Three BlackRock municipal trusts to redeem auction-rate preferreds

By Toni Weeks

San Luis Obispo, Calif., Nov. 7 - BlackRock Advisors, LLC announced that three of its municipal term trusts plan to redeem a portion of their auction-rate preferred shares.

The redemptions will be conducted at a liquidation preference of $25,000 per share plus accrued dividends, if applicable, according to a press release.

The BlackRock Municipal 2020 Term Trust will redeem 132 W-7 preferreds on Nov. 29, 132 F-7 preferreds on Dec. 2 and 132 M-7 preferreds on Dec. 3 for a total redemption of $9.9 million. The amount represents 9% of the trust's auction-rate preferreds currently outstanding.

The BlackRock Municipal 2018 Term Trust will redeem 80 preferreds, consisting of 40 R-7 preferreds and 40 W-7 preferreds, on Nov. 29 for a total redemption of $2 million. This amount is 2.8% of the trust's auction-rate preferreds currently outstanding.

Finally, the BlackRock Florida Municipal 2020 Term Trust will redeem 110 F-7 preferreds on Dec. 2, for a total redemption amount of $2.75 million, or 36.7% of the trust's auction-rate preferreds currently outstanding.

Including previous redemptions of auction-rate preferreds by BlackRock closed-end funds, these redemptions bring the total amount redeemed across the company's taxable and tax-exempt closed-end funds since February 2008 to roughly $9.6 billion.

BlackRock is an investment management firm based in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.