NEW YORK–(BUSINESS WIRE)–Shareholders of Nuveen Mid-Duration Municipal Term Fund (NYSE: NID) and Nuveen Intermediate Duration Quality Municipal Term Fund (NYSE: NIQ) have approved a proposed restructuring of their respective funds. The restructuring will allow shareholders of each fund to retain their investment in a mid-duration leveraged fund that invests in a portfolio of municipal securities in lieu of the fund’s planned termination.
As a condition of the restructuring being effective, each fund must make a take-over bid allowing shareholders to tender up to 100% of their common shares for redemption at net asset value. If the total assets of a fund attributable to the common shares, taking into account the common shares duly tendered in the tender offer, amount to $70 million or more, the tender offer will be completed and the mandate structure of the fund will be eliminated. If a fund’s total assets attributable to common shares after the tender offer are less than $70 million, the tender offer will not be completed and no common shares will be repurchased, the proposal restructuring will not be implemented and instead the fund will proceed to terminate as scheduled in accordance with its original term, on March 31, 2023 for NID and June 30, 2023 for NIQ, unless the board of directors of the fund does not extend the duration up to twelve months in accordance with the fund’s incorporation documents. In the meantime, each fund may not be fully invested in accordance with its investment policies and may reduce its leverage in order to raise cash in anticipation of payments to bidding shareholders or all liquidating shareholders of the fund in the in connection with its planned termination.
If the tender offer is successful, the restructuring of each fund will include:
An amendment to the fund’s declaration of trust to eliminate the mandate structure.
A new contractual fee waiver under which Nuveen Fund Advisors, LLC waives 50% of its net management fee in the first year after the termination of the term structure.
A change in the name of the fund to reflect the term elimination. NID’s name will change to “Nuveen Intermediate Duration Municipal Fund” and NIQ’s name will change to “Nuveen Intermediate Duration Quality Municipal Fund” (the common shares of each fund will continue to trade on the New York Stock Exchange under the current symbol).
There can be no assurance that the tender offer or the restructuring of any of the funds will be successful.
This announcement is not a recommendation, an offer to buy or a solicitation of an offer to sell shares of the funds. The funds have not yet launched the tender offers described in this press release. Any tender offer will be made only by way of an offer to purchase, a related letter of transmittal and other documents which will be filed with the Securities and Exchange Commission (SEC) as attachments to a statement of Tender Offer on Schedule TO and will be available free of charge on the SEC’s website at www.sec.gov. Common stockholders should read their fund’s offer to purchase and tender offer statement on Schedule TO and related exhibits when these materials are filed and become available because they will contain important information about the takeover bid for the fund. The funds will also make available, free of charge, their offers to purchase and their letters of transmittal.
Nuveen is a leading closed-end fund (CEF) sponsor with $57 billion in assets under management across 56 CEFs as of June 30, 2022. The funds provide exposure to a wide range of asset classes and are designed for income-oriented investors who seek regular distributions. Nuveen has over 35 years of experience managing CEFs.
For more information, please visit the Nuveen CEF homepage www.nuveen.com/closed-end-funds or contact:
Nuveen, TIAA’s investment manager, offers a full suite of results-driven 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 June 30, 2022 and operates in 27 countries. Its investment specialists offer deep expertise in a full range of traditional and alternative investments across a wide range of vehicles and custom strategies. For more information, please visit www.nuveen.com.
Nuveen Securities, LLC, Member FINRA and SIPC.
Information contained on Nuveen’s website does not form part of this press release.
Certain statements made in this press release are forward-looking statements. Actual results or future events may differ materially from those anticipated in the forward-looking statements due to numerous factors. These include, but are not limited to:
• market developments;
• legal and regulatory developments;
• the satisfaction of the conditions for carrying out the OPA of a fund; 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 assume no responsibility to publicly update or revise any forward-looking statements.
Annual and semi-annual reports and other regulatory filings of Nuveen Closed-End Funds with the Securities and Exchange Commission (“SEC”) can be accessed on the SEC’s website at www.sec.gov and on the Nuveen website at www.nuveen.com/cef and may discuss the above factors or other factors that affect Nuveen Closed-End Funds. Information contained on Nuveen’s website does not form part of this press release.