PITTSBURGH,
June 20, 2017
/PRNewswire/ -- Federated Investment Management
Company, the investment advisor to Federated Premier Intermediate
Municipal Income Fund (NYSE: FPT) and Federated Premier Municipal
Income Fund (NYSE: FMN), today announced that it recommended to the
Boards of Trustees of FPT and FMN, and the Boards of Trustees
approved, that FPT reorganize into FMN, with FMN being the
surviving fund. The reorganization, which requires
shareholder approval, is expected to be a tax-free
transaction completed during the fourth quarter of
2017.
Federated Investment Management Company also has
recommended to the Board of Trustees of FPT, and the Board of
Trustees has approved, FPT conducting a tender offer for up to 20
percent of its outstanding common shares at a price equal to
98 percent of net asset value at the close of trading on the date
the tender offer expires. This tender offer would be
completed prior to the reorganization of FPT into
FMN.
The specific dates for FPT's tender offer will be
announced separately, but it is currently anticipated that the
tender offer will commence in July
2017 and end in August 2017. Additional terms and
conditions of FPT's tender offer will be set forth in its offering
materials, which will be distributed to its common
shareholders. Should the number of common shares tendered,
and not withdrawn, exceed 20 percent of FPT's outstanding common
shares, FPT will purchase common shares from tendering common
shareholders on a pro rata basis. Accordingly, common
shareholders cannot be assured that FPT will purchase all of their
tendered common shares.
Following the tender offer, if shareholders approve the
reorganization, FPT would reorganize into FMN. It is
currently anticipated that if the tender offer is completed by the
end of August 2017 that the
reorganization may be completed by the end of November 2017.
The two funds have identical investment objectives and
substantially similar investment strategies focused on tax-exempt
municipal bonds, with FPT's portfolio having an intermediate
duration that is currently shorter than the duration of FMN's
portfolio. FMN invests in long-term, tax-exempt municipal
bonds as it seeks to provide its shareholders current income
through a variety of market cycles.
Federated Investment Management Company reached an
agreement with FPT's largest shareholder to support the
reorganization of FPT pursuant to which that shareholder has
withdrawn the shareholder proposal and nominations it had
previously submitted to FPT. FPT's largest shareholder also
has agreed to certain customary standstill provisions until the
termination of the agreement.
Federated Investment Management Company believes the
tender offer and subsequent reorganization are in the best interest
of FPT and its shareholders as well as FMN and its
shareholders. The tender offer would provide some liquidity
to FPT common shareholders seeking it, and the reorganization of
FPT into FMN would provide FPT shareholders continuing to seek
tax-exempt income the option to pursue that investment strategy
through a leveraged closed-end fund. The reorganization would
afford FMN shareholders the opportunity to continue their
investment in a long duration tax-exempt municipal closed-end fund
with larger assets and attractive portfolio characteristics, such
as broader yield-curve diversity.
Federated Investors, Inc. (NYSE:
FII) is one of the largest investment managers in
the United States, managing
$361.7 billion in assets as
of March 31, 2017. With 123 funds and a variety of
separately managed account options, Federated provides
comprehensive investment management to more than 8,400 institutions
and intermediaries including corporations, government entities,
insurance companies, foundations and endowments, banks and
broker/dealers. For more information, visit
FederatedInvestors.com.
This press release is not a recommendation, an offer to
purchase or a solicitation of an offer to sell shares of FPT or
FMN. FPT has not commenced the tender offer described in this press
release. Any tender offer would be made only by an offer to
purchase, a related letter of transmittal and other documents that
would be filed with the Securities and Exchange Commission (the
SEC) as exhibits to a tender offer statement on Schedule TO and
would be available free of charge at the SEC's website at
www.sec.gov.
This press release describes a reorganization, which will
be conducted pursuant to an agreement and plan of reorganization
that will be included in a registration statement, to be filed by
FMN (Registration Statement). This Registration Statement has yet
to be filed with the SEC. After the Registration Statement is filed
with the SEC, it may be amended or withdrawn until the Registration
Statement is declared effective by the SEC. A joint proxy
statement/prospectus to be included in the Registration Statement
will not be distributed to shareholders of FPT and FMN unless and
until the Registration Statement is declared effective by the SEC.
The joint proxy statement/prospectus will contain information with
respect to the investment objectives, risks, charges and expenses
of the funds and other important information about FPT and FMN. The
joint proxy statement/prospectus will constitute neither an offer
to sell securities, nor will it constitute a solicitation of an
offer to buy securities, in any state where such offer or sale is
not permitted.
Shareholders should read (i) any offer to purchase and
tender offer statement on Schedule TO and related exhibits and (ii)
any Registration Statement and joint proxy statement/prospectus if
and when those documents are filed and become available, as they
would contain important information about the tender offer and
proposed reorganization, respectively. Investors should consider
the investment objectives, risks, charges and expenses of FPT and
FMN carefully.
Certain statements made in this press release, such as
those related to the tender offer and reorganization and the
opportunity for enhanced liquidity and shareholder value, 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, none of the investment advisor,
the fund or any other person assumes responsibility for the
accuracy and completeness of such statements in the
future.
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SOURCE Federated Investors, Inc.