Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
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Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
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 upon an assessment of economic and                             
 market conditions by the Investment Advisor. MYI’s portfolio at any given time may include both long-term and intermediate-term municipal bonds. |

Leverage: Each Fund utilizes leverage through the issuance of either VMTP Shares or VRDP Shares and residual interest municipal tender option bonds (“TOBs”). See “The Acquiring Fund’s Investments—Leverage;” “General Risks of Investing in the Acquiring Fund—Leverage Risk;” and “General Risks of Investing in the Acquiring Fund—Tender Option Bond Risk.” Each of MVT and MVF leverages its assets through the use of VMTP Shares and TOBs. Each of the Acquiring Fund and MIY currently leverages its assets through the use of VRDP Shares and TOBs. The Acquiring Fund is expected to continue to leverage its assets after the Closing Date of the Reorganizations through the use of VRDP Shares and TOBs. After the consummation of the Reorganizations, common shareholders of the Acquiring Fund, including former Target Fund common shareholders, will bear the leverage costs associated with the Acquiring Fund VRDP Shares and will be subject to the terms of the Acquiring vii

Fund VRDP Shares, including that the Acquiring Fund VRDP Shares will be senior in priority to the Acquiring Fund common shares as to the payment of dividends and the distribution of assets upon dissolution, liquidation or winding up of the affairs of the Acquiring Fund. Please see “Information about the Preferred Shares of the Funds” in the Joint Proxy Statement/Prospectus for additional information about the preferred shares of each Fund. The annualized dividend rates for the preferred shares for the twelve-month period ended January 31, 2025 were as follows:

| Fund                 |     | Preferred Shares |     | Rate  |
| MVT                  |     | VMTP Shares      |     | 4.69% |
| MIY                  |     | VRDP Shares      |     | 4.22% |
| MVF                  |     | VMTP Shares      |     | 4.69% |
| Acquiring Fund (MYI) |     | VRDP Shares      |     | 4.22% |

Please see below a comparison of certain important ratios related to (i) each Fund’s use of leverage as of June 30, 2025, (ii) the Combined Fund’s estimated use of leverage, assuming only the Reorganization of MVT into the Acquiring Fund