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Published on 8/9/2012 in the Prospect News Liability Management Daily, Prospect News Municipals Daily and Prospect News Preferred Stock Daily.

MFS funds begin tendering for auction-rate preferreds at 95% of par

By Susanna Moon

Chicago, Aug. 9 - MFS Municipal Income Trust, MFS Investment Grade Municipal Trust, MFS California Municipal Fund, MFS High Income Municipal Trust and MFS High Yield Municipal Trust will began tender offers for their outstanding auction-rate preferred shares.

Each fund is tendering for the auction-rate preferreds at 95% of the liquidation preference of $25,000 per share, or $23,750 per share, plus accrued dividends through the expiration date of the tender offer, according to a press release by Boston-based MFS Investment Management.

As previously noted, each tender offer will be conditioned on the receipt of tenders for at least 70% of its outstanding auction-rate preferreds, the private placement of new preferred shares and the approval by holders of an amendment to each fund's bylaws to replace Standard & Poor's with Fitch as a rating agency for the preferreds.

The funds announced the tender offers for the auction-rate preferreds on July 6 after receiving approval of the board of trustees of each fund for the offer.

Questions about the tender offers can be directed either to Warren Antler at AST Fund Solutions, the information agent for the tender offers, at 212 400-2605, or Justin Miller of MFS at 800 343-2829, ext. 57702.


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