Western Asset Intermediate Muni accepts tenders for 94.8% of preferreds

By Jennifer Chiou

New York, Feb. 25 – Western Asset Intermediate Muni Fund Inc. announced the final results of the tender offer for its series M municipal auction-rate cumulative preferreds. It has accepted for payment 1,896 auction-rate preferred shares, which represents 94.8% of the outstanding preferreds.

The tender offer ended at 5 p.m. ET on Feb. 20. The settlement date was Feb. 25.

As previously announced, Western Asset Intermediate Muni Fund, Western Asset Municipal Partners Fund Inc. and Western Asset Managed Municipals Fund Inc. began separate tender offers for seven series of auction-rate preferred stock on Jan. 22.

Western Asset Intermediate Muni Fund offered 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.

And 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 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.

Western Asset Intermediate Muni Fund also announced that it has completed an offering of 1,896 shares of series 1 variable-rate demand preferred stock with a liquidation preference of $25,000 per share.

Net proceeds from the offering have been used to repurchase the ARPS accepted in the first tender offer.

As reported, 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 intend to replace any leverage associated with the tendered preferreds with the new preferreds.

Deutsche Bank Trust Co. Americas (877 843-9767) was 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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