Nuveen Intermediate Duration Municipal Term Fund and Nuveen Intermediate Duration Quality Municipal Term Fund Announce Liquidation Details
January 26 2023 - 3:15PM
Business Wire
The Board of Trustees of Nuveen Intermediate Duration Municipal
Term Fund (NYSE: NID) and Nuveen Intermediate Duration Quality
Municipal Term Fund (NYSE: NIQ) have approved the liquidation of
each fund upon the fund’s originally scheduled termination date.
NID intends to liquidate on or before March 31, 2023, and NIQ
intends to liquidate on or before June 30, 2023.
The Board of Trustees of each fund have elected not to proceed
with a restructuring proposal previously approved by shareholders
on October 12, 2022. The restructuring would have eliminated the
termination dates for each fund, subject to various conditions
including the successful completion of a tender offer for 100% of
each fund’s outstanding common shares at net asset value. Each fund
owns certain securities which, because of a significant increase in
value, have grown to constitute a significant percentage of each
fund’s common assets (approximately 12.6% of NID and 4.3% of NIQ as
of January 24, 2023). These securities are currently illiquid and
likely cannot be sold to generate proceeds needed to satisfy
tendering shareholders. This caused the Board of each fund to
conclude that, if either fund were to engage in a tender offer, the
concentration of illiquid securities in the fund after such a
tender would be unreasonably large and that neither fund would
likely retain sufficient size after a tender to remain viable.
Therefore, each Board determined that liquidation and closure, on
its originally scheduled termination date, is in the best interest
of each fund and its shareholders.
As the funds approach their respective termination dates, each
fund will begin the orderly liquidation of its assets. As a fund’s
portfolio securities are sold, the fund may deviate from its
investment objective and policies. Any securities that cannot be
sold within a reasonable period of time by a fund will be
contributed to a liquidating trust. The liquidating trust is
intended to provide an orderly disposition of such illiquid
assets.
Upon termination, each fund anticipates distributing to all fund
shareholders (i) cash raised from the sale of portfolio securities
and (ii) interests in the liquidating trust equal in relative
proportion to the percentage of the outstanding shares owned by a
shareholder on the liquidation date. Interests in the liquidating
trust will not trade on an exchange and may not be sold or
transferred, except as permitted by applicable law. The liquidating
trust will subsequently distribute cash proceeds in one or more
payments as the securities in the liquidating trust can be sold or
otherwise liquidated. The timing of when cash distributions will be
made from the liquidating trust cannot be predicted. Shareholders
may recognize a gain or loss for U.S. tax purposes as a result of
the liquidation. Nuveen does not provide tax advice; investors
should consult a professional tax advisor regarding their specific
tax situation.
As NID and NIQ approach liquidation, each fund’s common shares
will continue trading on the New York Stock Exchange. NID common
shares will be suspended from trading before the open of trading on
March 27, 2023. NIQ common shares will be suspended from trading
before the open of trading on June 26, 2023.
Nuveen is a leading sponsor of closed-end funds (CEFs) with $54
billion of assets under management across 55 CEFs as of 31 Dec
2022. The funds offer exposure to a broad range of asset classes
and are designed for income-focused investors seeking regular
distributions. Nuveen has more than 35 years of experience managing
CEFs.
For more information, please visit Nuveen’s CEF homepage
www.nuveen.com/closed-end-funds or contact:
Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
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 $1.1 trillion in assets under management as
of 31 Dec 2022 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 herein 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; and
- other additional risks and uncertainties.
EPS-2703352PR-E0123W
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version on businesswire.com: https://www.businesswire.com/news/home/20230126005893/en/
Financial Professionals: 800-752-8700
Investors: 800-257-8787
Media: media-inquiries@nuveen.com
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