Nuveen Preferred and Income 2022 Term Fund Announces Result of Special Shareholder Meeting
January 19 2022 - 4:50PM
Business Wire
Shareholders of Nuveen Preferred and Income 2022 Term Fund
(NYSE: JPT) have approved a proposal to restructure the fund. The
restructuring will allow shareholders the opportunity to maintain
their investment in the fund and its exposure to a leveraged
strategy focused on preferred and other income producing securities
in lieu of the scheduled termination of the fund.
Prior to the effectiveness of the restructuring, the fund will
conduct a tender offer allowing shareholders to offer up to 100% of
their shares for repurchase at net asset value. The fund expects to
announce the tender offer shortly. If the fund’s net assets taking
into account shares properly tendered in the tender offer would be
$70 million or greater, the tender offer will be completed and the
fund’s term structure will be eliminated. If the fund’s net assets
after taking into account the shares tendered in the tender offer
would be less than $70 million, the tender offer will not be
completed and no common shares will be repurchased, the
restructuring proposal will not be implemented and instead, the
fund will proceed to terminate as scheduled pursuant to its
original term on or before March 1, 2022. In the interim period,
the fund may not be fully invested in accordance with its
investment policies in order to raise liquid assets in anticipation
of payments to either tendering shareholders or to all shareholders
in liquidation of the fund in connection with its scheduled
termination.
If the tender offer is successfully completed, the restructuring
of the fund will include:
- An amendment to the fund’s declaration of trust to eliminate
the term structure.
- An amendment to the fund’s investment policies to permit
investment in contingent capital securities (“CoCos”).
- An expected increase from current levels in the fund’s use of
leverage.
- A change in the fund’s name to “Nuveen Preferred and Income
Fund” (the fund’s common shares will continue to trade on the New
York Stock Exchange under the current ticker symbol).
- A new contractual fee waiver under which Nuveen Fund Advisors,
LLC will waive 50% of its net management fees over the first year
following elimination of the term structure.
The fund’s restructuring is intended to improve the fund’s net
earnings and allow for the potential for increased monthly
distributions to common shareholders.
The fund will declare its regular monthly distribution according
to a modified schedule. The following dates will apply to the
fund’s February monthly distribution:
Record Date
February 25, 2022
Ex-Dividend Date
February 24, 2022
Payable Date
March 1, 2022
Shareholders participating in the tender offer will not receive
the February 2022 monthly distribution on tendered shares.
This announcement is not a recommendation, an offer to purchase
or a solicitation of an offer to sell shares of the fund. The fund
has not yet commenced the tender offer described in this release.
Any tender offer will be made only by an offer to purchase, a
related letter of transmittal and other documents that will be
filed with the Securities and Exchange Commission (SEC) as exhibits
to a tender offer statement on Schedule TO and will be available
free of charge at the SEC’s website at www.sec.gov. Common
shareholders should read the fund’s offer to purchase and tender
offer statement on Schedule TO and related exhibits when those
documents are filed and become available as they will contain
important information about the fund’s tender offer. The fund will
also make available, without charge, its offer to purchase and
letter of transmittal.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $65
billion of assets under management across 62 CEFs as of 30
September 2021. The funds offer exposure to a broad range of asset
classes and are designed for income-focused investors seeking
regular distributions. Nuveen has over 30 years of experience
managing CEFs.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds
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 $1.2 trillion in assets under management as
of 30 September 2021 and operations in 27 countries. Its investment
specialists 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.
Nuveen Securities, LLC, member FINRA and SIPC.
The information contained on the Nuveen website is not a part of
this press release.
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;
• the satisfaction of conditions for completing the tender
offer; 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
undertake no responsibility to update publicly or revise any
forward-looking statements.
The annual and semi-annual reports and other regulatory filings
of 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/cef and may
discuss the above-mentioned or other factors that affect Nuveen
closed-end funds. The information contained on the Nuveen website
is not a part of this press release.
EPS-1995370PR-E0122X
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