SCHEDULE: Bank of America Reduces Invesco Preferred Share Holdings

Bank of America Corporation and its affiliate reduced their beneficial ownership in Invesco Advantage Municipal Income Trust II's preferred shares following a redemption.

Summary

• This is Amendment No. 5 to the Schedule 13D filing by Bank of America Corporation (BAC) and Banc of America Preferred Funding Corporation (BAPFC), collectively referred to as the Reporting Persons.
• The amendment reports two key events: the execution of an Amendment to the Variable Rate Muni Term Preferred Shares Purchase Agreement, dated September 5, 2025, and a change in ownership due to a share redemption.
• On September 4, 2025, Invesco Advantage Municipal Income Trust II (the Issuer) redeemed 367 Series 2015/6-VKI Variable Rate Muni Term Preferred Shares (VMTP Shares) held by BAPFC.
• The redemption price was the liquidation preference plus accumulated but unpaid dividends.
• Following this redemption, the Reporting Persons now beneficially own 1,469 VMTP Shares, representing 100.0% of the class.

Sentiment

Score: 6

Explanation: The filing reports a routine transaction (share redemption) and an amendment to an agreement, which are neutral to slightly positive events for the holder as capital is returned as expected. No negative surprises or significant positive developments are disclosed.

Positives

• The redemption of 367 VMTP Shares at liquidation preference plus accumulated dividends indicates a return of capital to the Reporting Persons as expected for preferred shares.

Future Outlook

The filing indicates an amendment to the Variable Rate Muni Term Preferred Shares Purchase Agreement was executed on September 5, 2025, suggesting ongoing or revised terms for the remaining preferred shares, though specific future implications are not detailed.

Industry Context

This filing reflects a specific transaction involving a financial institution's holdings in a municipal income trust's preferred shares. Such redemptions are routine for preferred stock and do not necessarily indicate broader industry trends, though they can be part of a larger portfolio rebalancing strategy by large financial entities like Bank of America.

Comparison to Industry Standards

• The redemption of preferred shares at liquidation preference plus accumulated dividends is a standard and expected outcome for such securities. There are no specific comparable companies or projects mentioned in the filing to benchmark against, as this is a specific ownership disclosure rather than a performance report.

Stakeholder Impact

• Shareholders of Invesco Advantage Municipal Income Trust II: The redemption of preferred shares reduces the outstanding preferred equity, which could potentially improve the trust's capital structure or reduce preferred dividend obligations, indirectly benefiting common shareholders. However, the filing does not provide enough detail to assess the full impact.
• Bank of America Corporation (as a holder): The redemption returns capital to Bank of America, which can then be redeployed elsewhere. The amendment to the purchase agreement suggests continued engagement with the remaining preferred shares.

Next Steps

• The terms of the amended Variable Rate Muni Term Preferred Shares Purchase Agreement, executed on September 5, 2025, will govern the remaining VMTP Shares.

Key Dates

Recommendation

This filing details a routine redemption of preferred shares and an amendment to a purchase agreement, which are expected events for preferred stock. It does not contain information that would significantly alter the investment thesis for either Invesco Advantage Municipal Income Trust II or Bank of America Corporation, thus a 'hold' recommendation is appropriate as there are no new catalysts for a 'buy' or 'sell' decision based solely on this filing.

Keywords

Invesco Advantage Municipal Income Trust II, Bank of America Corporation, Banc of America Preferred Funding Corp, Schedule 13D, VMTP Shares, Preferred Shares, Share Redemption, Municipal Income Trust, Variable Rate