Putnam extends tender offer for auction-rate preferreds until Aug. 9

By Susanna Moon

Chicago, Aug. 7 – Putnam Investments said the tenders have been extended by Putnam Managed Municipal Income Trust and Putnam Municipal Opportunities Trust for the outstanding auction-rate preferred shares, or ARPS.

The tender offers will now continue until one minute after 11:59 p.m. ET on Aug. 9, extended from one minute after 11:59 p.m. ET on Aug. 4.

As of the close of business on Aug. 4, investors had tended 5 series A and 473 series C shares of ARPS of Putnam Managed Municipal Income Trust and 541 series B and 1,064 series C shares of ARPS of the Putnam Municipal Opportunities Trust, according to a company notice on Monday.

The company said on July 11 that the cash purchase price will be 89.75% of the liquidation preference of each outstanding series of ARPS plus accrued dividends through the expiration date.

The tender offer is contingent on a third-party commitment to provide financing.

For the Putnam Management Municipal Income Trust, the issuer may be required by the fund’s bylaws to obtain consents from holders of at least a majority of the ARPS, the release noted.

AST Fund Solutions, LLC (888 540-8736) is the information agent.

The company announced plans for the tender on May 25.

Putnam is a money management firm based in Boston.

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