Nuveen Preferred and Income Term Fund Announces Shareholder Proposal
January 18 2024 - 4:15PM
Business Wire
The Board of Trustees of Nuveen Preferred and Income Term Fund
(NYSE: JPI) has approved a proposal that will allow shareholders of
the fund the opportunity to maintain their investment in the fund
and its leveraged exposure to preferred and other income producing
securities.
In light of the upcoming scheduled termination of JPI on August
31, 2024, the proposal asks shareholders to vote to amend the
fund’s declaration of trust to eliminate the fund’s term structure.
If the amendment is approved by shareholders, the fund will conduct
a tender offer for 100% of its outstanding shares at net asset
value. If the fund’s common assets taking into account common
shares properly tendered in the tender offer would be $70 million
or greater, the tender offer will be completed and the fund’s term
will be eliminated. If the fund’s common assets after the tender
offer would be less than $70 million, the tender offer will be
cancelled with no common shares repurchased, and instead, the fund
will proceed to terminate as scheduled.
If JPI’s term structure is eliminated, the fund’s name will
change to “Nuveen Preferred Securities & Income Opportunities
Fund,” and the common shares of the fund will continue to trade on
the New York Stock Exchange under the current ticker symbol. In
addition, if the fund’s term structure is eliminated, Nuveen will
waive 50% of its net management fees over the first year following
the elimination of the term, which may enhance the net earnings of
the fund.
The changes described above will take effect with respect to JPI
only if shareholders of the fund approve the proposal described
above and the tender offer condition is satisfied. More information
on the proposal will be contained in proxy materials for the fund
expected to be filed in the near future.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $51
billion of assets under management across 48 CEFs as of 30 Sep
2023. The funds offer exposure to a broad range of asset classes
and are designed for income-focused investors seeking regular
distributions. Nuveen has more than 35 years of experience managing
CEFs.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds.
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 $1.1 trillion in assets under management as
of 30 Sep 2023 and operations in 27 countries. Its investment
specialists 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.
Nuveen Securities, LLC, member FINRA and SIPC.
The information contained on the Nuveen website is not a part of
this press release.
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 timing of distributions and
other events identified in this press release;
- legal and regulatory developments;
- the ability of the fund to obtain requisite shareholder
approval for the proposal described herein;
- the number of shares tendered in response to the fund’s tender
offer; and
- other additional risks and uncertainties.
Nuveen and the closed-end funds sponsored by Nuveen undertake no
responsibility to update publicly or revise any forward-looking
statements.
IMPORTANT INFORMATION
In connection with the proposal discussed herein, the fund
expects to file with the Securities and Exchange Commission (“SEC”)
solicitation materials in the form of a proxy statement on Schedule
14A. Investors are urged to read the solicitation materials and any
other relevant documents when they become available because they
will contain important information about the proposal. After they
are filed, free copies of the solicitation materials 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. However, the fund, Nuveen 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
proposal discussed herein. Information about the trustees and
officers of the fund may be found in the fund’s annual report
previously filed with the SEC.
The tender offer referred to herein has not yet commenced, and
there is no certainty that such offer will be commenced or
completed. This press release is neither an offer to purchase nor a
solicitation of an offer to sell securities. The fund’s tender
offer will be made only through an offer to purchase and other
related materials that will be made available to fund shareholders
and filed with the SEC if and when the tender offer commences.
Shareholders and other investors are urged to read the tender offer
statement, the offer to purchase and other related materials when
they become available because they will contain important
information. After they are filed, free copies of these materials
will be available on the SEC’s web site at www.sec.gov.
Fund shares are not guaranteed or endorsed by any bank or other
insured depository institution, and are not federally insured by
the Federal Deposit Insurance Corporation. Shares of closed-end
funds are subject to investment risks, including the possible loss
of principal invested. Past performance is no guarantee of future
results. Closed-end funds frequently trade at a discount to their
net asset value.
EPS-3334840CR-E0124W
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Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
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