Nuveen Preferred and Income 2022 Term Fund Announces Final Results of Tender Offer and Increase in Distribution Rate
Nuveen Preferred and Income 2022 Term Fund (NYSE: JPT) has announced the final results of a tender offer and an increase in its monthly distribution. The tender offer allowed shareholders to repurchase up to 100% of common shares, with 2,454,617 shares tendered, representing approximately 36% of total shares outstanding. The repurchase price was set at $23.2613 per share. Additionally, effective February 28, 2022, the fund will eliminate its term structure, amend investment policies to allow contingent capital securities, increase leverage, and waive 50% of management fees for one year. The monthly distribution rate increased to $0.1350, reflecting a 13.9% rise.
- Successful completion of a tender offer with 2,454,617 shares tendered (36% of total outstanding).
- Increase in monthly distribution rate to $0.1350, a 13.9% increase from the previous month.
- Waiver of 50% of management fees for the first year following the elimination of the term structure.
- Amendment of investment policies to include contingent capital securities.
- None.
As previously announced, the fund conducted a tender offer allowing shareholders to offer up to
In the tender offer, 2,454,617 common shares were tendered, representing approximately
As a result of the successful completion of the tender offer, the restructuring of the fund described in the fund’s proxy statement dated
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The fund’s declaration of trust will be amended effective
February 28, 2022 to eliminate the term structure of the fund. The amendment of the fund’s declaration of trust to eliminate the term structure was previously approved by the fund’s shareholders at a special meeting held onDecember 17, 2021 , as adjourned toJanuary 19, 2022 . - The fund’s investment policies have been amended to permit investment in contingent capital securities (“CoCos”).
- The fund’s use of leverage is expected to increase from current levels.
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The fund’s name will change to “Nuveen Preferred and Income Fund” effective
February 28, 2022 (the fund’s common shares will continue to trade on theNew York Stock Exchange under the ticker JPT). -
Nuveen Fund Advisors, LLC, the investment adviser to the fund, will waive
50% of the fund’s net management fees beginningFebruary 28, 2022 and continuing over the first year following elimination of the term structure.
In addition, the
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The fund intends to distribute all or substantially all of its net investment income through its monthly distributions. However, there is no guarantee that the fund will maintain monthly distributions at any particular rate. For further information regarding fund distributions, including earnings, undistributed net investment income, and notices, please visit www.nuveen.com/cef.
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 Securities, LLC, member
The information contained on the
FORWARD-LOOKING STATEMENTS
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.
The annual and semi-annual reports and other regulatory filings of
EPS-2043147PR-E0222X
View source version on businesswire.com: https://www.businesswire.com/news/home/20220224005216/en/
Financial Professionals:
800-752-8700
Investors:
800-257-8787
Media:
media-inquiries@nuveen.com
Source:
FAQ
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