NEW YORK--()--DWS Municipal Income Trust (NYSE: KTF) and DWS Strategic Municipal Income Trust (NYSE: KSM) (each, a “Fund,” and together, the “Funds”) each announced that all conditions to the closing of its tender offer for up to 100% of its outstanding original preferred shares have been satisfied. Each tender offer expired at 5:00 p.m. New York City time on November 16, 2012. KTF has accepted for payment a total of 37,773 of its remarketed preferred shares (approximately 95.0% of its outstanding remarketed preferred shares), and KSM has accepted for payment a total of 2,419 of its auction rate preferred shares (approximately 86.4% of its outstanding auction rate preferred shares). The original preferred shares of each Fund that were not tendered remain outstanding.
Each Fund also announced that it has successfully issued floating rate municipal term preferred shares (“MTPS”) in a private offering. KTF has issued 37,773 shares of MTPS totaling $188,865,000, and KSM has issued 2,419 shares of MTPS totaling $60,475,000. Each Fund used the proceeds from its MPTS offering to pay for the preferred shares that it accepted in its tender offer. KTF had offered to purchase up to 100% of its outstanding remarketed preferred shares at a price equal to 96% of the remarketed preferred shares’ per share liquidation preference of $5,000 ($4,800 per remarketed preferred share) plus any unpaid dividends accrued through the tender offer expiration date. KSM had offered to purchase up to 100% of its outstanding auction rate preferred shares at a price equal to 96% of the auction rate preferred shares’ per share liquidation preference of $25,000 ($24,000 per auction rate preferred share) plus any unpaid dividends accrued through the tender offer expiration date. As a result of its preferred share tender offer and corresponding MTPS issuance, each Fund’s leverage amount remains unchanged.
MTPS are a floating rate form of preferred shares with a mandatory-term redemption date of December 1, 2015, unless extended, and dividends that are set weekly to a fixed spread against the Securities Industry and Financial Markets Association Municipal Swap Index. Each Fund’s MTPS rank on parity with those of its original preferred shares that remain outstanding after its tender offer. MTPS are senior in priority to each Fund’s outstanding common shares as to payments of dividends.
For more information on each Fund’s recently expired tender offer, please contact the Fund’s information agent, Deutsche Bank Trust Company Americas at (800) 735-7777 (Option 1). For more information on each Fund in general, please visit www.dws-investments.com or call (800) 349-4281.
DWS Strategic Municipal Income Trust (KSM) and DWS Municipal Income Trust (KTF) are subject to investment risk. Bond investments are subject to interest-rate and credit risks. When interest rates rise, bond prices generally fall. Credit risk refers to the ability of an issuer to make timely payments of principal and interest. Investing in derivatives entails special risks relating to liquidity, leverage and credit that may reduce returns and/or increased volatility. Leverage results in additional risks and can magnify the effect of any losses. Although the Funds seek income that is federally tax-free, a portion of the Funds’ distributions may be subject to federal, state and local taxes, including the alternative minimum tax.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of Fund securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Certain statements contained in this release may be forward-looking in nature. These include all statements relating to plans, expectations, and other statements that are not historical facts and typically use words like “expect,” “anticipate,” “believe,” and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Management does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
The following factors, among others, could cause actual results to differ materially from forward-looking statements: (i) the effects of changes in market and economic conditions; (ii) legal and regulatory developments; and (iii) other additional risks and uncertainties.
NOT FDIC/ NCUA INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
DWS Investments is part of Deutsche Bank’s Asset Management division and, within the US, represents the retail asset management activities of Deutsche Bank AG, Deutsche Bank Trust Company Americas, Deutsche Investment Management Americas Inc. and DWS Trust Company. (R-29930-1 11/12)