Nuveen Floating Rate Income Fund Announces Terms of Rights Offering
Nuveen Floating Rate Income Fund (NYSE: JFR) has announced a rights offering allowing current shareholders to purchase additional common shares at a discount. The Board approved issuing transferable rights to common shareholders as of January 21, 2025, with a 1-for-5 subscription ratio. The subscription price will be 95% of the average closing price over five trading days, with a minimum of 90% of NAV.
The offering aims to increase fund assets to capitalize on investment opportunities, particularly in senior loans priced below par. Key benefits include tax-efficient portfolio expansion, enhanced trading liquidity, and potential expense ratio reduction through a larger asset base. Rights will be tradeable on NYSE under symbols 'JFR RTWI' (when-issued) and 'JFR RT', with the offering expiring on February 19, 2025.
Record date shareholders who fully exercise their rights can participate in an over-subscription privilege for any remaining shares, subject to pro-rata allocation if oversubscribed.
Nuveen Floating Rate Income Fund (NYSE: JFR) ha annunciato un'offerta di diritti che consente agli azionisti attuali di acquistare ulteriori azioni comuni a un prezzo scontato. Il Consiglio ha approvato l'emissione di diritti trasferibili agli azionisti comuni a partire dal 21 gennaio 2025, con un rapporto di sottoscrizione di 1 per 5. Il prezzo di sottoscrizione sarà pari al 95% del prezzo medio di chiusura su cinque giorni di contrattazione, con un minimo del 90% del valore patrimoniale netto (NAV).
L'offerta mira ad aumentare gli attivi del fondo per capitalizzare opportunità di investimento, in particolare in prestiti senior quotati al di sotto del valore nominale. I principali vantaggi includono l'espansione del portafoglio in modo fiscalmente efficiente, una maggiore liquidità commerciale e la potenziale riduzione del rapporto spese grazie a una base di attivi più ampia. I diritti saranno negoziabili sul NYSE con i simboli 'JFR RTWI' (quando emesso) e 'JFR RT', con la scadenza dell'offerta fissata al 19 febbraio 2025.
Gli azionisti registrati che esercitano completamente i loro diritti possono partecipare a un privilegio di sovrascrizione per eventuali azioni rimanenti, soggetto a ripartizione pro-rata in caso di sovrascrizione.
Nuveen Floating Rate Income Fund (NYSE: JFR) ha anunciado una oferta de derechos que permite a los accionistas actuales comprar acciones comunes adicionales a un precio descontado. La Junta aprobó la emisión de derechos transferibles a los accionistas comunes a partir del 21 de enero de 2025, con una relación de suscripción de 1 por 5. El precio de suscripción será del 95% del precio promedio de cierre durante cinco días de negociación, con un mínimo del 90% del valor neto de los activos (NAV).
El objetivo de la oferta es aumentar los activos del fondo para capitalizar oportunidades de inversión, particularmente en préstamos senior tasados por debajo del valor nominal. Los beneficios clave incluyen la expansión de la cartera de manera fiscalmente eficiente, una mayor liquidez comercial y la posible reducción del índice de gastos a través de una base de activos más amplia. Los derechos se negociarán en la NYSE bajo los símbolos 'JFR RTWI' (cuando se emita) y 'JFR RT', con el vencimiento de la oferta fijado para el 19 de febrero de 2025.
Los accionistas registrados que ejercen plenamente sus derechos pueden participar en un privilegio de sobre suscripción para cualquier acción restante, sujeto a asignación pro-rata si hay sobrascripciones.
Nuveen Floating Rate Income Fund (NYSE: JFR)는 현재 주주가 추가 보통주를 할인된 가격에 구매할 수 있는 권리 공모를 발표했습니다. 이사회는 2025년 1월 21일부터 보통주주에게 양도 가능한 권리 발행을 승인했으며, 구독 비율은 1대 5입니다. 구독 가격은 5일간의 평균 종가의 95%로 설정되며, NAV의 최소 90%로 합니다.
이번 공모의 목적은 투자 기회를 활용하기 위해 펀드 자산을 늘리는 것으로, 특히 액면가 이하로 가격이 책정된 선순위 대출에 중점을 두고 있습니다. 주요 혜택으로는 세금 효율적인 포트폴리오 확장, 향상된 거래 유동성, 더 큰 자산 기반을 통한 비용 비율 감소 가능성이 포함됩니다. 권리는 'JFR RTWI' (발행 시)와 'JFR RT'라는 기호 아래 NYSE에서 거래 가능하며, 공모는 2025년 2월 19일에 만료됩니다.
권리를 전부 행사하는 기록 일자의 주주들은 남은 주식에 대한 초과 구독 특권에 참여할 수 있으며, 초과 구독될 경우 비례 배분이 이루어집니다.
