MFS Investment announces refinancing plan for six municipal funds

By Tali Rackner

Norfolk, Va., Feb. 10 – The MFS Municipal Income Trust, MFS Investment Grade Municipal Trust, MFS California Municipal Fund, MFS High Income Municipal Trust and MFS High Yield Municipal Trust announced that the board of trustees of each fund has approved a refinancing plan, according to a press release.

The plan is expected to result in the outstanding leverage remaining unchanged for each fund.

As part of the refinancing plan, each fund plans to redeem all of its currently outstanding variable-rate municipal term preferred shares, series 2016/9, which mature in September 2016.

In addition, each of MFS Municipal, MFS Investment Grade, MFS High Income and MFS High Yield trusts plan to redeem all of their currently outstanding auction rate municipal preferred shares.

The preferreds will be redeemed at their respective liquidation preferences per share plus additional amounts representing any dividend amounts owed, the release said.

Boston-based MFS Investment Management manages the funds.

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