BlackRock Inc. will partially redeem auction rate preferred stock issued by many of its tax-free closed-end bond funds, the New York-based firm said.
Most of the redemptions are set for this month, with the remainder in July.
The fund company is redeeming ARPS issued by 56 of its 61 closed-end funds that use ARPS.
The redemptions total $1.6 billion worth of ARPS, or about 20% of the amount issued by its funds.
But the amount varies by fund, ranging from 2% to 42% of the ARPS outstanding for each, BlackRock said.
Redemptions will be allocated to broker-dealers of record by a random lottery.
Each brokerage firm will then determine how to allocate redemptions among its clients.
For more information, including redemption dates and amounts for specific funds, see BlackRock’s June 2 statement.
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