Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 7

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 7
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” refers to the Acquiring Fund as the surviving Fund after the consummation of each of the Reorganizations. Each Reorganization is not contingent upon the approval of any other Reorganization. If a Reorganization is not consummated, the Fund for which such Reorganization(s) was not consummated would continue to exist and operate on a standalone basis.

| Q: | Why has each Fund’s Board recommended these proposals? |

A: The Board of Directors (each, a “Board” and each member thereof, a “Board Member”) of each Fund has determined that its Reorganization(s) is in the best interests of its Fund and that the interests of existing common shareholders and preferred shareholders of its Fund will not be diluted with respect to net asset value (“NAV”) and liquidation preference, respectively, as a result of the Reorganization. The Reorganizations seek to achieve certain economies of scale and other operational efficiencies by combining four funds that have similar investment objectives and similar investment strategies, policies and restrictions and are managed by the same investment adviser, BlackRock Advisors, LLC (the “Investment Advisor”). ii

In light of these similarities, the Reorganizations are intended to reduce fund redundancies and create a single, larger fund that may benefit from anticipated operating efficiencies and economies of scale. The Reorganizations are intended to result in the following potential benefits to common shareholders:

| (i) | lower net total expenses (excluding interest expense) per Common Share for common shareholders of each Fund                                                
 (as common shareholders of the Combined Fund following the Reorganizations) due to economies of scale resulting from the larger size of the Combined Fund; |

| (ii) | improved net earnings yield on NAV for common shareholders of MVT and MIY; |

| (iii) | improved secondary market trading of the common shares of the Combined Fund; and |

| (iv) | operating and administrative efficiencies for the Combined Fund, including the potential for the following: |

| (a) | greater investment flexibility and investment options; |

| (b) | greater diversification of portfolio investments; |

| (c) | the ability to trade portfolio securities in larger positions and more favorable transaction terms; |

| (d) | additional sources of leverage or more competitive leverage terms and more favorable transaction terms; |

| (e) | benefits from having fewer closed-end funds offering similar                                                                                                               
 products in the market, including an increased focus by investors on the remaining funds in the market (including the Combined Fund) and additional research coverage; and |

| (