Western Asset municipal funds begin tender offers for preferreds

By Angela McDaniels

Tacoma, Wash., Jan. 22 – Western Asset Intermediate Muni Fund Inc., Western Asset Municipal Partners Fund Inc. and Western Asset Managed Municipals Fund Inc. began tender offers for seven series of auction-rate preferred stock, according to separate news release.

Western Asset Intermediate Muni Fund is offering 90% of the liquidation preference of $25,000 per preferred, or $22,500 per preferred, for its series M municipal auction-rate cumulative preferreds.

Western Asset Municipal Partners Fund is offering 90% of the liquidation preference of $50,000 per preferred, or $45,000 per preferred, for its series M auction-rate preferreds.

Western Asset Managed Municipals Fund is offering 90% of the liquidation preference of $25,000 per preferred, or $22,500 per preferred, for its series M, series T, series W, series TH and series F municipal auction-rate cumulative preferreds.

In each case, holders will also receive unpaid dividends.

Western Asset Intermediate Muni Fund’s offer will end at 5 p.m. ET on Feb. 20, Western Asset Managed Municipals Fund’s offer will end at 5 p.m. ET on Feb. 27, and Western Asset Municipal Partners Fund’s offer will end at 5 p.m. ET on March 6, according to Schedule TO filings with the Securities and Exchange Commission.

Each fund’s tender offer is conditioned on the closing of the proposed private offering of new preferred stock with an aggregate liquidation preference at least equal to the aggregate liquidation preference of preferreds accepted in the offer.

The funds currently intend to replace any leverage associated with the tendered preferreds with the new preferreds.

Deutsche Bank Trust Co. Americas (877 843-9767) is the information agent.

The closed-end management investment companies are based in New York. They are managed by Legg Mason Partners Fund Advisor, LLC and sub-advised by Western Asset Management Co.

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