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MFS Investment Management Announces Planned Liquidation of MFS California Municipal Fund

BOSTON--(BUSINESS WIRE)--

MFS Investment Management® (“MFS®”) announced that, at a meeting held today, the Board of Trustees of MFS® California Municipal Fund (the “fund”) (NYSE American: CCA), a closed-end management investment company, approved a plan of liquidation and termination for the fund (the "liquidation"). The liquidation is currently expected to be completed on or about October 4, 2019.

In determining to terminate and liquidate the fund, the fund's investment manager, MFS, and the board considered a variety of factors. These included a request for a liquidity event made by a common shareholder holding a significant percentage of the fund's common shares; the relatively small size of the fund; the nature of the fund's portfolio holdings; and the fund's common share trading discount to net asset value (NAV). MFS and the board also considered alternatives, including merging the fund into another investment company; converting the fund to an open-end structure; or conducting a tender offer. On balance it was determined that a liquidation would be in the best interests of the fund and its shareholders.

Subsequent to the effective date of the plan of liquidation (on or about September 11, 2019), the fund will begin the orderly liquidation of its assets, determine and pay, or set aside in cash or cash equivalents, an amount at least equal to all known or reasonably ascertainable liabilities and obligations of the fund and make one or more liquidating distributions to the fund’s common shareholders. The fund will also redeem its outstanding Variable Rate Municipal Term Preferred Shares during this period prior to the liquidation. The fund may also begin to liquidate certain holdings prior to the effective date of the plan. The fund has fixed the close of business on September 11, 2019, as the record date for determining the common shareholders of the fund entitled to receive liquidating distributions. As of the effective date of the plan, the transfer agent's share register will be closed (except as necessary to allow settlement of trades made on or before record date). September 11, 2019, is expected to be the last day of trading of the fund’s common shares on the NYSE American. The MFS Closed-End Funds Dividend Reinvestment and Cash Purchase Plan for the fund will be terminated and shares held in the plan will be liquidated and proceeds will be remitted directly to shareholders participating in the plan. The fund's recurring monthly common share distribution that ordinarily would have been declared and paid in September 2019 will not be declared or paid and the August 2019 monthly distribution will be the fund's final monthly distribution. The fund’s liquidating distributions will be paid in cash. It is currently anticipated that the liquidation will be completed on or about October 4, 2019.

About MFS Investment Management
In 1924, MFS launched the first US open-end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of June 30, 2019, MFS managed US$488.8 billion in assets on behalf of individual and institutional investors worldwide. Please visit mfs.com for more information.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in a Fund’s performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of a Fund’s investment adviser to attract or retain key employees, inability of a Fund to implement its investment strategy, inability of a Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

The fund is a closed end investment product advised by MFS Investment Management. Common shares of the fund are only available for purchase/sale on the NYSE American at the current market price. Shares may trade at a discount to NAV. Shares of the fund are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the fund involve investment risk, including possible loss of principal.

MFS Investment Management
111 Huntington Ave, Boston, MA 02199

1038166 43634.1

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