3-2-18 4:15 PM EST | Email Article

Nuveen Fund Board Approves Closed-End Fund Merger

The Board of Trustees of Nuveen Build America Bond Fund (NYSE: NBB) and Nuveen Build America Bond Opportunity Fund (NYSE: NBD) have approved a proposal to merge NBD into NBB (the “Merger”). As part of the proposal, the Board also approved the elimination of NBB’s contingent term policy. Both of these changes require shareholder approval. If each fund obtains the necessary shareholder approvals at its annual shareholder meeting to be held later this year, shareholders of the combined fund who do not wish to maintain their investment in the combined fund will be given an opportunity following completion of the Merger to sell a portion of their investment in the combined fund at net asset value, less a small repurchase fee.

In addition, the Board approved the expansion of NBB’s investment policy of investing at least 80% of its Managed Assets in Build America Bonds (“BABs”) to investing at least 80% of its Managed Assets in all types of taxable municipal securities, including BABs. NBB would at the same time change its name to Nuveen Taxable Municipal Income Fund.

The proposal is intended to benefit shareholders in a number of ways, including continued ownership through the combined fund of scarce Build America Bonds with above-market purchase yields, the potential for meaningfully higher common net earnings and avoidance of sizeable capital gain distributions that would result upon termination of the funds.

More information on the proposal will be contained in proxy materials expected to be filed in the near future.

About Nuveen

Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $970 billion in assets under management as of 12/31/17 and operations in 16 countries. Its affiliates offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

The information contained on the Nuveen website is not a part of this press release.

Nuveen Securities, LLC, member FINRA and SIPC.

The funds expect to file solicitation materials in the form of a joint proxy statement/prospectus that will be included in a registration statement on Form N-14 in connection with the proposed reorganization and elimination of NBB’s fundamental policy. Investors are urged to read the joint proxy statement/prospectus and any other relevant documents when they become available because they will contain important information about the proposals. After they are filed, free copies of the joint proxy statement/prospectus will be available on the SEC’s web site at www.sec.gov.

This communication is not a solicitation of a proxy from any fund shareholder. The funds, Nuveen Fund Advisors, LLC, the funds’ investment adviser, and certain of their respective directors/trustees, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from shareholders in connection with the proposals. Information about the directors/trustees and officers of the funds may be found in their respective annual reports and annual proxy statements previously filed with the SEC and will be contained in the joint proxy statement/prospectus when available.


Certain statements made or referenced in this release may be 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.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.


Kristyna Munoz

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