Four BlackRock funds call $41.38 million of auction-rate preferreds

By Marisa Wong

Madison, Wis., July 11 - BlackRock Advisors, LLC announced that BlackRock California Municipal 2018 Term Trust, BlackRock Municipal 2020 Term Trust, BlackRock New York Municipal 2018 Term Trust and BlackRock Municipal 2018 Term Trust each issued a notice of redemption for a portion of its respective outstanding auction-rate preferred shares.

Specifically, BlackRock California Municipal 2018 Term Trust will redeem 56 series M-7 auction-rate preferreds on Aug. 6. The amount to be redeemed, $1.4 million, represents 3.4% of the trust's outstanding auction-rate preferreds.

BlackRock Municipal 2020 Term Trust will redeem preferreds from three series: 413 series F-7 preferreds, totaling $10,325,000, on Aug. 5; 413 series M-7 preferreds, totaling $10,325,000, on Aug. 6; and 413 series W-7 preferreds, totaling $10,325,000, on Aug. 1. The called amount represents 20% of the trust's outstanding auction-rate preferreds.

BlackRock New York Municipal 2018 Term Trust will redeem 136 series T-7 auction-rate preferreds on July 31. The redemption amount of $3.4 million represents 13.2% of the trust's outstanding auction-rate preferreds.

BlackRock Municipal 2018 Term Trust will redeem preferreds from two series: 112 series W-7 auction-rate preferreds, totaling $2.8 million, and 112 series R-7 auction-rate preferreds, totaling $2.8 million. The W-7 preferreds will be redeemed on Aug. 1, and the R-7 preferreds will be redeemed on Aug. 2. The amount to be redeemed represents 6.5% of the trust's outstanding auction-rate preferreds.

The redemptions, which total $41,375,000, will be conducted at a liquidation preference of $25,000 per share, together with accrued dividends to the redemption date, according to a press release.

When taken together with previously announced redemptions of auction-rate preferreds by BlackRock closed-end funds, these redemptions total about $9.54 billion across BlackRock taxable and tax-exempt closed-end funds, or 97.1% of the total auction-rate preferreds outstanding as of February 2008, the release said.

BlackRock Advisors is an investment management firm based in New York.

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