Nuveen Floating Rate Income Fund (NYSE: JFR) a annoncé une offre de droits permettant aux actionnaires actuels d'acheter des actions ordinaires supplémentaires à un prix réduit. Le conseil a approuvé l'émission de droits transférables aux actionnaires ordinaires à partir du 21 janvier 2025, avec un ratio d'abonnement de 1 pour 5. Le prix d'abonnement sera de 95 % du prix moyen de clôture sur cinq jours de bourse, avec un minimum de 90 % de la valeur nette d'inventaire (NAV).
L'objectif de l'offre est d'augmenter les actifs du fonds afin de tirer parti des opportunités d'investissement, notamment dans des prêts senior évalués en dessous de la valeur nominale. Les principaux avantages incluent une expansion de portefeuille fiscalement efficace, une meilleure liquidité de négociation et une réduction potentielle du ratio de frais grâce à une base d'actifs plus large. Les droits seront négociables sur la NYSE sous les symboles 'JFR RTWI' (lors de l'émission) et 'JFR RT', avec une date d'expiration de l'offre fixée au 19 février 2025.
Les actionnaires de la date de référence qui exercent pleinement leurs droits peuvent participer à un privilège de sursouscription pour les actions restantes, sous réserve d'une allocation pro-rata en cas de sursouscriptions.
Nuveen Floating Rate Income Fund (NYSE: JFR) hat eine Bezugsrechtsemission angekündigt, die es den aktuellen Aktionären ermöglicht, zusätzliche Stammaktien zu einem ermäßigten Preis zu erwerben. Der Vorstand hat die Ausgabe übertragbarer Rechte an die Stammaktionäre ab dem 21. Januar 2025 genehmigt, mit einem Bezugsverhältnis von 1 zu 5. Der Bezugspreis beträgt 95% des durchschnittlichen Schlusskurses über fünf Handelstage, mit einem Minimum von 90% des Nettoinventarwerts (NAV).
Die Emission zielt darauf ab, die Vermögenswerte des Fonds zu erhöhen, um Investitionsmöglichkeiten insbesondere in Senior Loans unter Nennwert zu nutzen. Zu den wichtigsten Vorteilen gehören die steuerlich effiziente Portfoliowachstum, verbesserte Handelsliquidität und eine potenzielle Senkung des Kostenverhältnisses durch eine größere Vermögensbasis. Die Rechte werden an der NYSE unter den Symbolen 'JFR RTWI' (beim Emissionszeitpunkt) und 'JFR RT' handelbar sein, wobei die Emission am 19. Februar 2025 abläuft.
Aktionäre, die ihre Rechte vollständig ausüben, können an einem Überzeichnungsprivileg für verbleibende Aktien teilnehmen, wobei im Fall einer Überzeichnung eine pro-rata Zuteilung erfolgt.
- Shareholders can purchase additional shares at a market discount of 5%
- Opportunity to invest in senior loans priced below par at attractive valuations
- Rights are transferable and will be traded on NYSE
- Potential for increased trading volume and enhanced share liquidity
- Expected reduction in expense ratio through larger asset base
- Potential dilution for shareholders who don't participate in the offering
- New shares issued won't be eligible for February and March 2025 distributions
Insights
This rights offering represents a strategic capital raise for Nuveen Floating Rate Income Fund, offering existing shareholders the opportunity to purchase additional shares at a 5% discount to market price. The 1-for-5 rights structure allows shareholders to maintain or increase their ownership position while the fund expands its asset base.
The timing is particularly opportunistic given current market conditions in the senior loan space. With many performing loans trading below par, the fund can potentially enhance yields without compromising credit quality. The ability to deploy new capital without forced selling of existing positions provides tax efficiency benefits for current shareholders.
From a structural perspective, the over-subscription privilege for existing shareholders and the transferability of rights on NYSE provide flexibility in participation. The 90% NAV floor on the subscription price helps protect against excessive dilution. The potential for increased trading volume and economies of scale through fixed cost distribution could benefit long-term shareholders.
This capital raise comes at an interesting juncture in the floating rate loan market. With the Federal Reserve potentially entering an easing cycle in 2025, the ability to lock in attractive yields on senior loans trading at discounts could provide meaningful total return potential. The fund's focus on current income aligns well with investor demand for yield in the current environment.
The rights offering's structure balances shareholder interests through the 5% discount to market price while maintaining reasonable anti-dilution protection. The transferability of rights provides valuable optionality for shareholders who may not wish to participate directly. The potential for increased fund size could improve secondary market liquidity and trading efficiency for all shareholders.
