Nuveen High Income 2023 Target Term Fund Attracts $70 Million
December 19 2018 - 9:08AM
Business Wire
Nuveen has successfully completed the initial public offering of
the Nuveen High Income 2023 Target Term Fund. The new closed-end
fund’s investment objectives are to provide a high level of current
income and to return the original $9.875 NAV per common share on or
about December 1, 2023, its termination date. The fund seeks to
achieve its investment objectives by investing at least 80% of its
managed assets in corporate debt securities (including bonds and
senior loans). The fund will begin trading on the New York Stock
Exchange (NYSE) today, under the symbol JHAA.
The fund raised approximately $70 million (before deduction of
the sales load and offering expenses payable by the fund) in its
common share offering, excluding any exercise of the underwriters’
option to purchase additional shares. If the underwriters exercise
that option in full, the fund will have raised approximately $80
million.
Managed by an experienced investment team dedicated to high
yield credit, JHAA will employ a disciplined bottom-up investment
process to identify securities across diverse sectors and
industries that it believes are undervalued, mispriced, or provide
attractive income consistent with the objectives of the fund. JHAA
has a five-year term and the fund intends to pay regular monthly
distributions, and on or about December 1, 2023, liquidate its
portfolio and distribute substantially all of its net assets to
shareholders.
Nuveen Fund Advisors, LLC, a subsidiary of Nuveen, is the fund’s
investment adviser, responsible for the fund’s overall investment
strategy. Nuveen Asset Management, an affiliate of Nuveen, is the
fund’s subadviser, responsible for investing the fund’s assets. The
lead managers of the underwriting syndicate were Morgan Stanley
& Co. LLC and Wells Fargo Securities, LLC.
Shares of closed-end investment companies, like the fund,
usually trade on a national stock exchange. Similar to stocks, the
fund’s share price will fluctuate with market conditions and, at
the time of sale, may be worth more or less than the original
investment. Shares of closed-end funds often trade at a discount to
their net asset value.
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 $988 billion in assets under management as of
9/30/18 and operations in 16 countries. Its affiliates offer deep
expertise across a comprehensive range of traditional and
alternative investments through a wide array of vehicles and
customized strategies. For more information, please visit
www.nuveen.com
The information contained on the Nuveen website is not a part of
this press release. Nuveen Securities, LLC, member FINRA and
SIPC.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of the fund
carefully before investing. For a prospectus which contains this
and other information relevant to an investment in the fund, please
contact your securities representative or Nuveen Securities, LLC,
333 W. Wacker Drive, Chicago, IL 60606. Investors should read the
prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not
soliciting an offer to buy securities in any jurisdiction where the
offer or sale is not permitted.
Key Risk Considerations:
Investment and Market Risk. An investment in Common
Shares is subject to investment risk, including the possible loss
of the entire principal amount that you invest. Your investment in
Common Shares represents an indirect investment in the securities
owned by the Fund. Your Common Shares at any point in time may be
worth less than your original investment, even after taking into
account the reinvestment of Fund dividends and distributions.
Five-Year Term Risk. Because the assets of the Fund will
be liquidated in connection with its termination, the Fund may be
required to sell portfolio securities when it otherwise would not,
including at times when market conditions are not favorable, or at
a time when a particular security is in default or bankruptcy, or
otherwise in severe distress, which may cause the Fund to lose
money. Although the Fund has an investment objective of returning
$9.875 to Common Shareholders on or about the Termination Date, the
Fund may not be successful in achieving this objective. The return
of Original NAV is not an express or implied guarantee obligation
of the Fund. There can be no assurance that the Fund will be able
to return Original NAV to Common Shareholders, and such return is
not backed or otherwise guaranteed by Nuveen or any other
entity.
Below Investment Grade Risk. Securities of below
investment grade quality are regarded as having speculative
characteristics with respect to the issuer’s capacity to pay
interest and repay principal, and may be subject to higher price
volatility and default risk than investment grade securities of
comparable terms and duration. Issuers of lower grade securities
may be highly leveraged and may not have available to them more
traditional methods of financing. The prices of these lower grade
securities are typically more sensitive to negative developments,
such as a decline in the issuer’s revenues or a general economic
downturn. The secondary market for lower rated securities may not
be as liquid as the secondary market for more highly rated
securities, a factor which may have an adverse effect on the Fund’s
ability to dispose of a particular security. If a below investment
grade security goes into default, or its issuer enters bankruptcy,
it might be difficult to sell that security in a timely manner at a
reasonable price.
Debt Securities Risk. Issuers of debt instruments in
which the Fund may invest may default on their obligations to pay
principal or interest when due. This non-payment would result in a
reduction of income to the Fund, a reduction in the value of a debt
instrument experiencing non-payment and, potentially, a decrease in
the NAV of the Fund. There can be no assurance that liquidation of
collateral would satisfy the issuer’s obligation in the event of
non-payment of scheduled interest or principal or that such
collateral could be readily liquidated. In the event of bankruptcy
of an issuer, the Fund could experience delays or limitations with
respect to its ability to realize the benefits of any collateral
securing a security. To the extent that the credit rating assigned
to a security in the Fund’s portfolio is downgraded, the market
price and liquidity of such security may be adversely affected.
For additional detailed risk information, please refer to the
fund’s prospectus or visit the fund’s webpage at
www.nuveen.com.
695664 -INV-O-12/20
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version on businesswire.com: https://www.businesswire.com/news/home/20181219005418/en/
Kristyna Munoz254-644-1615kristyna.munoz@nuveen.com
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