BlackRock American Income Trust Proposes Expanded Share Issuance, Calls General Meeting for July 2026

General Meeting Scheduled to Approve Additional Share Issuance

The Board of BlackRock American Income Trust plc has scheduled a general meeting on 24 July 2026 at BlackRock’s London offices to seek shareholder consent for new authorities to allot or sell further Ordinary Shares from treasury on a non-pre-emptive basis. This follows the successful use of the existing authority, which included the sale of 3,948,000 treasury shares due to strong investor interest.

The proposal includes issuing up to 12,072,026 Ordinary Shares, approximately 20% of the issued share capital excluding treasury shares. This will provide flexibility to meet ongoing market demand and manage the premium at which shares trade relative to Net Asset Value (NAV).

Background and Justification for the Share Issuance

BlackRock American Income Trust plc has demonstrated strong performance, with its systematic active equity mandate outperforming its benchmark. The company’s focus on US value stocks and attractive dividend policy has driven increased investor interest, resulting in shares trading at a premium to NAV and enabling growth through accretive treasury share sales.

At the 2026 AGM, shareholders authorized directors to allot and sell up to 5,641,213 shares. As of the latest practicable date, 69.98% of this authority was utilized, raising about £10,369,000. The company now seeks to renew and expand this authority to maintain market responsiveness and avoid delays and costs associated with further shareholder approvals before the 2027 AGM.

Details of the Proposed Share Issuance Authorities

The Board requests approval for two new authorities, each permitting allotment or sale of up to 6,036,013 shares, roughly 10% of the issued share capital excluding treasury shares per authority. The combined total exceeds the usual 10% limit typically sought by investment companies, reflecting confidence in the company’s market position and the advantages of expanding its capital base.

Assuming full utilization at current NAV plus premium, net proceeds could reach approximately £32,757,000. These funds will be invested according to the company’s published investment policy, though specific targets were not disclosed.

Impact on Shareholders and Market Positioning

The proposed issuance is expected to enhance share liquidity, allowing more flexible investor allocation. Increasing the company’s size can spread operating costs over a larger capital base, potentially lowering the ongoing charges ratio. Issuing shares at a premium to NAV is also anticipated to increase existing shareholders’ value.

Shareholders are safeguarded against economic dilution as shares will be issued at no less than NAV plus a premium covering costs. The Board believes these steps benefit shareholders and support the trust’s growth and market presence.

Financial Metrics and Market Environment

As of the latest practicable date, BlackRock American Income Trust held 35,001,167 shares in treasury, representing about 57.99% of issued share capital excluding treasury shares. The trust’s ability to trade at a premium to NAV signals strong market demand and investor confidence in its strategy and performance.

The focus on US value stocks and the systematic active equity mandate have been key factors in recent success. Continued demand for shares aligns with broader market trends favoring value and income-generating investments amid current economic conditions.

Logistics and Cost Considerations

The company disclosed that costs for convening the general meeting and related activities are approximately £33,500 plus VAT. These expenses are justified by the benefits of expanded share issuance authority, aimed at meeting sustained investor demand and enhancing financial flexibility.

Shareholders are encouraged to review the circular carefully and consider the resolutions. The meeting’s outcome will influence the company’s ability to sustain growth and capitalize on market opportunities.

Conclusion and Investor Guidance

The general meeting on 24 July 2026 is pivotal for BlackRock American Income Trust’s strategic direction. Investors should closely monitor the results, as approval of the new authorities could significantly affect the trust’s market position and financial performance.

With prospects for increased liquidity and enhanced shareholder value, the proposed share issuance offers a strategic opportunity to leverage recent successes and address evolving investor needs.