After considering a number of factors, including potential benefits and costs, the Board and the Fund’s investment adviser, Nuveen Fund Advisors, LLC (the “Adviser”), have determined that the Offer will benefit both the Fund and its shareholders and increase the assets of the Fund available to take advantage of existing investment opportunities, consistent with the Fund’s investment objective of providing shareholders with a high level of current income.
The Adviser believes this is an attractive time to raise additional assets for the Fund based on several factors, including the following potential benefits:
- Opportunities in senior loans: investments in performing loans priced below par offer attractive current valuations and the potential to enhance portfolio yields and fund earnings while improving the potential for investment performance for all shareholders
- Tax-efficiency: potential to invest in new opportunities without the need to sell existing portfolio positions, which may reduce taxable events for shareholders
- Benefit for shareholders: the Offer provides shareholders with an opportunity to buy new Common Shares below market price
- Enhanced liquidity: the Offer creates the potential for increased trading volume and liquidity of Common Shares
- Lower expense ratio: the Offer is expected to spread fixed operating costs across a larger asset base
Certain key terms of the Offer include:
- Holders of Common Shares on the Record Date (“Record Date Shareholders”) will receive one Right for each outstanding Common Share owned on the Record Date. The Rights entitle the holders to purchase one new Common Share for every 5 Rights held (1-for-5).
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The subscription price per Common Share (the “Subscription Price”) will be determined based upon a formula equal to
95% of the average of the last reported sales price of the Common Shares on the NYSE on the Expiration Date and each of the four (4) preceding trading days (the “Formula Price”). If, however, the Formula Price is less than90% of the net asset value per Common Share at the close of trading on the NYSE on the Expiration Date, then the Subscription Price will be90% of the Fund’s net asset value per Common Share at the close of trading on the NYSE on the Expiration Date. The Rights offering will expire at 5:00 p.m., Eastern time, on February 19, 2025 (the “Expiration Date”). - Record Date Shareholders who fully exercise all Rights issued to them can subscribe, subject to certain limitations and allotment, for any additional Common Shares which were not subscribed for by other holders of Rights at the Subscription Price, subject to the right of the Board to eliminate this over-subscription privilege. Investors who are not Record Date Shareholders but who otherwise acquire Rights in the secondary market are not entitled to participate in the over-subscription privilege. If these requests exceed available Common Shares, they will be allocated pro rata among those fully exercising Record Date Shareholders who over-subscribe based on the number of Rights originally issued to them by the Fund.
- Rights are transferable and are expected to be admitted for trading on the NYSE under the symbol “JFR RTWI” initially trading “when-issued” on January 17, 2025. The Rights will begin trading with regular settlement under the symbol “JFR RT” on or about January 23, 2025, and will cease trading at the close on February 18, 2025, one day before the Offer’s Expiration Date. During this time, Record Date Shareholders may also choose to sell their Rights.
The Fund has declared monthly distributions payable on February 3, 2025 and March 3, 2025, with record dates of January 15, 2025 and February 14, 2025, respectively. Any Common Shares issued after such record dates as a result of the Rights offering will not be record date Common Shares for the Fund’s monthly distributions to be paid on February 3, 2025 and March 3, 2025 and will not be entitled to receive such distributions.
The Offer will be made only by means of a prospectus supplement and accompanying prospectus. The final terms of the Offer may be different from those set out above and the terms included in the prospectus supplement and accompanying prospectus will control.
The information in this press release is not complete and is subject to change. This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. The Fund’s prospectus supplement and accompanying prospectus will contain this and additional information about the Fund and additional information about the Offer, and should be read carefully before investing. For further information regarding the Offer, or to obtain a prospectus supplement and the accompanying prospectus, when available, please contact the Fund’s information agent:
Georgeson LLC:
833-880-3673
For more information, please visit Nuveen’s CEF homepage www.nuveen.com/closed-end-funds or contact:
Financial Professionals:
800-752-8700
Investors:
800-257-8787
Media:
media-inquiries@nuveen.com
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
Nuveen Securities, LLC, member FINRA and SIPC.
The information contained on the Nuveen website is not a part of this press release.
Certain statements made in this release are 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;
- legal and regulatory developments; and
- other additional risks and uncertainties.
You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.
The annual and semi-annual reports and other regulatory filings of Nuveen closed-end funds with the Securities and Exchange Commission (“SEC”) are accessible on the SEC’s web site at www.sec.gov and on Nuveen’s website at www.nuveen.com/cef and may discuss the above-mentioned or other factors that affect Nuveen closed-end funds.
4140394-0128
View source version on businesswire.com: https://www.businesswire.com/news/home/20250108456349/en/
Financial Professionals:
800-752-8700
Investors:
800-257-8787
Media:
media-inquiries@nuveen.com
Source: Nuveen Floating Rate Income Fund
FAQ
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