Putnam municipal funds plan tender offers for auction-rate preferreds

By Marisa Wong

Morgantown, W.Va., May 25 – Putnam Investments announced that Putnam Managed Municipal Income Trust and Putnam Municipal Opportunities Trust plan to launch tender offers for their outstanding auction-rate preferred shares.

Each fund plans to purchase up to 100% of its outstanding preferred shares for cash at a price equal to 89.75% of the liquidation preference of each series of auction-rate preferreds.

Each tender offer is subject to final approval by the respective fund’s board of trustees and some other conditions.

Putnam said the tender offers are expected to be conducted in the third quarter of 2017.

The municipal closed-end funds expect to seek alternative financing to replace any auction-rate preferred that are tendered.

Putnam is a money management firm based in Boston.

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