MFS Investment Grade Municipal Trust announces an Equity Buyback for 738,668 shares, representing 7.5% of its issued share capital.
April 03, 2018 at 12:00 am EDT
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MFS Investment Grade Municipal Trust (NYSE:CXH) announces a share repurchase program. Under the program, the company will repurchase up to 738,668 shares, representing 7.5% of its issued share capital. The shares will be repurchased at a price equal to 98% of the Net Asset Value (NAV) of the shares as of the close of ordinary trading on the New York Stock Exchange on or before the offer expires. The purpose of the offer is to to reduce the discount from NAV at which the shares currently trade. The buyback will be sourced out of cash in hand and/or proceeds of sales of securities in the fund’s investment portfolio. 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. The plan will be valid up to May 2, 2018. As on April 3, 2018, the company had 9,848,913 shares outstanding.
Computershare Trust Company, N.A. acted as depository, Georgeson LLC acted as information agent, Massachusetts Financial Services Company acted as investment advisor, David C. Sullivan from Ropes & Gray LLP acted as legal advisor to the company.
MFS Investment Grade Municipal Trust (the Fund) is a diversified closed-end management investment company. The Fundâs investment objective is to seek high current income exempt from federal income tax, but may also consider capital appreciation. The Fund invests, under normal market conditions, at least 80% of its net assets, including assets attributable to preferred shares and borrowings for investment purposes, in tax-exempt bonds and tax-exempt notes. The Fund may also invest in below-investment grade quality debt instruments. It invests in various sectors, such as healthcare, general obligations, universities, water and sewer utilities, toll roads, student loan, airports, and state and local appropriations. The fund offers a Dividend Reinvestment and Cash Purchase Plan that allows common shareholders to reinvest either all the distributions paid by the fund or only the long-term capital gains. The Fund's investment adviser is Massachusetts Financial Services Company.
MFS INVESTMENT GRADE MUNICIPAL TRUST 
