Nuveen Closed-End Funds Contemplating New Preferred Share Actions
Each of Nuveen California Quality Municipal Income Fund (NYSE: NAC), Nuveen Municipal Credit Income Fund (NYSE: NZF), Nuveen California AMT-Free Quality Municipal Income Fund (NYSE: NKX), and Nuveen AMT-Free Quality Municipal Income Fund (NYSE: NEA), as part of an ongoing leverage management process, is contemplating, and has received Board approval for, certain actions related to one or more of each fund’s existing series of Variable Rate Demand Preferred (VRDP) Shares and Institutional MuniFund Term Preferred (iMTP) Shares, as applicable, as described below.
|Common||Preferred||Preferred||Amount||Number of||Contemplated Action|
|NAC||VRDP||8||160,000,000||1,600||Designation of Special Rate Period|
|NZF||VRDP||1||268,800,000||2,688||Designation of Special Rate Period|
|NZF||VRDP||2||262,200,000||2,622||Designation of Special Rate Period|
|NKX||VRDP||5||104,400,000||1,044||Redemption and new preferred issuance|
|NKX||iMTP||2018||36,000,000||720||Redemption and new preferred issuance|
|NEA||VRDP||5||100,000,000||1,000||Designation of Minimum Rate Periods|
The contemplated transition of each of the Series 8 VRDP shares of Nuveen California Quality Municipal Income Fund (NAC) and the Series 1 VRDP shares and Series 2 VRDP shares of Nuveen Municipal Credit Income Fund (NZF) from minimum (7-day) rate periods to a special rate period of longer than 7 days will be conducted through a mandatory remarketing of the VRDP shares from existing institutional holders through a remarketing agent to other institutional purchasers. During the special rate period, the VRDP shares will not be remarketed by a remarketing agent or supported by a liquidity provider.
Nuveen California AMT-Free Quality Municipal Income Fund (NKX) contemplates fully redeeming the fund’s outstanding Series 5 VRDP shares and Series 2018 iMTP shares with the proceeds of newly issued MuniFund Preferred (MFP) shares in a Variable Rate Remarketed Mode.
Nuveen AMT-Free Quality Municipal Income Fund (NEA) is contemplating a transition of the fund’s Series 5 VRDP shares from a special rate period of longer than 7 days to minimum (7-day) rate periods. The transition will be conducted through a remarketing of the VRDP shares from the existing institutional holder through a remarketing agent to institutional purchasers. During the minimum rate periods, the VRDP shares will be remarketed by a remarketing agent, be subject to optional or mandatory tender events, and will be supported by a liquidity provider.
To the extent each applicable fund elects to proceed with the contemplated VRDP transitions described above, it will provide existing holders of the applicable VRDP shares with advance notice of the mandatory remarketings in accordance with the governing documents of the VRDP shares. Existing holders of VRDP and iMTP shares of Nuveen California AMT-Free Quality Municipal Income Fund (NKX) will be provided notice of the redemption of those shares in accordance with the governing documents of those shares. The contemplated actions currently are expected to take place during the fourth quarter of 2017; however, the timing and completion of the contemplated actions by each fund are subject to market conditions, as well as to reaching final agreement with purchasers, and, for Nuveen AMT-Free Quality Municipal Income Fund (NEA), a liquidity provider, and satisfaction of customary closing conditions.
No preferred shares have been registered, or are expected to be registered, under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, preferred shares may not 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.
Nuveen offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. As the investment management arm of TIAA, Nuveen has $929 billion in assets under management as of 6/30/17 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.
FORWARD LOOKING STATEMENTS
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:
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, 254-644-1615