Dreyfus municipal funds begin tenders for auction-rate preferreds

By Susanna Moon

Chicago, Jan. 23 – Dreyfus Corp. said three municipal bond closed-end funds began tender offers to purchase outstanding auction-rate preferred stock.

The tender offers will remain open until Feb. 28. The offers were announced Nov. 28.

The tender offers have been authorized by the board of directors of each of the following funds: Dreyfus Strategic Municipals, Inc., series M, T, W, TH and F; Dreyfus Strategic Municipal Bond Fund, Inc., series A, B and C; and Dreyfus Municipal Income, Inc., series A and B, according to a company announcement.

The purchase price will be $23,750 per share, or 95% of the $25,000 liquidation preference, plus accrued dividends through the expiration date of the tender.

“It is currently anticipated that the leverage provided by any tendered [auction-rate preferreds] would be replaced through the creation of tender option bonds,” according to the original announcement.

Each of the tender offers is contingent upon the creation of the tender option bonds, the company had added.

AST Fund Solutions LLC is the information agent (877 478-5047).

Dreyfus Corp. is a New York-based asset management and distribution company and wholly owned subsidiary of Bank of New York Mellon Corp.

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