Correspondence 0001398344-25-003048 from RiverNorth Managed Duration Municipal Income Fund II, Inc. (RMMZ)
RiverNorth Managed Duration Municipal Income Fund II, Inc.
Date: Feb. 18, 2025 · CIK: 0001870833 · Accession: 0001398344-25-003048
AI Filing Summary & Sentiment
File numbers found in text: 333-281400, 811-23713
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CORRESP
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Faegre
Drinker Biddle & Reath LLP
320
South Canal Street, Suite 3300
Chicago,
IL 60606
(312)
569-1000 (Phone)
(312)
569-3000 (Facsimile)
www.faegredrinker.com
February 18, 2025
VIA
EDGAR TRANSMISSION
U.S.
Securities and Exchange Commission
100
F Street, N.E.
Washington,
D.C. 20549
Attention:
Lauren Hamilton and Lisa Larkin
Re: RiverNorth
Managed Duration Municipal Income Fund II, Inc. (the “Fund” or the “Registrant”) (File Nos. 333-281400;
811-23713); Response to Examiner Comments on N-2
Dear
Ms. Hamilton and Ms. Larkin:
This
letter responds to the staff’s comments that you provided via telephone on November 5, 2024 and November 19, 2024, in connection
with your review of the Fund’s above-referenced registration statement (“Registration Statement”) on Form N-2.
The changes to the Fund’s disclosure discussed below will be reflected in Pre-Effective Amendment No. 2 to the Fund’s
Registration Statement (the “Revised Registration Statement”).
For
your convenience, we have repeated each comment below in bold, and our responses follow your comments. Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Registration Statement, unless otherwise indicated.
ACCOUNTING
Comments
1. Please
describe the discrepancy between the asset coverage ratio with respect to tender option
bond transactions listed on page 13 of the Prospectus and such ratio listed in the Fund’s
Form N-CSR.
The
Fund respectfully notes that the asset coverage disclosed in the Fund’s Financial Highlights were inadvertently included
in the Fund’s annual report and will be removed in future shareholder reports .
2. Please
ensure that the Fund’s Form N-CSR filing is hyperlinked in all locations.
The
Fund confirms that the Form N-CSR filing will be hyperlinked in all locations in the Revised Registration Statement.
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3. With
respect to the Fee Table that is incorporated by reference to the Fund’s Form N-CSR,
please revise the first sentence of the disclosure in footnote 5, which appears to be
missing language related to TOBs.
The
Fund will revise the disclosure accordingly in the Revised Registration Statement:
“Interest
and fees on leverage in the table reflect the cost to the Fund of and TOB transactions, expressed as a percentage
of the Fund’s net assets as of June 30, 2024.”
4. The
“Use of Leverage” section of the Prospectus states the following: “With
respect to the Fund’s anticipated investments in TOB Residuals issued by a tender
option bond trust (as further discussed below under “-Tender Option Bonds”),
the Fund will treat such instruments as derivatives in compliance with Rule 18f-4 under
the 1940 Act.” Please explain why the Fund includes asset coverage ratios in the
Financial Highlights consistent with the treatment of TOB residuals as senior securities.
The
Fund confirms that the TOB transactions are treated as derivatives in compliance with Rule 18f-4 under the Investment Company
Act of 1940. The Fund notes that the asset coverage ratios with respect to floating rate obligations in the Fund’s Financial
Highlights were inadvertently included in the Fund’s annual report and will be removed in future shareholder reports.
DISCLOSURE
Comments
5. Please
add the following undertaking to the Part C of the Registration Statement or explain
why the Fund does not believe such undertaking should be included: “The Registrant
undertakes to only offer rights to purchase common and preferred shares together after
a post-effective amendment to the registration statement relating to such rights has
been declared effective.”
The
requested change will be made in the Revised Registration Statement.
We trust that the foregoing is responsive to your comments.
Questions and comments concerning this filing may be directed to the undersigned at (312) 569-1107.
Sincerely,
/s/
David L. Williams
David
L. Williams
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