MYI PM Michael Kalinoski Receives Phantom Award, Sells Shares

What Happened

• Michael Kalinoski, a portfolio manager at BlackRock MuniYield Quality Fund III, had derivative awards convert and was granted new phantom shares on 2026-01-30. Two prior derivative awards (63.305 and 51.337 shares) were converted (M) and the resulting 114.642 shares were promptly surrendered to the issuer at $11.16 per share for $1,279 (a cash disposition to issuer). On the same date he was granted 187.052 phantom shares (A) valued at $11.16 each, reported at $2,088. The grant is a cash‑settled phantom share award rather than an acquisition of common stock.

Key Details

• Transaction date: January 30, 2026; filing date: February 3, 2026 (timely).
• Conversions (M): 63.305 and 51.337 shares converted; aggregate 114.642 shares acquired via conversion and then disposed to issuer at $11.16 for $1,279.
• Grant (A): 187.052 phantom shares granted at $11.16 each, reported value $2,088 (cash‑settled derivative).
• Shares owned after the transactions: not specified in the Form 4 provided.
• Footnotes: Phantom shares are cash‑settled (F1). The converted amounts relate to earlier phantom awards granted Jan 31, 2023 and Jan 31, 2025 that vest in equal installments over three years (F2–F4).
• No indication the filing was late.

Context

• Phantom shares are not common stock; they represent a cash payout upon vesting. The immediate surrender/disposition to the issuer of converted shares is consistent with share withholding/cash settlement (not an open‑market sale). The material action here is the receipt of a new cash‑settled phantom award (~$2.1k); the disposition of converted shares appears routine (settlement/tax withholding) rather than an independent market sale.