Olshan Client Karpus Investment Management Reaches Agreement with Massachusetts Financial Services Company for a Tender Offer at MFS Investment Grade Municipal Trust (CXH)
Olshan client Karpus Investment Management has entered into an agreement with Massachusetts Financial Services Company (“MFS”), the investment manager of MFS Investment Grade Municipal Trust (“CXH”). Under the agreement, MFS and CXH agreed to conduct a tender offer for up to 15% of its outstanding common shares at a price equal to 98% of CXH’s net asset value. In addition, MFS agreed to commence an additional tender offer approximately six months after the close of the initial tender offer for up to 7.5% of CXH’s outstanding common shares at a price equal to 98% of CXH’s net asset value, provided that CXH’s average trading discount is greater than 6% for the period starting on the date that is 90 calendar days and ending on the date that is 180 calendar days following the date of completion of the initial tender offer. MFS agreed to use its best efforts to commence the initial tender offer no later than August 15, 2017 and the second tender offer promptly following the end of the 180-day period. Under the agreement, Karpus Investment Management has agreed to certain customary standstill provisions. Adam Finerman and represented Karpus Investment Management in connection with its investment in CXH.