Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 189

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 189
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 transactions.

See “Risk Factors and Special Considerations— General Risks of Investing in the Acquiring Fund—Tender Option Bond Risk”
for a description of the risks involved with a TOB issuer.

Credit Facility.MVT is permitted to leverage its
portfolio by entering into one or more credit facilities. If MVT enters into a credit facility, MVT may be required to prepay outstanding amounts or incur a penalty rate of interest upon the occurrence of certain events of default. MVT would also
likely have to indemnify the lenders under the credit facility against liabilities they may incur in connection therewith. In addition, MVT expects that any credit facility would contain covenants that, among other things, likely would limit
MVT’s ability to pay distributions in certain circumstances, incur additional debt, change certain of its investment policies and engage in certain transactions, including mergers and consolidations, and require asset coverage ratios in
addition to those required by the 1940 Act. MVT may be required to pledge its assets and to maintain a portion of its assets in cash or high-grade securities as a reserve against interest or principal payments and expenses. MVT expects that any
credit facility would have customary covenant, negative covenant and default provisions. There can be no assurance that MVT will enter into an agreement for a credit facility or one on terms and conditions representative of the foregoing, or that
additional material terms will not apply. In addition, if entered into, a credit facility may in the future be replaced or refinanced by one or more credit facilities having substantially different terms or by the issuance of preferred shares.

Reverse Repurchase Agreements.MVT may enter into reverse repurchase agreements with respect to its portfolio investments
subject to the investment restrictions set forth herein. Reverse repurchase agreements involve the sale of securities held by MVT with an agreement by MVT to repurchase the securities at an agreed upon price, date and interest payment. In accordance
with Rule 18f-4 under the 1940 Act, when MVT engages in reverse repurchase agreements and similar financing transactions, MVT may either (i) maintain asset coverage of at least 300% with respect to such
transactions and any other borrowings in the aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such transactions. Reverse
repurchase agreements involve the risk that the market value of the securities acquired in connection with the reverse repurchase agreement may decline below the price