Federated fund to partially redeem auction market preferreds

By Jennifer Chiou

New York, March 11 - Federated Investors Inc. announced that it plans to partially redeem auction market preferred shares from the Federated Premier Intermediate Municipal Income Fund.

The fund plans to redeem $9 million, or 15%, of the outstanding AMPS from series A on March 30.

The board of trustees for the fund approved the redemptions, which are part of a tender-option bond refinancing that is expected to lower the fund's relative cost of leverage over time, to diversify the fund's sources of leverage and to provide liquidity to a portion of AMPS holders, according to a news release.

The redemption price is $25,000 per AMPS plus the amount of accumulated dividends at the redemption date.

The fund added that it will use the proceeds from the bond transaction to make the redemptions.

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