Form 4: Bank of America Corp Reports Redemption of Invesco Advantage Municipal Income Trust II Shares

Bank of America Corp reports the redemption of 324 Variable Rate Muni Term Preferred Shares held by its subsidiary, Banc of America Preferred Funding Corporation, from Invesco Advantage Municipal Income Trust II.

Summary

• Bank of America Corporation, through its subsidiary Banc of America Preferred Funding Corporation (PFC), disposed of 324 Variable Rate Muni Term Preferred Shares (VMTP Shares) of Invesco Advantage Municipal Income Trust II on May 31, 2024.
• The shares were redeemed by Invesco Advantage Municipal Income Trust II at a price of $100,373.72 per share, which includes a liquidation preference of $100,000.00 and final accumulated but unpaid dividends of $373.72.
• Following the transaction, Bank of America Corporation indirectly holds 1,836 VMTP Shares through its subsidiary PFC.
• Bank of America Corporation and PFC have jointly filed a statement and are analyzing additional trading activity, with plans to file another Form 4.
• The filing includes a joint filing agreement stating 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.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing a routine transaction. The sentiment is neutral as it primarily reports facts without expressing opinions or forecasts.

Positives

• The redemption of shares at a premium ($100,373.72 per share) suggests a favorable outcome for Banc of America Preferred Funding Corporation.

Future Outlook

Bank of America Corporation and PFC are analyzing additional trading activity and expect to file another Form 4 as promptly as reasonably practicable once that analysis is complete.

Industry Context

This filing reflects routine transactions related to beneficial ownership reporting requirements under Section 16 of the Securities Exchange Act. It indicates adjustments in holdings of preferred shares in a municipal income trust, which is common in the financial services industry.

Comparison to Industry Standards

• Form 4 filings are standard practice for reporting changes in beneficial ownership by corporate insiders and large shareholders, aligning with regulatory requirements.
• Redemption of preferred shares is a common capital management strategy employed by closed-end funds like Invesco Advantage Municipal Income Trust II.
• The redemption price reflects market conditions and the terms of the preferred shares, which typically include a liquidation preference and accrued dividends.

Stakeholder Impact

• Shareholders of Invesco Advantage Municipal Income Trust II may be affected by the redemption of preferred shares, potentially impacting the fund's capital structure and dividend payouts.
• The redemption provides liquidity to Banc of America Preferred Funding Corporation.

Next Steps

• Bank of America Corporation and PFC will file another Form 4 after analyzing additional trading activity.

Key Dates