Nuveen municipal income funds might redeem or remarket preferreds

By Angela McDaniels

Tacoma, Wash., Sept. 27 – Four Nuveen municipal income funds might take actions related to their variable-rate demand preferred shares and institutional MuniFund term preferred shares, according to a news release from Chicago-based Nuveen Investments Inc.

Nuveen California AMT-Free Quality Municipal Income Fund contemplates fully redeeming its $104.4 million outstanding series 5 variable-rate demand preferreds and $36 million series 2018 institutional MuniFund term preferreds with the proceeds of newly issued MuniFund preferreds in a variable-rate remarketed mode.

Nuveen California Quality Municipal Income Fund is contemplating a transition of its $160 million series 8 variable-rate demand preferreds from minimum (seven-day) rate periods to a special rate period of longer than seven days through a mandatory remarketing of the preferreds from existing institutional holders via a remarketing agent to other institutional purchasers. During the special rate period, the preferreds will not be remarketed by a remarketing agent or supported by a liquidity provider. Nuveen Municipal Credit Income Fund is considering doing the same with its $268.8 million series 1 and $262.2 million series 2 variable-rate demand preferreds.

Nuveen AMT-Free Quality Municipal Income Fund is contemplating a transition of the fund’s $100 million series 5 variable-rate demand preferreds from a special rate period of longer than seven days to minimum (seven-day) rate periods. The transition will be conducted through a remarketing of the preferreds from the existing institutional holder through a remarketing agent to institutional purchasers. During the minimum rate periods, the preferreds will be remarketed by a remarketing agent, be subject to optional or mandatory tender events and will be supported by a liquidity provider.

The contemplated actions have received board approval and are expected to take place during the fourth quarter of 2017.

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