Federated muni funds begin tender offers for auction market preferreds

By Angela McDaniels

Tacoma, Wash., Nov. 9 - Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund each began a tender offer for its outstanding series A auction market preferred shares, according to a news release from Federated Investors, Inc.

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

Each tender offer is conditioned on 70% of that fund's preferreds being tendered and the private placement of new preferreds shares.

The offers will expire at 5 p.m. ET on Dec. 8.

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

The information agent is Deutsche Bank Trust Co. Americas (800 735-7777, option #1).

Federated Investors is an investment manager based in Pittsburgh. It announced plans for the offers on Nov. 7.

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