American Municipal Income Portfolio Inc., Minnesota Municipal Income Portfolio Inc. & First American Minnesota Municipal Inco...
April 01 2014 - 4:30PM
Business Wire
American Municipal Income Portfolio Inc. (NYSE: XAA), Minnesota
Municipal Income Portfolio Inc. (NYSE MKT: MXA) and First American
Minnesota Municipal Income Fund II, Inc. (NYSE MKT: MXN) (each a
“Fund” and, collectively, the “Funds”) today announced that
each Fund has issued Variable Rate MuniFund Term Preferred Shares
(VMTP) through private placements with qualified institutional
buyers, as defined pursuant to Rule 144A under the Securities Act
of 1933. The proceeds of the preferred share issuances for each
Fund will be used to redeem all of each Fund’s outstanding
respective auction rate or remarketed preferred stock, as
applicable (“ARPs”) as previously announced.
VMTP Share Issuance Details:
Term
VMTP Issuance
Redemption
Fund Amount ($mm)
Date
American Municipal Income Portfolio
Inc.
$43.5
5/1/2017
Minnesota Municipal Income Portfolio
Inc.
$31.1 5/1/2017 First American Minnesota
Municipal Income Fund II, Inc. $13.0
5/1/2017
VMTP dividends will be set weekly at a spread to the Securities
Industry and Financial Markets Association Municipal Swap Index
(SIFMA) and are preferred securities that are senior, with priority
in all respects, to shares of each Fund’s common stock in
liquidation and as to payments of dividends. The initial spread to
SIFMA is 0.95% and is subject to increase under certain
circumstances. The VMTP shares are equal in priority to each Fund’s
ARPs.
The proceeds of the completed VMTP issuances will be deposited
in trust with Bank of New York Mellon, as agent for the ARPs that
are to be redeemed. This deposit will be held for the benefit of
the ARPs’ stockholders and those shares will be redeemed in early
May 2014. Official notification of the redemption will be delivered
to ARPs’ stockholders through The Depository Trust Company
(DTC).
No VMTP shares have been registered under the Securities Act
of 1933 (the Securities Act) or any state securities laws. Unless
so registered, no VMTP 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.
For more information about the Funds, visit
www.firstamericanfunds.com or call 800.677.3863.
Minneapolis-based U.S. Bancorp Asset Management, Inc. serves as
investment advisor to the First American Closed-End Funds. A
subsidiary of U.S. Bank National Association, U.S. Bancorp Asset
Management focuses on providing investment management services to
institutional clients, including corporations, public entities and
nonprofits. It has combined assets under management of more than
$52 billion as of February 28, 2014. First American Closed-End
Funds are subadvised by Nuveen Fund Advisors, Inc. and Nuveen Asset
Management, LLC.
Investment products, including shares of closed-end funds, are
not obligations of, or guaranteed by, any bank, including U.S. Bank
or any U.S. Bancorp affiliate, nor are they insured by the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any
other agency. An investment in such products involves investment
risk, including possible loss of principal.
Please remember, you could lose money with this investment.
Neither safety of principal nor stability of income is guaranteed.
Past performance does not guarantee future results.
U.S. Bank National Association is a separate entity and wholly
owned subsidiary of U.S. Bancorp, the fifth-largest commercial bank
in the United States, and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit
U.S. Bancorp on the web at www.usbank.com.
U.S. Bancorp Asset Management, Inc.Investor Services,
800-677-3863
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