MFS Municipal Closed-End Funds Announce Adjournment of Special Shareholder Meetings

Core Viewpoint - MFS Investment Management announced the adjournment of special shareholder meetings for several municipal closed-end funds to solicit additional shareholder votes on proposed reorganizations and management changes [1]. Group 1: Special Shareholder Meetings - The special meetings for MFS High Income Municipal Trust (CXE), MFS High Yield Municipal Trust (CMU), MFS Investment Grade Municipal Trust (CXH), and MFS Municipal Income Trust (MFM) were adjourned to April 2, 2026, at 11:00 a.m. Eastern Time [1]. - The adjournment aims to gather more shareholder votes on two key proposals: the approval of a reorganization agreement and the appointment of abrdn, Inc. as the new investment adviser for the Surviving Fund [1]. Group 2: Reorganizations - On December 10, 2025, the Board of Trustees of each Target Fund unanimously approved the reorganizations, determining they are in the best interests of shareholders [1]. - Shareholders of each Target Fund received a prospectus/proxy statement in early February 2026, detailing the reorganizations and the Board's considerations [1]. Group 3: Conditional Tender Offers - MFS authorized separate conditional cash tender offers for up to 50% of outstanding common shares of CMU and CXH at a price equal to 99% of their net asset values [1]. - The commencement of these tender offers is contingent upon receiving the necessary shareholder votes in favor of the reorganizations at the adjourned meetings [1]. Group 4: New Management and Governance - The Board of the Surviving Fund approved a new investment management agreement with Aberdeen to serve as the investment adviser following the reorganizations [1]. - Five new trustees were nominated to serve on the board of the Surviving Fund post-reorganization, along with a proposal to issue additional common shares [1].