Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 49

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 49
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 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 3,564 Series W-7 VRDP Shares and the Combined Fund had 8,196 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 additional VRDP Shares to MVF

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VRDP Holders. Following the completion of the Reorganizations, the Combined Fund is expected to have 8,196 VRDP Shares outstanding.

The Board noted that, assuming all of the Reorganizations are approved by the requisite shareholders, upon the Closing Date of the
Reorganizations, MVT, MIY and MVF VRDP each will receive newly issued Acquiring Fund VRDP Shares, par value $0.10 per share and with a liquidation preference of $100,000 per share (plus an amount equal to any accumulated and unpaid dividends that
have accrued on the MVT, MIY, MVF VRDP Shares or VMTP Shares, as applicable, up to and including the day immediately preceding the Closing Date if such dividends have not been paid prior to the Closing Date), in an amount equal to the number of
issued and outstanding MVT, MIY and MVF VRDP Shares or VMTP Shares, applicable, immediately prior to the Closing Date, and then each MVT, MIY or MVF will distribute such newly issued Acquiring Fund VRDP Shares to the MVT, MIY, or MVF VRDP Holders or
VMTP Holders, as applicable, pro rata. The newly issued Acquiring Fund VRDP Shares are expected to be of a substantially identical series as those of the Acquiring Fund’s outstanding VRDP Shares. No fractional Acquiring Fund VRDP Shares will
be issued. The terms of the Acquiring Fund VRDP Shares to be issued