Invesco Advisers, Inc. Announces Expiration of Tender Offers for Invesco Trust for Investment Grade New York Municipals and Invesco Pennsylvania Value Municipal Income Trust

Rhea-AI Summary

Invesco Advisers announced the expiration of tender offers for two municipal funds: Invesco Trust for Investment Grade New York Municipals (VTN) and Invesco Pennsylvania Value Municipal Income Trust (VPV). For VTN, approximately 6,818,415 shares (35%) were tendered against an offer for 4,869,438 shares (25%). For VPV, about 8,073,690 shares (33.9%) were tendered against an offer for 5,957,386 shares (25%). Due to oversubscription, shares will be purchased on a prorated basis.

Both funds will make cash payments at 99% of their net asset value as of December 10, 2024, with payments expected within seven business days after the December 9 expiration date.

Positive

• High shareholder participation with both funds receiving more shares than offered (35% and 33.9% vs 25% target)
• Tender offers provide shareholders with liquidity at a minimal discount (99% of NAV)

Negative

• Prorated share acceptance due to oversubscription means shareholders cannot fully exit their positions
• 1% discount to NAV represents a cost to tendering shareholders

Insights

Financial Analyst

The tender offers from Invesco for VTN and VPV demonstrate strong shareholder interest, with both funds seeing tender requests significantly exceeding their 25% share repurchase targets. VTN received tenders for 35% of outstanding shares while VPV saw 33.9%, indicating substantial investor appetite for liquidity at a slight discount to NAV.

The 99% of NAV purchase price represents an attractive exit opportunity for shareholders, particularly given the typical trading discounts in closed-end municipal bond funds. The prorated nature of the tender means investors will receive partial fills, but this still provides meaningful liquidity in these relatively illiquid securities. For Invesco (IVZ), these tender offers help address trading discounts while potentially improving the funds' trading dynamics going forward.

Market Research Analyst

The oversubscribed tender offers highlight ongoing challenges in the municipal bond closed-end fund space, where persistent discounts to NAV have frustrated shareholders. The strong participation rates - exceeding targets by roughly 40% for VTN and 35% for VPV - reflect investor desire to reduce exposure to these vehicles, possibly due to rising interest rates and tax-loss harvesting considerations.

This transaction could influence broader closed-end fund market dynamics, as other fund sponsors may face pressure to conduct similar tender offers to address trading discounts. For Invesco's asset management business, while the tender reduces assets under management, it demonstrates responsiveness to shareholder concerns about structural inefficiencies in the closed-end fund format.

ATLANTA, Dec. 10, 2024 /PRNewswire/ -- Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today the preliminary results of the previously announced tender offers for Invesco Trust for Investment Grade New York Municipals (NYSE: VTN) and Invesco Pennsylvania Value Municipal Income Trust (NYSE: VPV) (each, a "Fund" and collectively, the "Funds"). Each tender offer expired at 11:59 p.m., New York City time, on Monday, December 9, 2024 (the "Expiration Date").

Invesco Trust for Investment Grade New York Municipals conducted a tender offer for cash of up to 4,869,438 of the Fund's outstanding common shares of beneficial interest ("Common Shares"), representing twenty five percent of its Common Shares.  Based on current information, approximately 6,818,415 Common Shares, or approximately 35% of the Fund's Common Shares outstanding, were tendered through the Expiration Date. Because the number of shares redeemed exceeded 4,869,438 shares, the relative number of shares that will be purchased from each shareholder will be prorated based on the number of Common Shares properly tendered.

Invesco Pennsylvania Value Municipal Income Trust conducted a tender offer for cash of up to 5,957,386 of the Fund's Common Shares, representing twenty five percent of its Common Shares. Based on current information, approximately 8,073,690 Common Shares, or approximately 33.9% of the Fund's Common Shares outstanding, were tendered through the Expiration Date.  Because the number of shares exceeded 5,957,386 shares, the relative number of Common Shares that will be purchased from each shareholder will be prorated based on the number of Common Shares properly tendered.

The final number of each Fund's Common Shares validly tendered and accepted pursuant to each Fund's tender offer will be announced at a later date. Each Fund expects to make cash payments for tendered and accepted Common Shares at a price equal to 99% of such Fund's net asset value as of the close of regular trading on the New York Stock Exchange on Friday, December 10, 2024. Payment for Common Shares tendered and accepted is expected to be sent to tendering shareholders within approximately seven business days after the Expiration Date.

For investor inquiries, call 1-800-341-2929.

For media relations inquiries contact mediarelations@invesco.com 

This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the Invesco Funds, including either Fund.

About Invesco Ltd.
Invesco Ltd. Is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.8 trillion in assets on behalf of clients worldwide as of September 30, 2024. For more information, visit www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned, indirect subsidiary of Invesco Ltd.

Note: There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.

NOT A DEPOSIT  |  NOT FDIC INSURED  l  MAY LOSE VALUE  l  NO BANK GUARANTEE  |  NOT IN INSURED BY ANY FEDERAL GOVERNMENT AGENCY

 

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SOURCE Invesco Ltd.

FAQ

What was the tender offer size for Invesco Trust for Investment Grade New York Municipals (VTN)?

The tender offer was for up to 4,869,438 shares, representing 25% of VTN's outstanding common shares.

How many shares were tendered in the Invesco Pennsylvania Value Municipal Income Trust (VPV) offer?

Approximately 8,073,690 shares, or 33.9% of VPV's outstanding common shares, were tendered.

What is the purchase price for the tendered shares in both Invesco funds?

The shares will be purchased at 99% of each fund's net asset value as of December 10, 2024.

When will shareholders receive payment for their tendered shares in the Invesco (IVZ) funds?

Payments are expected to be sent within approximately seven business days after the December 9, 2024 expiration date.