Deutsche municipal trusts to maintain leverage by redeeming preferreds

By Toni Weeks

San Luis Obispo, Calif., March 6 – The board of trustees of each of the Deutsche Municipal Income Trust and the Deutsche Strategic Municipal Income Trust have approved a refinancing plan that is expected to result in the outstanding leverage remaining unchanged for each fund, according to a press release.

Under the plan, Deutsche Municipal Income plans to redeem all of its currently outstanding remarketed preferred shares, and Deutsche Strategic Municipal plans to redeem all of its currently outstanding auction-rate preferred shares.

In addition, each fund plans to redeem all of its currently outstanding floating-rate municipal term preferred shares, series 2015.

All of the preferreds will be redeemed at their respective liquidation preferences per share plus additional amounts representing any dividend amounts owed.

The redemptions are subject to new financing in the form of new preferred leverage.

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