Western Asset Managed Muni accepts tenders for 87.03% of preferreds

By Toni Weeks

San Luis Obispo, Calif., March 2 – Western Asset Managed Municipals Fund Inc. announced the final results of the tender offer for its series M, T, W, Th and F municipal auction-rate cumulative preferred shares.

The fund said it accepted all shares that were validly tendered and not withdrawn during the offer period, which ended Feb. 27 at 5 p.m. ET.

Specifically, the fund accepted for payment 1,871 series M, 1,717 series T, 1,710 series W, 1,466 series Th and 1,939 series F preferreds.

The amounts represent 93.55% of series M, 85.85% of series T, 85.5% of series W, 73.3% of series Th and 96.95% of series F shares.

In all, the company accepted for payment about 8,703 shares, or 87.03% of the outstanding preferreds. Settlement is expected March 4.

Any preferreds that were not tendered will remain outstanding.

The fund is offering 90% of the liquidation preference of $25,000 per preferred.

Completion of the tender offer is condition on the closing of a proposed private offering of new preferred stock with a liquidation preference at least equal to the aggregate liquidated preference of the preferreds accepted in the tender offer.

The fund said it intends to replace any leverage associated with the tendered preferreds with the new preferred stock.

As previously announced, Western Asset Intermediate Muni Fund, Western Asset Municipal Partners Fund Inc. and Western Asset Managed Municipals Fund began separate tender offers for seven series of auction-rate preferred stock on Jan. 22.

Western Asset Intermediate Muni Fund offered 90% of the liquidation preference of $25,000 per preferred, or $22,500 per preferred, for its series M municipal auction-rate cumulative preferreds.

Western Asset Municipal Partners Fund is offering 90% of the liquidation preference of $50,000 per preferred, or $45,000 per preferred, for its series M auction-rate preferreds.

In each case, holders will also receive unpaid dividends.

Western Asset Intermediate Muni announced on Feb. 27 that it accepted tenders for 94.8% of its preferreds. Western Asset Intermediate Muni Fund also announced that it completed an offering of 1,896 shares of series 1 variable-rate demand preferred stock with a liquidation preference of $25,000 per share.

Western Asset Municipal Partners Fund’s offer will end at 5 p.m. ET on March 6.

Deutsche Bank Trust Co. Americas (877 843-9767) is the information agent.

The closed-end management investment companies are based in New York. They are managed by Legg Mason Partners Fund Advisor, LLC and sub-advised by Western Asset Management Co.

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