Nuveen Investments, a leading global provider of investment services to institutions and high-net-worth investors, today announced further progress in refinancing the remaining portion of the outstanding auction-rate preferred shares (ARPS) of its equity and corporate debt closed-end funds. This final portion of outstanding ARPS totals approximately $750 million. The funds have sought temporary exemptive relief from Section 18 of the Investment Company Act of 1940 (’40 Act) from the Securities and Exchange Commission (SEC). This relief, which the Funds expect to become effective within approximately three weeks, would permit the funds to temporarily operate with reduced asset coverage levels for the debt used to refinance these remaining ARPS.
This additional $750 million redemption, if completed as contemplated, would finish the refinancing of all remaining Nuveen equity and corporate debt fund ARPS which froze in February 2008. All the funds for which the SEC relief is pending have financing arrangements that would enable them to redeem all outstanding ARPS, although market conditions could make it unfeasible for the funds to refinance some or all of their ARPS as planned, even with committed financing in place. In addition, there is no guarantee the relief will receive final SEC approval.
In addition, refinancing Nuveen’s remaining closed-end municipal bond fund ARPS remains a priority. To date, $2.15 billion of the original $11.1 billion of municipal ARPS have been redeemed.
“We are very pleased to report to our leveraged equity and corporate debt closed-end fund investors that those funds continue to make progress toward completing the final refinancing of their ARPS,” said Bill Adams, Executive Vice President, Nuveen Investments. “Further, we want to remind our leveraged closed-end fund investors that we remain committed to refinancing all of our closed-end funds’ ARPS, which currently consists primarily of ARPS issued by our municipal bond funds.”
The funds that have applied for exemptive relief from the SEC are:
|Nuveen Diversified Dividend & Income Fund||$15 million|
|Nuveen Multi-Strategy Income & Growth Fund||$119 million|
|JQC||Nuveen Multi-Strategy Income & Growth Fund 2||$166 million|
|JTP||Nuveen Quality Preferred Income Fund||$65 million|
|JPS||Nuveen Quality Preferred Income Fund 2||$130 million|
|JHP||Nuveen Quality Preferred Income Fund 3||$18 million|
|JRS||Nuveen Real Estate Income Fund||$17 million|
|JTA||Nuveen Tax-Advantaged Total Return Strategy Fund||$29 million|
|NSL||Nuveen Senior Income Fund||$26 million|
|JFR||Nuveen Floating Rate Income Fund||$105 million|
|JRO||Nuveen Floating Rate Income Opportunity Fund||$60 million|
The funds expect to release additional information regarding the timing of the refinancing of each fund’s ARPS in early July. For more information about Nuveen ARPS, please see the Auction-Rate Preferred Resource Center at www.nuveen.com/arps.
Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $115 billion of assets on March 31, 2009.