PITTSBURGH, Aug. 30,
2024 /PRNewswire/ -- Federated Hermes Premier
Municipal Income Fund (NYSE: FMN) today announced that (subject to
certain conditions) it will commence a cash tender offer for up to
32% of its outstanding common shares. The tender offer will provide
all shareholders the opportunity to tender some or all of their
common shares at a price per common share of 99% of the fund's net
asset value (NAV) per share as determined on the day the tender
offer expires or the preceding business day. The fund anticipates
the tender offer will commence Sept. 13,
2024, and end Oct. 11,
2024.
Should the number of common shares properly tendered, and not
withdrawn, exceed 32% of the fund's outstanding common shares, the
fund will purchase common shares from tendering common shareholders
on a pro rata basis (with any adjustments needed to avoid
fractional common shares). Accordingly, common shareholders cannot
be assured that the fund will purchase all their tendered common
shares. Additional terms and conditions of the fund's tender offer
will be set forth in its offering materials, which will be
distributed to its common shareholders.
Those common shareholders who choose to tender their shares can
potentially receive a better share price than they might receive in
the market. Common shareholders who choose not to tender their
shares will benefit from the anticipated accretive impact on the
NAV of the common shares due to the tender price being below NAV.
The fund also will continue to operate as an exchange-listed
closed-end fund—providing long-term shareholders the ability to
pursue AMT-free tax-exempt income within a leveraged structure,
with the opportunity for enhanced returns.
Absent an unknown material event occurring, the fund's
investment advisor does not anticipate that the tender offer will
affect the fund's ability to continue to maintain its total annual
fund operating expenses at no greater than 0.99%, consistent with
the Expense Limitation note to the fund's audited financial
statements included in the fund's Annual Shareholder Report dated
Nov. 30, 2023.
The fund's investment advisor recommended the tender offer in
connection with entering into an agreement with Saba Capital
Management, L.P. ("Saba"). During the effective period of the
agreement, Saba has agreed to comply with certain standstill
covenants and vote its shares in accordance with the
recommendations of the fund's Board of Trustees.
Tender Offer Statement
The fund has not commenced the tender offer described in this
press release. This is not a recommendation, an offer to purchase
or a solicitation of an offer to sell common shares of the fund and
the above statements are not intended to constitute an offer to
participate in any tender offer. Information about the tender
offer, including its commencement, will be provided by future
public announcements. Shareholders will be notified in accordance
with the requirements of the Securities Exchange Act of 1934, as
amended, and the Investment Company Act of 1940, as amended, either
by publication or mailing or both. The tender offer will be made
only by an offer to purchase, a related letter of transmittal, and
other documents to be filed with the SEC. Shareholders of the fund
should read the offer to purchase and tender offer statement and
related exhibits when those documents are filed and become
available, as they will contain important information about the
tender offer. These and other filed documents will be available to
investors for free both at the website of the SEC and from the
fund.
Investors can view additional portfolio fund and portfolio
information in the Products section of FederatedHermes.com/us.
Federated Hermes, Inc. (NYSE: FHI) is a global leader in active,
responsible investment management, with $782.7 billion in assets under management, as of
June 30, 2024. We deliver investment
solutions that help investors target a broad range of outcomes and
provide equity, fixed-income, alternative/private markets,
multi-asset and liquidity management strategies to more than 10,000
institutions and intermediaries worldwide. Our clients include
corporations, government entities, insurance companies, foundations
and endowments, banks and broker/dealers. Headquartered in
Pittsburgh, Federated Hermes has
more than 2,000 employees in London, New
York, Boston and offices
worldwide. For more information,
visit FederatedHermes.com/us.
# # #
Certain statements in this press release, such as those related
to expenses, the commencement and expiration of the tender offer,
performance, investment objectives and strategies, and investor
preferences and demand, constitute or may constitute
forward-looking statements, which involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
levels of activity, performance or achievements of the fund to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements. Any forward-looking statement, and any
level of business activity and financial results, are inherently
subject to significant business, market, economic, competitive,
regulatory and other risks and uncertainties, many of which are
difficult to predict and beyond the fund's or its investment
adviser's control. Risks and uncertainties could vary significantly
depending on various factors, such as market conditions, investment
performance and investor behavior. Other risks and uncertainties
include the risk factors discussed in the fund's annual and
semi-annual shareholder reports as filed with the Securities and
Exchange Commission. As a result, no assurance can be given as to
future results, levels of activity, performance or achievements,
and none of the fund, its investment adviser, or any other person
assumes responsibility for the accuracy and completeness, or
updating, of such statements in the future.
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SOURCE Federated Premier Municipal Income Fund