Certain BlackRock Funds (BGY, BSTZ, MVF) Announce Expiration and Preliminary Results of Tender Offers

BlackRock announced the preliminary results of tender offers for three of its closed-end funds: BlackRock Enhanced International Dividend Trust (BGY), BlackRock Science and Technology Term Trust (BSTZ), and BlackRock MuniVest Fund, Inc. (MVF). Each fund offered to repurchase up to 2.5% of its outstanding shares, and the tender offers, which expired on May 20, 2025, were oversubscribed, meaning shares will be purchased on a pro-rated basis at 98% of the fund's net asset value as of May 21, 2025.

Analysis

BlackRock has announced the preliminary results for tender offers concerning three of its closed-end funds: BlackRock Enhanced International Dividend Trust (BGY), BlackRock Science and Technology Term Trust (BSTZ), and BlackRock MuniVest Fund, Inc. (MVF). Each fund offered to repurchase up to 2.5% of its outstanding common shares, with the offers expiring on May 20, 2025. Notably, all three tender offers were significantly oversubscribed, indicating strong shareholder interest in utilizing this liquidity event. For BGY, approximately 22.9 million shares were tendered against an offer for 2.3 million; for BSTZ, 12.7 million shares were tendered against an offer for 1.8 million; and for MVF, nearly 21.0 million shares were tendered against an offer for 1.5 million. Consequently, the shares accepted for purchase will be subject to pro-ration. The repurchase price is set at 98% of each fund's net asset value (NAV) as of May 21, 2025. This high level of oversubscription, despite the offer being for a small percentage of shares and at a 2% discount to NAV, suggests that a considerable number of shareholders found the terms attractive, potentially seeking liquidity or viewing the offer price favorably compared to prevailing market prices or their individual investment outlooks for these specific funds. Final pro-ration factors are expected to be announced shortly.

Key Decisions for Investors

• Shareholders who tendered shares in BGY, BSTZ, or MVF should anticipate that only a small fraction of their tendered shares will be accepted for repurchase due to the significant oversubscription and subsequent pro-ration.
• The substantial oversubscription across these three funds at 98% of NAV, despite the limited 2.5% offer size, may indicate underlying shareholder demand for liquidity or a perception that this price offered a favorable exit opportunity relative to open market conditions or individual outlooks.
• Investors should monitor the announcement of final pro-ration factors and observe the post-tender trading characteristics, particularly the discount or premium to NAV, for these funds to assess any shifts in market sentiment or valuation following this capital return.