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
View source version on businesswire.com: https://www.businesswire.com/news/home/20180525005360/en/
Contacts:
Kristyna Munoz
254-644-1615
kristyna.munoz@nuveen.com
