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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 12, 1999
SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF
THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [ ]
Check the appropriate box:
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[ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission
Only (as permitted by Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[X] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-2.
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MUNIYIELD NEW JERSEY FUND, INC.
MUNIVEST NEW JERSEY FUND, INC.
P.O. BOX 9011
PRINCETON, NEW JERSEY 08543-9011
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-12.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
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(2) Form, Schedule or Registration Statement No.:
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(3) Filing Party:
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(4) Date Filed:
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MUNIYIELD NEW JERSEY FUND, INC.
MUNIVEST NEW JERSEY FUND, INC.
Dear Stockholder:
You are being asked to consider a transaction involving your Fund and the
other Fund listed above. The transaction is a reorganization of similar funds in
which one Fund will acquire the other Fund. The following chart outlines the
reorganization structure.
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Surviving Fund Fund to be Acquired
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MuniYield New Jersey Fund, Inc. MuniVest New Jersey Fund, Inc.
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On December 15, 1999, each Fund will hold a special Stockholders' Meeting
to consider the Reorganization, which must be approved by the stockholders of
each Fund involved. A combined proxy statement and prospectus that provides
information about the proposed Reorganization and about each Fund is enclosed
along with a Question and Answer sheet that addresses frequently asked
questions.
You are being asked to approve the Agreement and Plan of Reorganization
between the Funds pursuant to which MuniYield New Jersey Fund, Inc. will acquire
the assets and assume the liabilities of MuniVest New Jersey Fund, Inc. in
exchange for newly issued shares of Common Stock and Auction Market Preferred
Stock of MuniYield New Jersey Fund, Inc. MuniVest New Jersey Insured Fund, Inc.
will distribute these shares to its stockholders so that holders of Common Stock
will receive Common Stock of MuniYield New Jersey Fund, Inc. and holders of
Auction Market Preferred Stock will receive Auction Market Preferred Stock of
MuniYield New Jersey Fund, Inc. on the basis described in the combined proxy
statement and prospectus.
The Board of Directors of each Fund has reviewed the Reorganization
proposal and recommends that you vote FOR the proposal after carefully reviewing
the enclosed materials.
Your vote is important. Please take a moment now to sign and return your
proxy card in the enclosed postage paid return envelope. You may also vote on
the internet by visiting http://www.proxyvote.com and entering the 12 digit
control number located on your proxy card. If we do not hear from you after a
reasonable amount of time, you may receive a telephone call from our proxy
solicitor, Shareholder Communications Corporation, reminding you to vote your
shares.
Sincerely,
Alice A. Pellegrino
Secretary of MuniYield New Jersey
Fund, Inc. and MuniVest New Jersey
Fund, Inc.
Enclosures
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MUNIYIELD NEW JERSEY FUND, INC.
MUNIVEST NEW JERSEY FUND, INC.
Q. WHY AM I RECEIVING THIS PROXY MATERIAL?
A. As a stockholder of one of the Funds, you are being asked to consider the
Reorganization of the Funds. The transaction requires the approval of each
Fund's stockholders.
Q. WILL THE REORGANIZATION CHANGE MY RIGHTS AND PRIVILEGES AS A STOCKHOLDER?
A. Your rights and privileges as a stockholder will not change in any
substantial way as a result of the Reorganization. In addition, the
stockholder services available to you after the Reorganization will be
substantially the same as the stockholder services currently available to
you.
Q. HOW WILL THE REORGANIZATION BENEFIT ME AND OTHER STOCKHOLDERS?
A. All stockholders should consider the following:
- After the Reorganization, the Fund's stockholders will be
invested in a fund with an increased level of net assets with
substantially similar investment objectives and policies:
- After the Reorganization, holders of Common Stock are expected
to experience:
[ ] a lower aggregate operating expense ratio (the ratio of
operating expenses to total fund assets) than any individual Fund
prior to the Reorganization;
[ ] a Fund with greater efficiency and flexibility in its portfolio
management; and
[ ] a more liquid public trading market for the shares of Common Stock.
Q. WILL THE REORGANIZATION AFFECT THE VALUE OF MY INVESTMENT?
A. The value of your investment will not change.
Q. AFTER THE REORGANIZATION, WILL I OWN THE SAME NUMBER OF SHARES OF COMMON
STOCK AS I CURRENTLY OWN?
A. Yes, if you currently own shares of Common Stock of MuniYield New Jersey
Fund, Inc. You will not receive any additional shares of Common Stock and
the number of shares that you own after the Reorganization will be the same
as the number of shares of
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Common Stock that you currently own.
No, if you currently own shares of Common Stock in one of the Acquired
Funds. You will receive shares of Common Stock of MuniYield New Jersey
Fund, Inc. with the same aggregate net asset value as the shares of Common
Stock of MuniVest New Jersey Fund, Inc. you currently own on the business
day prior to the closing date of the Reorganization (the "Valuation Date").
The number of shares you receive will depend on the relative net asset
values of the shares of Common Stock of the Funds on that date. For
example, suppose that you own 10 shares of Common Stock of MuniVest New
Jersey Fund, Inc. If the net asset value of the Common Stock of MuniVest
New Jersey Fund, Inc. on the Valuation Date is $6 per share, and the net
asset value of MuniYield New Jersey Fund, Inc.'s Common Stock is $12 per
share, you will receive 5 shares of MuniYield New Jersey Fund, Inc. Common
Stock in the Reorganization. The aggregate net asset value of your
investment will not change. (10 MuniVest New Jersey Fund, Inc. shares x $6
= $60; 5 MuniYield New Jersey Fund, Inc. shares x $12 = $60).
