CHICAGO--(BUSINESS WIRE)--Nuveen Investments, a leading global provider of investment services to institutions, as well as individual investors, today announced that two municipal closed-end funds have issued Variable Rate Demand Preferred (VRDP) shares through private placements with qualified institutional buyers, as defined pursuant to Rule 144A under the Securities Act of 1933.
The first of these transactions is the issuance of additional VRDP shares by the Nuveen Investment Quality Municipal Fund, Inc. (NYSE: NQM). The fund sold an additional 250 Series 1 VRDP shares for gross proceeds of $25,000,000. The second transaction is the issuance of additional VRDP shares by the Nuveen Select Quality Municipal Fund, Inc. (NYSE: NQS). The fund sold an additional 150 Series 1 VRDP shares for gross proceeds of $15,000,000. Barclays Bank PLC is the liquidity provider for both the existing and additional NQM Series 1 VRDP shares and the existing and additional NQS Series 1 VRDP shares.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc. In total, Nuveen Investments managed approximately $224 billion as of March 31, 2013. For more information, please visit the Nuveen Investments website at www.nuveen.com.
VRDP shares include a liquidity feature that allows holders of VRDP to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. These VRDP shares qualify as equity for income tax purposes. This affords VRDP share dividends the same tax treatment as the income on the fund’s underlying investments, notwithstanding VRDP terms that require the fund to redeem VRDP shares still owned by the liquidity provider if there are six months of continuous, unsuccessful remarketing.
VRDP dividends are set weekly at a rate established by the fund’s remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.
FORWARD LOOKING STATEMENTS
This press release may contain 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.
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 the 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 web site at www.nuveen.com and may discuss the above-mentioned or other factors that affect the Nuveen closed-end funds. The information contained on our web site is not a part of this press release.
This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the funds’ common and preferred shareholders have been informed of the funds’ issuance of VRDP.
No VRDP shares have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, no VRDP shares may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
