Nuveen Closed-End Funds Provide Preferred Share Update
May 25 2018 - 4:05PM
Business Wire
Nuveen California Quality Municipal Income Fund (NYSE: NAC) and
Nuveen AMT-Free Municipal Credit Income Fund (NYSE: NVG), as part
of an ongoing leverage management process, have received Board
approval for certain actions related to one of each Fund’s existing
series of Variable Rate Demand Preferred (VRDP) Shares, as
described below. If executed, which may or may not occur, the
transactions will not involve any change in the amount of either
fund’s preferred shares outstanding.
Common Preferred
Preferred Preferred
Amount Number of
Contemplated Action Share Type Series
CUSIP Outstanding Preferred Ticker
Shares
NAC VRDP 5
67066Y873 158,900,000 1,589
Designation of Special
Rate Period
NVG VRDP 4 67071L866
180,000,000 1,800
Designation of Minimum
Rate Periods
The transition, if executed, of the Series 5 VRDP shares of
Nuveen California Quality Municipal Income Fund (NAC) from minimum
(7-day) rate periods to a special rate period of longer than seven
days would 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 would not be remarketed by a remarketing
agent or supported by a liquidity provider.
Nuveen AMT-Free Municipal Credit Income Fund (NVG) is planning a
transition of the Fund’s Series 4 VRDP shares from a special rate
period of longer than seven days to minimum (7-day) rate periods.
The transition would 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 would 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
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. If executed, the proposed actions are currently expected to
take place during the second quarter of 2018. However, the timing
and completion of the actions described above are subject to market
conditions as well as subject to reaching final agreement with
purchasers, and, for Nuveen AMT-Free Municipal Credit Income Fund
(NVG), a liquidity provider and satisfaction of customary closing
conditions.
No VRDP 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, VRDP 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.
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 $967 billion in assets under management as of
3/31/18 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:
- market developments, including the
successful rate period transition by the funds identified in this
press release;
- 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.
505761-INV-O-5/20
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version on businesswire.com: https://www.businesswire.com/news/home/20180525005360/en/
NuveenKristyna Munoz254-644-1615kristyna.munoz@nuveen.com
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