Federated muni funds extend offer for preferreds; 70% threshold out

By Jennifer Chiou

New York, Dec. 13 - Federated Premier Municipal Income Fund and Federated Premier Intermediate Municipal Income Fund announced that they again extended the tender offer for their series A auction market preferred shares.

The offer will now expire at 5 p.m. ET on Dec. 20. The prior deadlines were Dec. 13 and Dec. 8. The offers began on Nov. 9 and were announced on Nov. 7.

The funds also announced that they are waiving the 70% minimum tender condition, according to a press release from Federated Investors, Inc.

As of Dec. 13, about 39.1% of the Municipal Income Fund's preferreds had been tendered and about 62.5% of the Intermediate Municipal Income Fund's preferreds had been tendered, 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 is 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, option No. 1).

Federated Investors is an investment manager based in Pittsburgh.

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