Dreyfus Municipal Income board OKs redemption of 25% more ARPS

By Jennifer Chiou

New York, Feb. 21 - Dreyfus Municipal Income, Inc. announced that its board of directors authorized the redemption of up to an additional 25% of the fund's original outstanding amount of auction-rate preferred stock.

According to a press release, it is anticipated that the leverage provided by the ARPS will be replaced through the creation of tender option bonds.

Dreyfus said that the redemptions may occur within a roughly one-year window, but will depend on market, regulatory and other factors.

In November 2009, the board authorized an initial redemption of up to 25% of the then-outstanding ARPS and subsequently redeemed that amount in stages.

The release noted that Dreyfus Strategic Municipals, Inc. and Dreyfus Strategic Municipal Bond Fund, Inc. announced a similar authorization on Feb. 11.

The non-diversified closed-end management investment company is based in New York.

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