BlackRock MuniAssets Fund, Inc. (MUA) Announces Terms of Rights Offering to Pursue Attractive High Yield Municipal Opportunities
BlackRock MuniAssets Fund, Inc. (NYSE: MUA) (the "Fund") today announced the terms of transferable rights ("Rights") to be issued to the holders of the Fund's common shares of beneficial interest (par value $0.10 per share) ("Shares") as of July 28, 2026 (the "Record Date"). Holders of Rights will be entitled to subscribe for additional Shares (the "Offer") at a discount to the market price of the Shares.
BlackRock Advisors, LLC (the “Adviser”) believes this is an attractive time to raise additional assets for the Fund based on several factors, including the following potential benefits:
Compelling tax-advantaged income potential: Interest rate volatility has pushed yields higher and steepened the curve, creating, in our view, more attractive entry points. High yield municipal (“HY Muni”) returns are increasingly driven by income, with tax-equivalent yields (TEY) approaching 10%.1
Differentiated access that supports affordable housing in America: Housing affordability remains a significant challenge across the United States. BlackRock is seeking to partner with low-income housing developers to bridge this gap. The Adviser expects to evaluate opportunities for the Fund to invest in tax-exempt bonds that finance affordable rental housing projects, including Low-Income Housing Tax Credit (LIHTC) bonds, where we believe that BlackRock’s access is a differentiator among peers. Shareholders may benefit from above-average anticipated yields and strong fundamentals with historically low defaults. MUA currently allocates less than 50bps to this sector, with the potential to grow the allocation to up to 15-20% of managed assets, providing significant earnings accretion to shareholders.
