2 Nuveen Taxable Closed-End Funds Announce Refinancing
Published May 17th, 2008
CHICAGO - Two taxable closed-end funds sponsored by Nuveen Investments, Nuveen Floating Rate Income Fund (NYSE: JFR) and Nuveen Floating Rate Income Opportunity Fund (NYSE: JRO), today announced refinancing plans involving $375 million in auction-rate preferred securities (ARPS). The refinancings for JFR and JRO are expected to lower the relative costs of leverage for each fund over time while also providing liquidity at par for the holders of a portion of the funds’ ARPS in JFR and JRO. The funds’ Board of Trustees has approved each refinancing.
As part of the refinancings, the securities will be redeemed as follows: $235 million of $400 million ARPS in JFR (approximately 59%) and $140 million of $240 million ARPS in JRO (approximately 59%). As noted in previous announcements, funds redeeming less than all of their outstanding ARPS will redeem securities on a pro rata basis by series. The Depository Trust Company (DTC), the securities’ holder of record, determines how a partial series redemption will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn determines how redeemed shares are allocated among its underlying beneficial owners. The procedures used by different broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
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