Four Nuveen Municipal Bond Closed-End Funds Complete VMTP Transactions
December 10 2013 - 4:00PM
Business Wire
Nuveen Investments, a leading global provider of investment
services to institutions as well as individual investors, today
announced that three funds have issued Variable Rate MuniFund Term
Preferred Shares (VMTP) through private placements with qualified
institutional buyers, as defined pursuant to Rule 144A under the
Securities Act of 1933. The fourth fund entered into a privately
negotiated exchange transaction of an existing VMTP series along
with the issuance of incremental shares with a qualified
institutional buyer as defined pursuant to Rule 144A under the
Securities Act of 1933. The proceeds of the issuance for all four
funds will be used to redeem all of the outstanding MuniFund Term
Preferred (MTP) and non-exchanged VMTP shares as previously
announced.
New VMTP issuance details are as follow:
VMTP Issuance Fund
Ticker Shares Amount ($mm)
Term Redemption Date Nuveen Arizona Premium Income
Municipal Fund NAZ 790 $79.00 December
30, 2016 Nuveen Michigan Quality Income Municipal Fund NUM
1,590 $159.00* December 30, 2016 Nuveen
AMT-Free Municipal Income Fund NEA 1,510
$151.00 December 30, 2016 Nuveen Dividend Advantage
Municipal Fund NAD 2,650 $265.00
December 30, 2016
* 879 ($87.9mm) VMTP shares completed
through a privately negotiated exchange transaction
VMTP dividends will be set weekly at a fixed spread to the
Securities Industry and Financial Markets Association Municipal
Swap Index (SIFMA). VMTP shares are preferred securities of the
fund and are senior, with priority in all respects, to the fund’s
common shares in liquidation and as to payments of dividends.
The proceeds of the VMTP issuance were deposited in trust with
an affiliate of Computershare, Inc., the Redemption and Paying
Agent for the MTP and VMTP shares. This deposit will be held for
the benefit of MTP and non-exchanged VMTP shareholders, as
applicable. MTP shares will be redeemed on December 20, 2013 and
non-exchanged VMTP shares will be redeemed on January 6, 2014.
Official notification of the redemption will be delivered to MTP
and VMTP shareholders through The Depository Trust Company (DTC).
Upon redemption the MTP shares, the funds intend to deregister and
delist the MTP shares from the New York Stock Exchange.
No VMTP shares have been registered under the Securities Act of
1933 (the Securities Act) or any state securities laws. Unless so
registered, no VMTP shares may 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 Investments provides high-quality investment services
designed to help secure the long-term goals of institutional and
individual investors as well as the consultants and financial
advisors who serve them. Nuveen Investments markets a wide range of
specialized investment solutions which provide investors access to
capabilities of its high-quality boutique investment
affiliates—Nuveen Asset Management, LLC, Symphony Asset Management
LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset
Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital
Management, LLC and Gresham Investment Management LLC, all of which
are registered investment advisers and subsidiaries of Nuveen
Investments, Inc. Funds distributed by Nuveen Securities, LLC., a
subsidiary of Nuveen Investments, Inc. In total, Nuveen Investments
managed nearly $215 billion as of September 30, 2013. For more
information, please visit the Nuveen Investments website at
www.nuveen.com.
Nuveen InvestmentsMedia Contact:Kristyna Munoz, (312)
917-8343kristyna.munoz@nuveen.com
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