Company: MMT
Filing Date: 2025-12-12
Form Type: PRE 14A
Source: 0000930413-25-003631
Chunk: 51

Company: MFS MULTIMARKET INCOME TRUST
Filing Date: 2025-12-12
Form: PRE 14A
Chunk 51
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 $355 |

Leverage

Each Trust may use leverage to the extent
permitted by the 1940 Act. Currently, the 1940 Act and the rules and regulations thereunder generally limit the extent to which
a Trust may utilize borrowings, together with any other senior securities representing indebtedness, to 33 1/3% of the Trust’s
total assets (including the assets subject to, and obtained with, the proceeds of such leverage) at the time utilized (less the
Trust’s liabilities and indebtedness not represented by senior securities). In addition, the 1940 Act limits the extent to
which a Trust may issue preferred shares plus senior securities representing indebtedness to 50% of the Trust’s total assets
(less the Trust’s liabilities and indebtedness not represented by senior securities). Each Combined Fund anticipates that
it will use leverage similarly to the applicable Trust prior to the Reorganizations.

Each Trust’s strategies relating
to its use of leverage may not be successful, and each Trust’s use of leverage will cause the Trust’s NAV to be more
volatile than it would otherwise be. There can be no guarantee that a Trust will leverage its assets or, to the extent the Trust
utilizes leverage, what percentage of its assets such leverage will represent.

As of October 31, 2025, MMT had aggregate
leverage from borrowings as a percentage of its total assets of 25%. As of October 31, 2025, MFM had aggregate leverage from the
issuance of preferred shares and tender option bonds (“TOBs”) and borrowings as a percentage of its total assets of
31%.

If the Reorganizations had occurred on
October 31, 2025, and all of the Reorganizations were approved and consummated, the aggregate leverage from borrowings as a percentage
of its total assets for MMT would be 17% and the aggregate leverage from the issuance of preferred shares and TOBs and borrowings
as a percentage of its total assets for MFM would be 34%.

Accounting and Valuation Policies,
Impact to the Combined Fund’s NAV

At the closing of each Reorganization,
each Reorganization Agreement sets forth that the Target Fund assets will be valued in accordance with the Target Fund’s valuation
procedures as approved by the Board of the Target Fund. Upon the consummation of the Reorganization, the assets transferred to
each Trust will be valued pursuant to the Trust’s valuation procedures as approved by the