PITTSBURGH, Oct. 18, 2019 /PRNewswire/ -- Federated Premier
Municipal Income Fund (NYSE: FMN) announced the expiration and
results for its voluntary tender offer for up to 100% of its
outstanding auction market preferred shares (AMPS). The tender
offer expired on Oct. 17, 2019, at
5 p.m. Eastern time.
FMN has accepted for payment 1,275 AMPS, which represents
approximately 96% of its outstanding AMPS.
The terms of the AMPS that were not tendered will remain the
same and auctions will continue for those AMPS. Shareholders who
have questions about the tender offer should contact their
financial advisor or call Deutsche Bank Trust Company Americas, the
information agent for the fund's tender offer, toll free at
877-843-9767.
The fund offered to purchase its outstanding AMPS at a price per
share equal to 99% of the AMPS' per share liquidation preference of
$25,000 ($24,750 per share) plus any unpaid dividends
accrued through the expiration date of the tender offer. The fund
will purchase the AMPS that it has accepted for payment as promptly
as practicable.
The fund also announced that it has redeemed its Variable Rate
Municipal Term Preferred Shares, Series 2014 (Old VMTP Shares), and
has issued 2,272 Variable Rate Municipal Term Preferred Shares,
Series 2019 (New VMTP Shares), totaling $113.6 million in a private offering.
The fund will use the proceeds from the issuance of its New VMTP
Shares to pay for the AMPS it accepted through its AMPS tender
offer and for the redemption of the Old VMTP Shares.
The New VMTP Shares are a floating-rate form of preferred
shares, with dividends that are set weekly to a fixed spread
against the Securities Industry and Financial Markets Association
Municipal Swap Index. The New VMTP Shares have a mandatory
term redemption date of Oct. 18,
2049, as well as potential early term redemption dates,
including on each third anniversary of their issuance (which may
result in a mandatory redemption of the New VMTP Shares, under
certain circumstances). The New VMTP Shares represent
preferred shares and rank on parity with AMPS that remain
outstanding after the fund's tender offer. The New VMTP
Shares are senior in priority to the fund's outstanding common
shares as to payments of dividends. As a result of the AMPS
tender offer and corresponding New VMTP Share issuance, the fund's
leverage amount remains largely unchanged and the fund maintains
its current leveraged strategy.
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Federated Investors, Inc. (NYSE: FII) is a leading global
investment manager with $502.2
billion in assets under management as of June 30, 2019. Our investment solutions
span 130 equity, fixed-income, alternative/private markets,
multi-asset and liquidity management strategies and a range of
separately managed account strategies. Providing comprehensive
investment management to more than 10,000 institutions and
intermediaries, our clients include corporations, government
entities, insurance companies, foundations and endowments, banks
and broker/dealers. Headquartered in Pittsburgh, Federated's more than 1,900
employees include those in New
York, Boston, London and several other offices worldwide. In
2018, Federated acquired a majority interest in Hermes Investment
Management, which provides world-class active management and
stewardship services. 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, the fund nor any other person assumes
responsibility for the accuracy and completeness of such statements
in the future.
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SOURCE Federated Investors, Inc.