Several Nuveen closed-end funds plan to register new form of preferreds

By Jennifer Chiou

New York, March 5 - Nuveen Investments announced that several Nuveen municipal bond closed-end funds intend to file registration statements to issue municipal term preferred shares, a new form of preferred security.

This is subject to approval by the funds' board of trustees.

Nuveen said that the municipal term preferreds would be designed as a fixed-rate form of preferred stock with a mandatory redemption period ranging from three to six years or longer, permitting Nuveen closed-end funds to refinance outstanding auction-rate preferred securities and also to achieve shorter-term fixed-rate leverage financing.

These shares would not require bank liquidity or credit enhancement and would be considered equity investments for tax purposes, according to a news release.

The funds intend to file registration statements before early April.

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