Nuveen Closed-End Funds Complete Preferred Share Actions
June 21 2018 - 04:45PM
Business Wire
The 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 completed
certain actions related to one of each Fund’s existing series of
Variable Rate Demand Preferred (VRDP) Shares. NAC has completed the
transition of the Fund’s Series 5 VRDP shares from minimum (7-day)
rate periods to a special rate period of longer than 7 days, and
NVG has completed the transition of the Fund’s Series 4 VRDP shares
from a special rate period of longer than 7 days to minimum (7-day)
rate periods. As a result of the transactions there was no change
in the total amount of the each Fund’s preferred shares
outstanding.
Common
Share
Ticker
Preferred
Type
Preferred
Series
Preferred
CUSIP
Amount
Outstanding
Number of
Preferred
Shares
NAC VRDP 5 67066Y873 158,900,000
1,589 NVG VRDP 4 67071L866 180,000,000
1,800
In connection with the transition to the special rate period,
the Series 5 VRDP shares of NAC have been mandatorily tendered by
the holders and sold through a remarketing agent to an
institutional investor. During the special rate period, the VRDP
shares will not be remarketed by a remarketing agent, be subject to
optional or mandatory tender events, or supported by a liquidity
provider. During this period, VRDP dividends will be set weekly at
a floating rate based on a predetermined formula. The VRDP 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 payment of dividends.
In connection with the transition to minimum (7-day) rate
periods, the Series 4 VRDP Shares of NVG were remarketed from the
existing institutional holder through a remarketing agent to
qualified institutional buyers, as defined in Rule 144A under the
Securities Act of 1933 (the Securities Act). During the minimum
rate periods, the VRDP Series 4 Shares will be subject to optional
tender by the holders for remarketing by a remarketing agent, will
be subject to mandatory tender for remarketing upon the occurrence
of certain events, and will be supported by a liquidity provider.
The VRDP Series 4 Shares dividends are set weekly at a rate
established by the Fund's remarketing agent, subject to a maximum
rate which will increase over time in the event of an extended
period of unsuccessful remarketings. The VRDP Series 4 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.
No VRDP shares have been registered, or are expected to be
registered, under 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.
531261-INV-O-06/19
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version on businesswire.com: https://www.businesswire.com/news/home/20180621006295/en/
NuveenKristyna Munoz254-644-1615kristyna.munoz@nuveen.com
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