Nuveen Fund Board Approves Closed-End Fund Merger
March 02 2018 - 4:15PM
Business Wire
The Board of Trustees of Nuveen Build America Bond Fund (NYSE:
NBB) and Nuveen Build America Bond Opportunity Fund (NYSE: NBD)
have approved a proposal to merge NBD into NBB (the “Merger”). As
part of the proposal, the Board also approved the elimination of
NBB’s contingent term policy. Both of these changes require
shareholder approval. If each fund obtains the necessary
shareholder approvals at its annual shareholder meeting to be held
later this year, shareholders of the combined fund who do not wish
to maintain their investment in the combined fund will be given an
opportunity following completion of the Merger to sell a portion of
their investment in the combined fund at net asset value, less a
small repurchase fee.
In addition, the Board approved the expansion of NBB’s
investment policy of investing at least 80% of its Managed Assets
in Build America Bonds (“BABs”) to investing at least 80% of its
Managed Assets in all types of taxable municipal securities,
including BABs. NBB would at the same time change its name to
Nuveen Taxable Municipal Income Fund.
The proposal is intended to benefit shareholders in a number of
ways, including continued ownership through the combined fund of
scarce Build America Bonds with above-market purchase yields, the
potential for meaningfully higher common net earnings and avoidance
of sizeable capital gain distributions that would result upon
termination of the funds.
More information on the proposal will be contained in proxy
materials expected to be filed in the near future.
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 $970 billion in assets under management as of
12/31/17 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.
The funds expect to file solicitation materials in the form of a
joint proxy statement/prospectus that will be included in a
registration statement on Form N-14 in connection with the
proposed reorganization and elimination of NBB’s fundamental
policy. Investors are urged to read the joint proxy
statement/prospectus and any other relevant documents when they
become available because they will contain important information
about the proposals. After they are filed, free copies of the joint
proxy statement/prospectus will be available on the SEC’s web site
at www.sec.gov.
This communication is not a solicitation of a proxy from any
fund shareholder. The funds, Nuveen Fund Advisors, LLC, the funds’
investment adviser, and certain of their respective
directors/trustees, officers and affiliates may be deemed under the
rules of the SEC to be participants in the solicitation of proxies
from shareholders in connection with the proposals. Information
about the directors/trustees and officers of the funds may be found
in their respective annual reports and annual proxy statements
previously filed with the SEC and will be contained in the joint
proxy statement/prospectus when available.
FORWARD LOOKING STATEMENTS
Certain statements made or referenced in this release may be
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.
439431-INV-O-02/20
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NuveenKristyna Munoz254-644-1615kristyna.munoz@nuveen.com
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