DWS muni funds again extend tender offers for preferreds, citing Sandy

By Susanna Moon

Chicago, Nov. 2 - DWS Municipal Income Trust (KTF) and DWS Strategic Municipal Income Trust (KSM) again extended the tender offers for their respective outstanding preferred shares, this time due to the disruptions caused by Hurricane Sandy.

The offers will now end at 5 p.m. ET on Nov. 9, extended from 5 p.m. ET on Nov. 2.

The extension gives holders affected by the storm more time to tender their preferreds, according to a press release.

As of Nov. 1, holders had tendered 97.1% of KTF's outstanding remarketed preferred shares and 86.4% of KSM's outstanding auction-rate preferreds. As of Oct. 26, investors had tendered 94.99% of KTF's outstanding remarketed preferred shares and 86.39% of KSM's outstanding auction-rate preferreds.

The funds previously extended the offers to "provide holders of preferred shares who may still want to participate in the tender offer the opportunity to do so. There can be no guarantee that there will be future liquidity for the funds' preferred shares," according to a prior press release.

The offers began on Sept. 27 and were originally set to end on Oct. 26.

KTF is offering to purchase its outstanding remarketed preferred shares at a price equal to 96% of the preferreds' per share liquidation preference of $5,000, or $4,800 per remarketed preferred, plus any unpaid dividends accrued through the tender offer expiration date.

KSM is offering to purchase its outstanding auction-rate preferred shares at a price equal to 96% of the auction-rate preferreds' per share liquidation preference of $25,000, or $24,000 per auction-rate preferred, plus any unpaid dividends accrued through the tender offer expiration date.

KTF's tender offer is conditioned upon receiving tenders for at least 90% of its outstanding remarketed preferred shares. KSM's offer is conditioned on receiving tenders for at least 70% of its outstanding auction-rate preferreds.

In addition, each fund's tender offer is conditioned on the completion of refinancing with enough proceeds to fund the offer.

Deutsche Bank Trust Co. Americas (800 735-7777) is the information agent for the offers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.