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

Rhea-AI Summary

Invesco Advisers has announced the final results of tender offers for two municipal funds. For Invesco Trust for Investment Grade New York Municipals (VTN), approximately 6.8M shares (35%) were tendered, with the fund accepting 4.9M shares (71.42% of tendered) at $11.87 per share, representing 99% of NAV. Post-purchase, VTN will have 14.6M shares outstanding.

For Invesco Pennsylvania Value Municipal Income Trust (VPV), about 8.1M shares (33.9%) were tendered, with the fund accepting 6M shares (73.79% of tendered) at $11.69 per share, also at 99% of NAV. After the purchase, VPV will have 17.9M shares outstanding.

Positive

• Both tender offers were oversubscribed, indicating strong shareholder interest
• Purchase prices at 99% of NAV represent a favorable exit opportunity for shareholders
• Significant share reduction (25% for each fund) may help reduce trading discounts to NAV

Negative

• Not all tendered shares were accepted due to oversubscription (71.42% acceptance for VTN, 73.79% for VPV)
• Shareholders face proration, potentially leaving them with unwanted partial positions

Insights

Financial Analyst

The tender offers for VTN and VPV demonstrate significant shareholder interest, with both funds seeing oversubscription at approximately 35% and 33.9% of outstanding shares tendered respectively, versus the 25% offer size. The pricing at 99% of NAV ($11.87 for VTN and $11.69 for VPV) represents a minimal discount, suggesting strong market demand. The pro-ration rates of 71.42% for VTN and 73.79% for VPV indicate healthy shareholder participation. This tender offer effectively provides liquidity to shareholders while maintaining the funds' structures. The reduction in outstanding shares (to 14.6M for VTN and 17.9M for VPV) could potentially lead to improved trading efficiency and NAV support in the secondary market.

Market Research Analyst

This tender offer execution reflects broader trends in the closed-end fund market where managers are actively addressing persistent discounts to NAV. The strong shareholder response, with both funds seeing over 33% tender participation, indicates ongoing demand for liquidity events in the municipal bond fund sector. The minimal 1% discount to NAV is notably shareholder-friendly compared to typical tender offers. For Invesco (IVZ), this demonstrates proactive fund management and commitment to shareholder value, which could positively impact their reputation in the CEF market. The reduced share count may help improve trading dynamics and potentially narrow future NAV discounts.

ATLANTA, Dec. 11, 2024 /PRNewswire/ -- Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today the final results of the 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 calculations by Computershare Trust Company, N.A., the depositary agent (the "Agent") for the Fund's tender offer, approximately 6,818,415 Common Shares, or approximately 35% of the Fund's Common Shares outstanding, were tendered through the Expiration Date. The Fund has accepted 4,869,438 shares (subject to adjustment for fractional shares) for cash payment at a price equal to $11.87 per share. This purchase price is 99% of the Fund's net asset value ("NAV") per share of $11.99 as of the close of regular trading on the New York Stock Exchange ("NYSE") on December 10, 2024, the pricing date stated in the Offer to Purchase. Because the total number of Common Shares tendered exceeded the number of Common Shares offered to purchase, all tendered Common Shares are subject to proration in accordance with the terms of the Offer to Purchase. Under final pro-ration, 71.42% of the Common Shares tendered will be accepted for payment, subject to adjustment for fractional shares. Following the purchase of the tendered shares, the Fund will have approximately 14,608,315 Common Shares outstanding.

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 calculations by the Agent, approximately 8,073,690 Common Shares, or approximately 33.9% of the Fund's Common Shares outstanding, were tendered through the Expiration Date.  The Fund has accepted 5,957,386 shares (subject to adjustment for fractional shares) for cash payment at a price equal to $11.69 per share. This purchase price is 99% of the Fund's net asset value ("NAV") per share of $11.81 as of the close of regular trading on the New York Stock Exchange ("NYSE") on December 10, 2024, the pricing date stated in the Offer to Purchase. Because the number of shares tendered exceeded the number of Common Shares offered to purchase, all tendered Common Shares are subject to pro-ration in accordance with the terms of the Offer to Purchase. Under final proration, 73.79% of the Common Shares tendered will be accepted for payment, subject to adjustment for fractional shares. Following the purchase of the tendered shares, the Fund will have approximately 17,872,158 Common Shares outstanding.

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 INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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SOURCE Invesco Ltd.

FAQ

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

The tender offer price for VTN was $11.87 per share, which represents 99% of the fund's NAV of $11.99 as of December 10, 2024.

How many shares were accepted in the IVZ Pennsylvania Value Municipal Income Trust (VPV) tender offer?

VPV accepted 5,957,386 shares, representing 25% of its outstanding Common Shares, at $11.69 per share.

What was the proration rate for tendered shares in the VTN tender offer?

The final proration rate for VTN was 71.42% of tendered shares, meaning this percentage of shares submitted by each tendering shareholder was accepted.

How many shares will remain outstanding for VPV after the tender offer?

Following the purchase of tendered shares, VPV will have approximately 17,872,158 Common Shares outstanding.