, with three rights needed to buy one new share at a subscription price set at 95% of the average market price over five days, floored at 90% of NAV. The offering aims to raise capital for high-yield municipal bonds, particularly affordable housing projects, where the adviser sees tax-equivalent yields near 10%. The fund expects to maintain its current distribution level after the offer, and the adviser will cover all offering expenses. The subscription price will be determined on the August 20 expiration date, with an over-subscription privilege for record date shareholders who fully exercise their rights. The dilutive impact depends on the final subscription price and participation rate, but the expense coverage and distribution maintenance are shareholder-friendly features.
At the time of this announcement, MUA was trading at $10.80 on NYSE in the Finance sector, with a market capitalization of approximately $544.8M. The 52-week trading range was $10.02 to $11.79. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.