Federated Municipal Closed-End Funds Announce Successful Private Placement of Preferred Shares
(PITTSBURGH, Pa., 12/22/2011 04:09 PM) — Federated Premier Municipal Income Fund (NYSE: FMN) and Federated Premier Intermediate Municipal Income Fund (NYSE: FPT) each announced it has successfully issued variable rate municipal term preferred shares (VMTP shares) in a private offering. FPT issued 1,080 VMTP shares totaling $27.0 million and FMN issued 737 VMTP shares totaling $18.4 million. Each fund will use the proceeds from its VMTP share offering to pay for the auction market preferred shares (AMPS) it accepted in its AMPS tender offer.
VMTP shares are a floating-rate form of preferred shares with a mandatory-term redemption date of Dec. 22, 2014, unless extended, and dividends that are set weekly to a fixed spread against the Securities Industry and Financial Markets Association Municipal Swap Index. For each fund, VMTP shares represent preferred shares and rank on parity with AMPS that remain outstanding after its tender offer. VMTP shares are senior in priority to each fund’s outstanding common shares as to payments of dividends. As a result of the AMPS tender offers and corresponding VMTP share issuances, each fund’s leverage amount remains largely unchanged and each fund maintains its current leveraged strategy.
Federated Investors, Inc. (NYSE: FII) is one of the largest investment managers in the United States, managing $351.7 billion in assets as of Sept. 30, 2011. With 134 funds, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 4,800 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com.
Certain statements made in this press release are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: market developments; legal and regulatory developments; and other additional risks and uncertainties. As a result, neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.