MFS Investment Grade Municipal Trust Announces Partial Redemption of Preferred Shares

The trust will redeem up to 120 of its 372 Series 2051 RVMTP Shares on May 8, 2026.

Apr. 8, 2026 at 8:05pm

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MFS Investment Grade Municipal Trust (NYSE: CXH) announced that it will complete an optional partial redemption of its Remarketable Variable Rate MuniFund Term Preferred Shares, Series 2051 on May 8, 2026. The trust will redeem up to 120 of the 372 Series 2051 RVMTP Shares, each at a redemption price of $100,000 per share plus unpaid dividends and other distributions.

Why it matters

The redemption of a portion of CXH's preferred shares will reduce the trust's overall leverage, potentially improving its financial position and flexibility. Preferred share redemptions are a common way for closed-end funds to manage their capital structure and leverage levels.

The details

CXH will redeem up to 120 of the 372 Series 2051 RVMTP Shares it has outstanding. The redemption price will be $100,000 per share plus any unpaid dividends and distributions accumulated since the original issue date. This partial redemption will lower CXH's total preferred share leverage, though the trust will still have 252 Series 2051 RVMTP Shares remaining.

  • CXH will redeem the preferred shares on May 8, 2026.

The players

MFS Investment Grade Municipal Trust

A closed-end investment company advised by MFS Investment Management that invests in municipal bonds.

MFS Investment Management

The investment advisor for MFS Investment Grade Municipal Trust, founded in 1924 and managing $622.2 billion in assets as of March 31, 2026.

The Bank of New York Mellon

The Tender and Paying Agent responsible for processing the redemption payments to holders of CXH's Series 2051 RVMTP Shares.

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The takeaway

This partial redemption of preferred shares by MFS Investment Grade Municipal Trust demonstrates the fund's prudent capital management as it seeks to optimize its leverage and financial position for the benefit of common shareholders.