PITTSBURGH, Dec. 19, 2016 /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 two and a half years, from June 19, 2017 to Dec. 19, 2019.  When originally issued, the VMTP shares had a three-year term scheduled to terminate on Dec. 22, 2014, which was extended in June 2014 to June 19, 2017.     

No other terms of the VMTP shares have changed, including outstanding issue amount, total leverage or any structural covenants impacting asset coverage or key rating drivers.

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 $364.3 billion in assets as of Sept. 30, 2016.  With 123 funds, as well as a variety of separately managed account options, Federated provides comprehensive investment management worldwide to approximately 8,500 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.

                                   

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/federated-municipal-closed-end-funds-announce-extension-of-preferred-shares-300381476.html

SOURCE Federated Investors, Inc.

Copyright 2016 PR Newswire

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