By Business Wire, February 21, 2013, 11:48:00 AM EDT
Dreyfus Municipal Income, Inc. Board Authorizes the Use of Tender Option Bonds In Connection with Any Additional Partial Redemption of Its Auction Rate Preferred Stock (NYX:DMF)
NEW YORK--(BUSINESS WIRE)--
On Thursday, February 21, 2013, the Board of Directors of Dreyfus
Municipal Income, Inc. (NYX:DMF) today authorized the Fund to redeem up
to an additional 25 percent of the Fund's original amount of outstanding
auction rate preferred stock ("ARPS"), subject to market, regulatory and
other conditions and factors. It is currently anticipated that, upon
redemption, the leverage provided by the ARPS would be replaced through
the creation of tender option bonds ("TOBs"). The timing and amount for
such redemptions and refinancing of the ARPS could occur within
approximately a12-month period, but will be determined by the
availability of acceptable terms on the TOBs, market, regulatory and
other factors, and Fund management is not certain when, or if, such
amount will be redeemed and refinanced. Before any such redemption of
the ARPS, the Fund would issue a notice containing specific details
regarding the redemption, which would include a press release
that also would be placed on the Dreyfus website.
The ability of the Fund to utilize TOBs is based, in part, on the
eligibility of its underlying municipal bonds for TOB programs. The
extent to which the Fund is able to use TOBs to redeem ARPS depends on
market conditions, the Fund's portfolio composition, the cost of
liquidity and the willingness of liquidity providers to support TOBs,
among other factors. The TOB structure is less permanent than ARPS since
TOBs may be unwound upon the occurrence of certain events, such as a
failed remarketing of the TOB securities, and there is no certainty that
TOB financing will be available in the future.
In November 2009, the Board authorized an initial redemption of up to 25
percent of the Fund's then-outstanding ARPS, subject to market,
regulatory, timing and other conditions and factors. The Fund
subsequently redeemed that amount of ARPS in stages and the leverage
provided by the redeemed ARPS was replaced through the creation of TOBs.
Each of Dreyfus Strategic Municipals, Inc. (NYSE:LEO) and Dreyfus
Strategic Municipal Bond Fund, Inc. (NYSE:DSM) announced a similar
authorization with respect to ARPS on February 11, 2013.
Additional information relating to this matter can be accessed at http://www.dreyfus.com/ars.
This press release is published solely for informational purposes and
is not to be construes as specific tax, legal or investment advice.Nor
is this document intended as a solicitation or an offer to buy or sell
securities or related financial instruments.The release should
not be regarded by recipients as a substitute for exercise of their own
judgment.Statements made in this release are based on current
market conditions.Different market conditions and assumptions
could have materially different results.Neither Dreyfus, the
Fund nor any of their affiliates, directors, employees or agents accept
any liability for any loss or damage arising out of the use of all or
any part of this release.
Certain statements contained in this release may be forward-looking
in nature.Such statements represent current beliefs, based on
information available at the time the statements are made, with regard
to matters addressed.Actual future occurrences may differ
significantly from those anticipated in any forward-looking statements
due to numerous factors.These include, but are not limited to,
those noted above, and other additional risks and uncertainties.The
Fund, Dreyfus and any of their affiliates, directors, employees or
agents undertake no responsibility to update publicly or revise any
Source: Dreyfus Municipal Income, Inc.