Company: MYI
Filing Date: 2025-07-16
Form Type: N-14 8C
Source: 0001193125-25-159991
Chunk: 176

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-16
Form: N-14 8C
Chunk 176
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 can create risks. When leverage is employed, the NAV and market price
of the common shares and the yield to holders of common shares will be more volatile than if leverage were not used. Changes in the value of MVT’s portfolio, including securities bought with the proceeds of leverage, will be borne entirely by
the holders of common shares. If there is a net decrease or increase in the value of MVT’s investment portfolio, leverage will decrease or increase, as the case may be, the NAV per common share to a greater extent than if MVT did not utilize
leverage. A reduction in MVT’s NAV may cause a reduction in the market price of its shares. During periods in which MVT is using leverage, the fee paid to the Investment Advisor for advisory services will be higher than if MVT did not use
leverage, because the fees paid will be calculated on the basis of MVT’s Managed Assets, which includes the proceeds from leverage. MVT’s leveraging strategy may not be successful.

Certain types of leverage MVT may use may result in MVT being subject to covenants relating to asset coverage and portfolio composition
requirements. MVT may be subject to certain restrictions on investments imposed by one or more lenders or by guidelines of one or more rating agencies, which may issue ratings for any short-term debt securities or preferred shares issued by MVT. The
terms of any borrowings or rating agency guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the 1940 Act. The Investment Advisor does not believe that these covenants or
guidelines will impede it from managing MVT’s portfolio in accordance with its investment objective and policies if MVT were to utilize leverage.

Under the 1940 Act, MVT is not permitted to issue senior securities if, immediately after the issuance of such senior securities, MVT would
have an asset coverage ratio (as defined in the 1940 Act) of less than 300% with respect to senior securities representing indebtedness (i.e., for every dollar of indebtedness outstanding, MVT is required to have at least three dollars of
assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of preferred shares outstanding, MVT is required to have at least two dollars of assets). The 1940 Act

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also provides that MVT may not declare distributions, or purchase its stock (including through tender offers) if, immediately after doing so