Federated Municipal Closed-End Fund Announces Details for Partial Auction Market Preferred Shares Redemptions
March 11 2009 - 4:25PM
PR Newswire (US)
PITTSBURGH, March 11 /PRNewswire-FirstCall/ -- Federated Investors,
Inc. (NYSE:FII), one of the nation's largest investment managers,
today announced the redemption date for a partial redemption of the
auction market preferred shares (AMPS) issued by Federated Premier
Intermediate Municipal Income Fund (FPT). The Board of Trustees for
the fund approved the redemptions, which are part of a
tender-option bond (TOB) refinancing that is expected to lower the
fund's relative cost of leverage over time, to diversify the fund's
sources of leverage and to provide liquidity to a portion of AMPS
shareholders. The fund is expected to partially redeem the AMPS in
the following manner: Cumulative Total Percentage Number Percentage
of AMPS of of Redeemed Redemp- Shares Aggregate Original since AMPS
tion to be Redemption AMPS to be August Fund Series CUSIP Date
Redeemed Amount($) Redeemed 2008 FPT Series A 31423M204 3/30/09 360
$9,000,000 15% 31% The redemption price is $25,000 per AMPS, plus
the amount of accumulated, but unpaid, dividends at the redemption
date. The fund will use the proceeds from the TOB transaction to
make the redemptions noted in the above table. The successful
closure of the TOB transaction is a condition precedent to the
redemptions. As described in a previous announcement, FPT will be
redeeming a portion of AMPS and the redemption will be on a
pro-rata basis to the fund's recordholder. For more information
about the redemption process, including how AMPS are selected for
redemption, please see the press release titled "Federated
Municipal Bond Fund Announce Tender-Option Bond Refinancing for
Preferred Shares" dated Aug. 5, 2008, which is available on the
About Us section of FederatedInvestors.com. Federated Investors,
Inc. is one of the largest investment managers in the United
States, managing $407 billion in assets as of Dec. 31, 2008. With
158 funds and various separately managed account options, Federated
provides comprehensive investment management to nearly 5,400
institutions and intermediaries including corporations, government
entities, insurance companies, foundations and endowments, banks
and broker-dealers. For more information, visit
FederatedInvestors.com. Certain statements in this press release,
such as those related to the redemption of certain AMPS, the
methodology for and timing of such redemption, the use and
successful closure of tender-option bond transactions, and the
manager's efforts relating to leverage 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 company, or industry
results, to be materially different from any future results, levels
of activity, performance or achievements expressed or implied by
such forward-looking statements. Among other risks and
uncertainties are the ability of the company to redeem AMPS, the
ability to successfully utilize and close tender-option bond
transactions, and the ability of the manager to successfully
diversify and lower the cost of leverage, and the risk factors
discussed in the company's annual and quarterly reports as filed
with the United States Securities and Exchange Commission. As a
result, no assurance can be given as to future results, levels of
activity, performance or achievements, and neither the company nor
any other person assumes responsibility for the accuracy and
completeness of such statements in the future. DATASOURCE:
Federated Investors, Inc. CONTACT: Media, Meghan McAndrew,
+1-412-288-8103, or Melissa Ryan, +1-412-288-8079; or Analysts, Ray
Hanley, +1-412-288-1920, all of Federated Investors, Inc. Web Site:
http://federatedinvestors.com/
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