Federated muni funds extend tenders for auction market preferreds

By Susanna Moon

Chicago, Dec. 9 - Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund extended the tender offer for their outstanding series A auction market preferred shares.

The offers will expire at 5 p.m. ET on Dec. 13, pushed back from 5 p.m. ET on Dec. 8. The offers began on Nov. 9 and were announced on Nov. 7.

As of Dec. 8, about 39.1% of the Municipal Income Fund's preferreds had been tendered and about 62.4% of the Intermediate Municipal Income Fund's preferreds had been tendered, according to a press release by 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 preferred shares.

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 No. 1).

Federated Investors is an investment manager based in Pittsburgh.

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