MainStay Defined Term Municipal Opportunities Fund registers shares

By Toni Weeks

San Diego, June 27 - The MainStay Defined Term Municipal Opportunities Fund has registered shares in a 497 filing with the Securities and Exchange Commission.

The recently organized, diversified, closed-end management investment company registered 24.75 million shares with a public offering price of $20 per share for gross proceeds of $495 million. There is an over-allotment option for an additional 3,441,908 shares, or $68.24 million

The shares will trade on the New York Stock Exchange under the symbol "MMD."

The fund will have about a 12-year limited term. It will seek current income exempt from regular U.S. federal income taxes with total return as a secondary objective by investing, under normal conditions, at least 80% of its managed assets in municipal bonds.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC and Raymond James & Associates, Inc. are jointly leading a syndicate of underwriters that includes BB&T Capital Markets, J.J.B. Hilliard, W.L. Lyons, LLC, Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc., Maxim Group LLC, Wedbush Securities Inc. and Wunderlich Securities.

Settlement is expected Friday.

The sales load will be 4.5%. New York Life Investments, the fund's New York-based manager, will pay all organizational and operating expenses.

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