Term trusts are closed-end funds that seek to return a fixed amount to shareholders on a fixed date and then terminate.
NEW YORK -- On January 2, 2013, each of BlackRock Municipal 2018 Term Trust (NYSE: BPK), BlackRock California Municipal 2018 Term Trust (NYSE: BJZ), BlackRock New York Municipal 2018 Term Trust (NYSE: BLH), BlackRock Municipal 2020 Term Trust (NYSE: BKK) and BlackRock Florida Municipal 2020 Term Trust (NYSE: BFO),the five BlackRock closed-end term trusts with auction rate preferred shares ("ARPS") outstanding (the "Term Trusts"), announced partial redemptions of their respective ARPS.
Term Trusts are a unique sub-set of closed-end funds which have (i) a defined maturity date at which time the Term Trust will liquidate and distribute proceeds to investors and (ii) an investment objective to seek to (a) provide current income exempt from regular Federal income tax (and state income tax, as applicable) and (b) return the Term Trust's initial public offering price to common shareholders on or about the Term Trust's stated maturity date.
BlackRock has successfully met the primary investment objective, of returning a trust's initial offering price, on all six of its term trusts that have reached maturity.
and the Board of Directors of The BlackRock Advantage Term Trust, Inc.
As BlackRock's
term trusts approach their maturity dates, cash flows into the portfolios are reinvested in shorter maturity securities, which closely match the trust's maturity date.
Since 1988, BlackRock has successfully managed four term trusts to maturity.
BlackRock has three remaining taxable and nine tax-exempt term trusts with maturities from 2006 to 2018 and believes that all of these funds are currently on schedule to return their original offering price.
BlackRock, BNN's investment advisor, invented
term trusts in 1988 to provide investors in fixed-income securities a way to receive strong dividends while having a specified date for retrieving their principal.
With the withdrawal of these proposals, each of the municipal
term trusts will retain its initial investment objectives and guidelines.
The Boards of Directors of ten BlackRock municipal closed-end trusts approved four separate tax-free transactions, each involving the combination of one or more BlackRock municipal
term trusts with and into a corresponding BlackRock perpetual closed-end trust.
and the Board of Directors of The BlackRock Investment Quality
Term Trust, Inc.
