Federated muni income funds to tender for auction market preferreds

By Susanna Moon

Chicago, Nov. 7 - Federated Premier Municipal Income fund and Federated Premier Intermediate Municipal Income fund plan to hold voluntary tender offers for their outstanding auction market preferred shares.

The tender offer price will be 96% of the per-share liquidation preference of $25,000, or $24,000, plus accrued dividends through the offer expiration date.

Each tender offer will be conditioned on a minimum tender of 70% of outstanding preferreds and the private placement of new preferred shares.

The new preferreds will allow each fund to maintain its current leveraged investment strategy, the release noted.

The investment adviser and the boards believe that the tender offer is in the best interests of the fund and its shareholders, according to a press release by Federated Investors, Inc., a Pittsburgh-based investment manager.

Federated Investors said it expects to announce more details about the offers "as soon as practicable."

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