Nuveen offers to buy 10% of shares of four closed-end municipal funds

By Toni Weeks

San Luis Obispo, Calif., Aug. 18 – Nuveen Investments said that the board of trustees of four of its closed-end funds approved a cash tender offer to purchase up to 10% of the outstanding common shares of each fund.

The four affected funds are the Nuveen Dividend Advantage Municipal Fund 3, the Nuveen Dividend Advantage Municipal Income Fund, the Nuveen Municipal Advantage Fund, Inc. and the Nuveen Quality Income Municipal Fund, Inc.

The price per share will be equal to 98% of the net asset value per share as of the purchase date.

Payment will be made within 75 days after the completion of the funds’ annual shareholder meeting.

If the amount tendered exceeds the 10% per-fund cap, the related fund will purchase shares on a pro rata basis.

The tender offer expires at 5 p.m. ET on Sept. 19.

In connection with the offering, Karpus Management Inc. agreed to vote the shares of each fund for which it has the power to vote in accordance with the recommendation of the board. Karpus also agreed to be bound by some standstill covenants with respect to the funds until Sept. 30, 2017.

Nuveen is a Chicago-based investment services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.