Q. I CURRENTLY HOLD AUCTION MARKET PREFERRED STOCK OF ONE OF THE FUNDS. AFTER
THE REORGANIZATION, WHAT WILL I HOLD?
A. If prior to the After the Reorganization
Reorganization you hold: you will hold:
MuniYield New Jersey Fund, Inc.: MuniYield New Jersey Fund, Inc.:
Series A AMPS Series A AMPS
MuniVest New Jersey Fund, Inc.:
Series A AMPS Series B AMPS
You will receive shares of MuniYield New Jersey Fund, Inc. AMPS with the
same aggregate liquidation preference as the shares of AMPS of MuniVest New
Jersey Fund, Inc. you currently hold. Since all of the AMPS have a $25,000
liquidation preference the holders of AMPS of MuniVest New Jersey Fund,
Inc. will receive one share of AMPS of MuniYield New Jersey Fund, Inc. for
each share of AMPS they currently hold. The auction and dividend payment
dates for the AMPS you receive may be different from the auction and
dividend payment dates of the AMPS you currently hold. The first dividend
period following the Reorganization will be a special dividend period,
which may be either longer or shorter than your Fund's regular dividend
period. However, this will not adversely effect the value of your
investment.
Q. SHOULD I SEND IN MY STOCK CERTIFICATES NOW?
A. No. After the Reorganization is approved by each Fund's stockholders and is
completed, we will send holders of Common Stock of MuniVest New Jersey
Fund, Inc. written instructions for exchanging their stock certificates.
Since holders of Auction Market
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Preferred Stock do not hold stock certificates, all exchanges of Auction
Market Preferred Stock will be accomplished by book entry. Stockholders of
MuniYield New Jersey Fund, Inc. will keep their stock certificates.
Q. WHAT ARE THE TAX CONSEQUENCES FOR ME AND OTHER STOCKHOLDERS?
A. The Reorganization is structured as a tax-free transaction so that the
consummation of the Reorganization itself will not result in Federal income
tax liability for stockholders of any Fund, except that Common Stockholders
may incur taxes on any cash received for a fractional share of Common
Stock. The Funds have applied for a private letter ruling from the Internal
Revenue Service on the tax-free treatment of the Reorganization.
Q. WHO WILL MANAGE MUNIYIELD NEW JERSEY FUND, INC. AFTER THE REORGANIZATION?
A. Fund Asset Management, L.P. serves as the manager for the Funds and after
the Reorganization will be the manager of MuniYield New Jersey Fund, Inc.
Theodore R. Jaekel currently serves as the portfolio manager of both Funds
and will be the portfolio manager of MuniYield New Jersey Fund, Inc. after
the Reorganization.
Q. WHAT WILL THE NAME OF THE COMBINED FUND BE AFTER THE REORGANIZATION?
A. If the Reorganization is approved by each Fund's stockholders, the combined
fund's name will be MuniYield New Jersey Fund, Inc.
Q. WHERE AND WHEN DO I VOTE?
A. A stockholders' meeting for each Fund is scheduled for December 15, 1999,
at 800 Scudders Mill Road, Plainsboro, New Jersey at the time specified
below for your Fund:
Fund Time
MuniVest New Jersey Fund, Inc. 2:30 p.m.
MuniYield New Jersey Fund, Inc. 3:30 p.m.
Q. WHY IS MY VOTE IMPORTANT?
A. For a quorum to be present at the Stockholders' Meeting, a majority of the
outstanding shares of each class of the Fund's shares must be represented
either in person or by proxy. Approval of the Reorganization requires the
affirmative vote of Fund stockholders representing a majority of the
outstanding shares of Common Stock and AMPS, voting together as a single
class, and a majority of the outstanding AMPS voting together as a separate
class. The Board of Directors urges every stockholder to vote. Please read
all proxy materials thoroughly before casting your vote.
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Q. HOW CAN I VOTE?
A. You may vote by signing and returning your proxy card in the enclosed
postage-paid envelope. Or you may vote your shares on the internet at
http://www.proxyvote.com. If you cast your vote over the internet, you will
be asked for the 12-digit control number located on your proxy card. Or you
may vote using the toll-free telephone number printed on your voting
instruction form. You may also vote in person at the Stockholders' Meeting.
If you submitted a proxy by mail, by telephone or on the internet, you may
withdraw it at the Meeting and then vote in person at the Meeting or you
may submit a superseding proxy by mail, by telephone or on the internet.
Q. HAS THE FUND RETAINED A PROXY SOLICITATION FIRM?
A. Yes, the Fund has hired Shareholder Communications Corporation to assist in
the solicitation of proxies for the Meetings. While the Fund expects most
proxies to be returned by mail, it also may solicit proxies by telephone,
fax, telegraph or personal interview.
Q. WHAT IF THERE ARE NOT ENOUGH VOTES TO REACH A QUORUM BY THE SCHEDULED
MEETING DATE?
A. In order to insure that we receive enough votes, we may need to take
further action. We or our proxy solicitation firm may contact you by mail
or telephone. Therefore, we encourage stockholders to vote as soon as they
review the enclosed proxy materials to avoid additional mailings or
telephone calls. If enough shares are not represented at the Meetings for a
quorum or a quorum is present but there are not sufficient votes to approve
the proposal by the time of each Stockholder Meeting on December 15, 1999,
then one or more of the Meetings may be adjourned to permit further
solicitation of proxy votes.
Q. WHAT IS THE BOARD'S RECOMMENDATION ON THE REORGANIZATION PROPOSAL?
A. The Board of Directors of each Fund believes the Reorganization is in the
best interests of the Fund's stockholders. Your Board of Directors
encourages you to vote FOR the Reorganization.
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