DWS Municipal Income Trust (NYSE:KTF), (the "Fund") today announced it has called for redemption approximately 25% of the outstanding shares of the Fund's remarketed preferred securities ("RPS") at the redemption price per share equal to the sum of $5,000 plus accumulated but unpaid dividends.
The proceeds from the creation of tender option bonds ("TOBs") trusts will be used to redeem approximately $66.25 million of its $265 million currently outstanding RPS. TOBs are floating rate securities issued by trusts into which a fund has deposited municipal securities. These investments are expected to lower the costs of leverage for the Fund over time.
The table below lists the total number of shares, par amounts and scheduled redemption dates for the partial redemptions:
Auction Rate Preferred Shares |  | Cusip |  | Total Shares |  | Total Amount |  | Redemption Date | |
DWS Municipal Income Trust - Series A |  | 81118R109 |  | 2,700 |  | $ | 13,500,000.00 |  | October 15, 2008 |
DWS Municipal Income Trust - Series B | 81118R208 | 2,675 | $ | 13,375,000.00 | October 15, 2008 | ||||
DWS Municipal Income Trust - Series C | 81118R307 | 2,700 | $ | 13,500,000.00 | October 15, 2008 | ||||
DWS Municipal Income Trust - Series D | 81118R406 | 2,675 | $ | 13,375,000.00 | October 15, 2008 | ||||
DWS Municipal Income Trust - Series E |  | 81118R505 |  | 2,500 |  | $ | 12,500,000.00 |  | October 15, 2008 |
The aggregate redemption amount will be allocated among the various series of RPS issued by the Fund on a pro rata basis. The Depository Trust Company (DTC), the securities' holder of record, will determine how a partial series redemption will be allocated among each participant broker-dealer account. Each participant broker-dealer determines how redeemed shares are allocated among its underlying beneficial owners. The procedures used by different broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
DWS Investments continues to work diligently to identify viable alternative solutions for restructuring the remaining outstanding RPS for the Fund, as well as its other tax-exempt closed-end fund that has issued preferred shares, DWS Strategic Municipal Income Trust (NYSE:KSM).
Update on other DWS Funds with Auction Rate Preferred Shares:
Effective August 26, 2008, each of DWS RREEF Real Estate Fund, Inc. ("RREEF I") and DWS RREEF Real Estate Fund II, Inc. ("RREEF II") has entered into a secured credit facility, which will be used to facilitate the redemption of each fund's auction rate preferred shares ("ARPS"). Subject to, among other things, the satisfaction of notice and other legal requirements applicable to the redemption of the funds' ARPS, management anticipates that the full redemption of each fund's ARPS will be completed sometime in the late third/early fourth quarter of 2008. Further details on the redemption of RREEF I's and RREEF II's ARPS will be provided in a future press release and will be posted on the DWS funds web site, www.dws-investments.com.
For more information about DWS Investments closed-end funds, visit www.dws-investments.com or call (800) 349-4281.
IMPORTANT INFORMATION
Shares of common stock of closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and, once issued, shares of common stock of closed-end funds are traded in the open market generally through a stock exchange. Common shares of closed-end funds frequently trade at a discount to net asset value. The price of common shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its common shares will trade at, below, or above net asset value.
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 ability of DWS Investments and the above-mentioned funds to finalize and execute the proposed plans to restructure the funds' existing leverage; (ii) the ability of DWS Investments and the funds to finalize any documentation necessary to implement any borrowing arrangements; (iii) the need to obtain any necessary regulatory approvals; (iv) the effects of changes in market and economic conditions; (v) other legal and regulatory developments; and (vi) 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-6763-1 9/08)