Federated muni fund holders tender 64.4%, 50.4% of preferreds in offer

By Susanna Moon

Chicago, Dec. 21 - Federated Premier Municipal Income Fund accepted for payment 1,080 shares, or about 64.4%, of its series A auction market preferred shares, and Federated Premier Intermediate Municipal Income Fund accepted 737 shares, or about 50.4%, of the preferreds, according to a press release Wednesday.

The offers expired at 5 p.m. ET on Dec. 20. They were previously extended from Dec. 13 and Dec. 8. The offers began on Nov. 9 and were announced on Nov. 7.

The funds said on Dec. 13 that they were waiving the 70% minimum tender condition, according to a previous release by Pittsburgh-based investment manager Federated Investors, Inc.

As of the last update, investors had tendered about 39.1% of the Municipal Income Fund's preferreds and about 62.5% of the Intermediate Municipal Income Fund's preferreds, which was unchanged from Dec. 8.

As reported, 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.

The offer was conditioned on the private placement of new preferred shares.

The new preferreds will allow each fund to maintain its current leveraged investment strategy, Federated Investors stated in a prior release.

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

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