Form 4: Bank of America Corp Disposes of BlackRock MuniHoldings Shares in Automatic Tender

Bank of America Corporation and its subsidiary, Banc of America Preferred Funding Corporation, disposed of 2,436 variable rate demand preferred shares of BlackRock MuniHoldings New York Quality Fund, Inc. due to an automatic tender.

Summary

• Bank of America Corporation, along with its subsidiary Banc of America Preferred Funding Corporation, has reported the disposal of 2,436 variable rate demand preferred shares (VRDP Shares) of BlackRock MuniHoldings New York Quality Fund, Inc.
• The disposal occurred on November 7, 2024, as a result of an automatic tender of the VRDP Shares.
• The shares were tendered at a price of $100,000 per share.
• Banc of America Preferred Funding Corporation, a wholly-owned subsidiary of Bank of America Corporation, was the direct beneficial owner of the disposed shares.
• Both Bank of America Corporation and Banc of America Preferred Funding Corporation are jointly filing this statement.
• The reporting parties are analyzing additional trading activity and expect to file another Form 4 soon.

Sentiment

Score: 5

Explanation: The document is a routine SEC filing related to a pre-defined event (automatic tender). There is no indication of positive or negative sentiment, it is a neutral transaction.

Risks

• The document indicates that further analysis of trading activity is underway, which could lead to additional disposals or acquisitions of shares.

Future Outlook

The reporting persons are currently analyzing additional trading activity and expect to file another Form 4 as promptly as reasonably practicable once that analysis is complete.

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

This filing reflects a transaction in the municipal bond market, where variable rate demand preferred shares are a common instrument. The automatic tender suggests a structured event within the fund's operations.

Comparison to Industry Standards

• The automatic tender of preferred shares at a fixed price is a standard mechanism for certain types of closed-end funds, such as BlackRock MuniHoldings New York Quality Fund, Inc.
• Similar transactions can be seen in other municipal bond funds managed by companies like Nuveen, Eaton Vance, and Franklin Templeton, where preferred shares are often used as a form of leverage.
• The price of $100,000 per share is typical for these types of tenders, as they are often issued at a par value of $100,000.

Stakeholder Impact

• The automatic tender may impact the fund's capital structure and leverage.
• Shareholders may see changes in the fund's net asset value due to the tender.

Next Steps

• Bank of America and its subsidiary will continue to analyze trading activity.
• Another Form 4 is expected to be filed soon.

Key Dates

Keywords

Bank of America, BlackRock MuniHoldings, Variable Rate Demand Preferred Shares, Automatic Tender, Share Disposal, SEC Form 4, Banc of America Preferred Funding Corporation