BlackRock Announces Special Distributions Related to the Reorganization of Five Municipal Closed-End Funds

BlackRock Advisors, LLC today announced the declaration of a special distribution for BlackRock Municipal Income Investment Quality Trust (NYSE: BAF), BlackRock Municipal Bond Trust (NYSE: BBK), BlackRock MuniHoldings Fund II, Inc. (NYSE: MUH), BlackRock MuniHoldings Quality Fund, Inc. (NYSE: MUS), and BlackRock MuniHoldings Fund, Inc. (NYSE: MHD) (collectively, the “Funds”) in connection with the reorganizations of BAF, BBK, MUH, and MUS into MHD, with MHD continuing (the “Combined Fund”) as the surviving Fund (the “Reorganizations”).

With respect to each of the Funds, the special distribution declared today represents undistributed net investment income earned through the effective date of the Reorganizations. In order to maintain status as a regulated investment company and to avoid the imposition of a corporate level income tax, each of BAF, BBK, MUH, and MUS are required to declare a distribution of all net investment income prior to the consummation of the Reorganizations as described below. Other than the special distribution announced today, BAF, BBK, MUH, and MUS will declare no further distributions prior to or following the Reorganizations. As this special distribution includes all net investment income earned by each Fund in earlier periods and not previously distributed, it is not indicative of the amount of the Combined Fund’s future monthly distributions.

BAF, BBK, MUH, and MUS are declaring a special distribution that will be payable on April 1, 2021. The ex-dividend date for the distribution is March 2, 2021 and the record date is March 3, 2021. Accordingly, persons who are holders of record of BAF, BBK, MUH, or MUS common shares on March 3, 2021 should expect to receive the distribution. The distribution payable to shareholders of BAF, BBK, MUH, and MUS will be paid in cash. Common shares of BAF, BBK, MUH, or MUS acquired after March 1^st, 2021 will not be entitled to the distribution.

MHD is declaring a special distribution that will be payable on April 1, 2021. The ex-dividend date for the distribution is March 2, 2021, and the record date is March 3, 2021. Accordingly, persons who are holders of record of MHD common shares on March 3, 2021 should expect to receive the distribution. Common shares of MHD acquired after March 1^st, 2021 will not be entitled to the distribution.

Common shares of BAF, BBK, MUH, MUS, or MHD acquired after March 1^st, 2021 will not be entitled to their respective special distributions and will not be eligible to receive a distribution until an initial distribution is declared on the Combined Fund after the closing of the Reorganizations. We expect that on April 1, 2021 the Combined Fund will declare its first monthly distribution payable on May 3, 2021.