Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 17

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 17
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 or MVF VMTP Shares or VRDP Shares, as applicable, up to and including the day immediately preceding the Closing Date of the Reorganizations if such dividends have not been paid prior to the Closing Date), such number equivalent to the respective number of VMTP Shares or VRDP Shares of each Target, in exchange for all of the assets of each of each MVT, MIY or MVF respectively, and such newly issued Acquiring Fund VRDP Shares received by each Target Fund, will be distributed to the respective VRDP Share or VMTP Share held by the MVT, MIY or MVF VMTP Holders or VRDP Holders, pro rata, immediately prior to the Closing Date. The terms of the special rate period applicable to the newly issued Acquiring Fund VRDP Shares are expected to be identical to the terms of the special rate period applicable to the outstanding Acquiring Fund VRDP Shares as of the Closing Date. Such special rate period will terminate on June 17, 2026, unless extended. A Fund may designate any succeeding subsequent rate period of the VRDP Shares as a “special rate period” subject to the restrictions and requirements set forth in the governing instrument for such Fund’s VRDP Shares. During a special rate period, a Fund may choose to modify the terms of the VRDP Shares as permitted by the governing instrument for such Fund’s VRDP Shares, including, for example, special provisions relating to the calculation of dividends and the redemption of the VRDP Shares. The Reorganizations will not result in any changes to the terms of the Acquiring Fund’s VRDP Shares currently outstanding. The terms of the Acquiring Fund’s VRDP Shares may change from time to time, subject to Board approval. The newly issued Acquiring Fund VRDP Shares will have terms that are similar to the terms of the outstanding MIY VRDP Shares, with certain differences. While the MIY VRDP Shares have a mandatory redemption date of May 1, viii

2041, the newly issued Acquiring Fund VRDP Shares are expected to have a mandatory redemption date of June 1, 2041. Shareholders of the Acquiring Fund will remain shareholders of the Acquiring Fund, which will have additional common shares and VRDP Shares outstanding after the Reorganizations.

| Q: | Will I have to pay any U.S. federal income taxes as a result of the Reorganizations? |

A: Each Reorganization is intended to qualify as a “reorganization” within the meaning of Section 368(a)