PITTSBURGH, June 19, 2014 /PRNewswire/ -- Federated
Premier Municipal Income Fund (NYSE: FMN) and Federated Premier
Intermediate Municipal Income Fund (NYSE: FPT) today announced that
each fund has extended the term of its existing variable rate
municipal term preferred shares (VMTP shares) for an additional
three years to June 19, 2017.
When originally issued, the VMTP shares had a three-year term
scheduled to terminate on Dec. 22,
2014.
In addition, each fund successfully issued additional VMTP
shares in a private offering. The new issuance replaces
another form of leverage within the funds, tender option bonds
(TOBs), which have been sold. FMN issued 684 new shares
totaling $17.1 million and FPT issued
767 new shares totaling $19.2
million. VMTP shares allow each fund to maintain its
current leveraged investment strategy with leverage amounts
remaining largely unchanged. The total number of VMTP shares
in the funds has increased to 1,421 in FMN and 1,847 in FPT.
VMTP shares are a floating-rate form of preferred shares with a
mandatory-term redemption date, unless extended, and dividends that
are set weekly to a fixed spread against the Securities Industry
and Financial Markets Association Municipal Swap Index. VMTP
shares are senior in priority to each fund's outstanding common
shares as to payments of dividends.
Federated Investors, Inc. (NYSE: FII) is one of the largest
investment managers in the United
States, managing $366.2
billion in assets as of March
31, 2014. With 134 funds, as well as a variety of
separately managed account options, Federated provides
comprehensive investment management worldwide to approximately
6,100 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.
No VMTP shares have been registered under the Securities Act or
any state securities laws. Unless so registered, no VMTP
shares may be offered or sold in the
United States except pursuant to an exemption from the
registration requirements of the Securities Act and applicable
state securities laws. This press release is neither an offer
to sell nor a solicitation of an offer to buy any of these
securities.
SOURCE Federated Investors, Inc.