Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 49

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 49
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 discount to NAV or wider premium to NAV than the common shares of any individual Fund prior to the
Reorganizations. Upon consummation of the Reorganizations, the Combined Fund common shares may trade at a price that is less than the current market price of Acquiring Fund common shares. In the Reorganizations, common shareholders of MVT, MIY and
MVF will receive Acquiring Fund common shares based on the relative NAVs (not the market values) of the respective Fund’s common shares. The market value of the common shares of the Combined Fund may be less than the market value of the common
shares of each respective Fund prior to the Reorganizations.

The Board noted that effective upon Closing, the Combined Fund will adopt a
discount management program under which the Combined Fund will, beginning in 2026, intend to offer to purchase a minimum of 5% of its outstanding common shares, subject to the Board’s discretion, at a price equal to 98% of NAV per common share
via annual tender offer if the Combined Fund’s common shares trade at an average daily discount to NAV of more than 10.00% during a measurement period beginning on January 1st and concluding on September 30th of each calendar year (the
“Discount Management Program”). Even if a tender offer is triggered under the Discount Management Program, there is no guarantee that Combined Fund shareholders will be able to sell all of the shares that they desire to sell in any
particular tender offer and there can be no assurances as to the effect that the Discount Management Program will have on the market for the Combined Fund’s shares or the discount at which the Combined Fund’s shares may trade relative to
its NAV.

Potential Effects of the Reorganizations on the Preferred Shares. The Board noted that each Fund has preferred shares
outstanding. As of July 31, 2025, MVT had [777] Series W-7 VMTP Shares outstanding, MIY had [2,319] Series W-7 VRDP Shares outstanding, MVF had [1,536] Series W-7 VMTP Shares outstanding and the Acquiring Fund had [26,364] Series W-7A VRDP Shares and [3,564] Series W-7 VRDP Shares outstanding.
In connection with the Reorganizations, the Acquiring Fund expects to issue [777] additional VRDP Shares to MVT VRDP Holders, [2,319] additional VRDP Shares to MIY VRDP Holders and [1,536]