By Toni Weeks
San Luis Obispo, Calif., June 19 – Federated Premier Municipal Income Fund (NYSE: FMN) and Federated Premier Intermediate Municipal Income Fund (NYSE: FPT) announced that each fund has issued additional variable-rate municipal term preferred shares in a private offering.
FMN issued 684 new shares totaling $17.1 million, and FPT issued 767 new shares totaling $19.2 million. The number of issued shares is now 1,421 and 1,847, respectively.
According to a press release, the new issuance replaces another form of leverage within the funds, tender option bonds, which have been sold.
The funds also announced that each fund has extended the term of its existing variable-rate municipal term preferreds for three years to June 19, 2017. The preferreds were originally scheduled to terminate Dec. 22, 2014.
Dividends are set weekly to a fixed spread against the Securities Industry and Financial Markets Association Municipal Swap index, according to a press release from Pittsburgh-based investment manager Federated Investors, Inc.
| Issuer: | Federated Premier Municipal Income Fund
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| Issue: | Variable-rate municipal term preferred shares
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| Amount: | $17.1 million
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| Shares: | 684
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| Maturity: | June 19, 2017
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| Dividend: | Set weekly to a fixed spread against the Securities Industry and Financial Markets Association Municipal Swap index
|
| Settlement date: | June 19
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| Issuer: | Federated Premier Intermediate Municipal Income Fund
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| Issue: | Variable-rate municipal term preferred shares
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| Amount: | $19.2 million
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| Shares: | 767
|
| Maturity: | June 19, 2017
|
| Dividend: | Set weekly to a fixed spread against the Securities Industry and Financial Markets Association Municipal Swap index
|
| Settlement date: | June 19
|
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