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

Rhea-AI Summary

Invesco Advisers announced details of tender offers for two municipal funds: Invesco Trust for Investment Grade New York Municipals (NYSE: VTN) and Invesco Pennsylvania Municipal Income Trust (NYSE: VPV). Each Fund will conduct a cash tender offer for 25% of outstanding common shares at 99% of NAV. The offers will run from November 7 to December 9, 2024. If more shares are tendered than authorized, purchases will be made on a prorated basis. The tender offers are part of agreements with Saba Capital Management, which has agreed to certain standstill covenants. Both funds have recently traded at a discount to their NAV.

Positive

• Tender offer provides shareholders opportunity to sell 25% of shares at near-NAV price
• Agreement with Saba Capital includes standstill covenants, potentially reducing activist pressure

Negative

• Funds trading at discount to NAV indicates market undervaluation
• 99% of NAV offer price represents a 1% discount to actual asset value
• Prorated purchase if oversubscribed may limit individual investor participation

Insights

Financial Analyst

This tender offer announcement represents a significant corporate action that directly impacts shareholders of VTN and VPV. The 25% share repurchase at 99% of NAV is a strategic move to address the funds' trading discount and potentially enhance shareholder value. The involvement of activist investor Saba Capital and the resulting standstill agreement adds another layer of significance to this development.

The tender offers could reduce the NAV discount by creating temporary buying pressure and reducing share supply. However, shareholders should note that if the offers are oversubscribed, their tender requests will be prorated, potentially limiting the intended benefits. The 1% discount to NAV in the tender price represents a cost to participating shareholders but still offers better execution than typical market prices for funds trading at wider discounts.

ATLANTA, Nov. 1, 2024 /PRNewswire/ -- Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today additional details of the previously announced tender offers for Invesco Trust for Investment Grade New York Municipals (NYSE: VTN) and Invesco Pennsylvania Municipal Income Trust (NYSE: VPV).

Each Fund will conduct a cash tender offer for 25% of its outstanding common shares at a price equal to 99% of the Fund's net asset value (NAV) per share.  Each Fund's tender offer will commence on Thursday, November 7, 2024, and will expire, unless extended, at 11:59 p.m., New York City time, on Monday, December 9, 2024. Subject to various terms and conditions described in offering materials to be distributed to shareholders: (1) purchases will be made at a price per share equal to 99% of each Fund's net asset value ("NAV") per share as of the close of trading on the first business day after the expiration of the offer; and (2) if more shares are tendered than the amount the Board has authorized to purchase, each Fund, as applicable, will purchase a number of shares equal to the offer amount on a prorated basis. The commencement of the tender offers is pursuant to agreements between each Fund and Saba Capital Management, L.P. ("Saba") and certain associated parties. Pursuant to the agreements, Saba has agreed to be bound by certain standstill covenants.  Saba has filed copies of the agreements with the U.S. Securities and Exchange Commission ("SEC") as exhibits to its Schedule 13D.

Each Fund's common shares have recently traded at a discount to their NAV per share. During the pendency of the tender offer, the current NAV per share will be available by telephone at 1-800-341-2929 or on the Funds' website at www.invesco.com/us.

TENDER OFFER STATEMENT

The above statements are not intended to constitute an offer to participate in the tender offers. Further information about the tender offers will be announced via future press releases. Shareholders will be notified in accordance with the requirements of the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940, as amended, either by publication or mailing or both. The tender offers will be made only by an offer to purchase, a related letter of transmittal, and other documents to be filed with the SEC. Shareholders of the Funds should read the respective offer to purchase and tender offer statement and related exhibits when those documents are filed and become available, as they will contain important information about the tender offers. These and other filed documents will be available to investors for free both at the website of the SEC and from the Funds.

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 l  NOT FDIC INSURED  l  NOT GUARANTEED BY THE BANK  |  MAY LOSE VALUE  |  NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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SOURCE Invesco Ltd.

FAQ

When do the Invesco (IVZ) municipal funds tender offers start and end?

The tender offers start on November 7, 2024, and expire at 11:59 p.m., New York City time, on December 9, 2024, unless extended.

What percentage of shares will Invesco (IVZ) purchase in the tender offers?

Each Fund will purchase 25% of its outstanding common shares at 99% of the Fund's net asset value (NAV) per share.

What happens if more shares are tendered than Invesco (IVZ) is authorized to purchase?

If more shares are tendered than authorized, each Fund will purchase shares on a prorated basis equal to the offer amount.

What is the purchase price for the Invesco (IVZ) tender offers?

The purchase price will be 99% of each Fund's net asset value (NAV) per share as of the close of trading on the first business day after the offer expiration.