Form 4: BofA Subsidiary Redeems MAV Preferred Shares

Bank of America's subsidiary, Banc of America Preferred Funding Corp, reported the redemption of 500 Variable Rate MuniFund Term Preferred Shares from Pioneer Municipal High Income Advantage Fund, Inc.

Summary

• Bank of America Corporation and its wholly-owned subsidiary, Banc of America Preferred Funding Corporation (BAPFC), filed a Form 4 reporting a change in beneficial ownership.
• BAPFC disposed of 500 Variable Rate MuniFund Term Preferred Shares, Series 2021 (VMTP Shares) of Pioneer Municipal High Income Advantage Fund, Inc. (MAV).
• The shares were redeemed by MAV on August 18, 2025, at a redemption price equal to their liquidation preference plus accumulated but unpaid dividends.
• Following this transaction, BAPFC's beneficial ownership of these specific VMTP Shares is 0.
• This redemption was previously described in a Notice of Intention to Redeem Securities (N-23C-2) filed by MAV with the SEC on July 17, 2025.
• Bank of America Corporation held an indirect interest in these securities through its indirect ownership of BAPFC.

Sentiment

Score: 5

Explanation: The filing reports a routine, previously announced redemption of preferred shares, which is a neutral capital event for both the holder (Bank of America subsidiary) and the issuer (Pioneer Municipal High Income Advantage Fund, Inc.). It reflects a planned capital structure adjustment rather than unexpected news.

Positives

• The redemption of preferred shares at liquidation preference and accumulated dividends represents a return of capital for Banc of America Preferred Funding Corporation.
• For Pioneer Municipal High Income Advantage Fund, Inc., the redemption reduces its outstanding preferred stock liabilities and associated dividend obligations.

Future Outlook

The filing does not contain forward-looking statements or guidance beyond the reported transaction.

Management Comments

• Each reporting person declares that neither the filing of this statement nor anything herein shall be construed as an admission that such person is, for the purposes of Section 13(d) of the US Securities Exchange Act of 1934 or any other purpose, (i) acting (or has agreed or is agreeing to act together with any other person) as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Issuer or otherwise with respect to the Issuer or any securities of the Issuer or (ii) a member of any group with respect to the Issuer or any securities of the Issuer.

Industry Context

The redemption of preferred shares is a standard capital management activity for closed-end funds like Pioneer Municipal High Income Advantage Fund, Inc., often undertaken to optimize capital structure or reduce financing costs.

Related Party Transactions

• The transaction involves Banc of America Preferred Funding Corporation, a wholly-owned subsidiary of Bank of America Corporation, disposing of shares issued by Pioneer Municipal High Income Advantage Fund, Inc., where Bank of America Corporation is identified as a 10% owner.

Stakeholder Impact

• Shareholders of Pioneer Municipal High Income Advantage Fund, Inc. may see a slight change in the fund's capital structure due to the reduction of preferred stock liabilities.
• Bank of America Corporation, as the ultimate parent of the reporting entity, receives a return of capital from its investment in the preferred shares.

Key Dates

Keywords

SEC Form 4, Beneficial Ownership, Preferred Shares, Redemption, Bank of America, Pioneer Municipal High Income Advantage Fund, MAV, VMTP Shares, Capital Management, Closed-End Fund