MFS Municipal Closed-End Funds Announce Refinancing of Term of Preferred Shares

MFS Municipal Income Trust (NYSE: MFM), MFS Investment Grade Municipal Trust (NYSE: CXH), MFS High Income Municipal Trust (NYSE: CXE), and MFS High Yield Municipal Trust (NYSE: CMU) today announced that each fund has completed the issuance of a new series of Remarketed Variable Rate MuniFund Preferred Shares, Series 2051 ("Series 2051 RVMTP Shares") in a private offering. MFM issued 1,138 shares of Series 2051 RVMTP Shares with an aggregate liquidation preference of $113,800,000, CXH issued 488 shares of Series 2051 RVMTP Shares with an aggregate liquidation preference of $48,800,000, CXE issued 975 shares of Series 2051 RVMTP Shares with an aggregate liquidation preference of $97,5000,000, and CMU issued 750 shares of Series 2051 RVMTP Shares with an aggregate liquidation preference of $75,000,000. Each fund used the proceeds from the sale of its Series 2051 RVMTP Shares to fund the redemption of all of its outstanding Variable Rate Municipal Term Preferred Shares ("VMTP Shares"). Each fund's VMTP Shares were redeemed at its liquidation preference per share plus unpaid dividends accumulated from the original issue date to, but excluding, the redemption date. As a result of the Series 2051 RVMTP Shares issuance and the redemption of its outstanding VMTP Shares, each fund's leverage attributable to preferred shares remains substantially unchanged.

The Series 2051 RVMTP Shares have a stated maturity of July 20, 2051, and an early termination date, which initially will be 42 months from the date of original issuance. Absent an agreement with the holder(s) of the Series 2051 RVMTP Shares to extend the 42-month period (with respect to the initial 42-month period and subsequent 42-month periods) and retain the Series 2051 RVMTP Shares on the same or new terms or a successful remarketing of the Series 2051 RVMTP Shares, the Series 2051 RVMTP Shares are subject to mandatory redemption. Series 2051 RVMTP Shares are reset weekly to a fixed spread (dependent on the then current ratings of the Series 2051 RVMTP Shares) against the Securities Industry and Financial Markets Association Municipal Swap Index. The Series 2051 RVMTP of each fund rank senior in priority to its outstanding common shares as to payments of dividends and distributions upon liquidation.