Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 14

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 14
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 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 1stand 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.

| Q: | How will holders of preferred shares be affected by the Reorganizations? |

| A: | As of the date of the enclosed Joint Proxy Statement/Prospectus, the Acquiring Fund and MIY each has VRDP                                                           
 Shares outstanding, and MVT and MVF each has VMTP 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 3,564 Series W-7 VRDP Shares outstanding.                      |

The Board of each Fund has authorized the redemption of up to 67% of the Fund’s currently outstanding VRDP or VMTP Shares, as applicable, on one or more occasions between April 1, 2025 and October 1, 2025. Any such redemption is not related to a Reorganization or contingent on shareholder approval of a Reorganization. The timing and amount of any redemption of a Fund’s currently outstanding VRDP Shares or VMTP Shares would depend on a number of factors, including, among others, the desired mix of leverage from preferred shares versus TOBs, yield levels and borrowing costs. In connection with the Reorganizations, the Acquiring Fund expects to issue 777 additional VRDP Shares to MVT (for issuance to MVT VMTP Holders), 2,319 additional VRDP Shares to MIY (for issuance to MIY VRDP Holders), and 1,536 additional