Nuveen completes New York state municipal bond closed-end funds merger

By Toni Weeks

San Luis Obispo, Calif., March 11 - Nuveen Investments announced that the merger of some of its New York state municipal bond closed-end funds was completed prior to opening of business on March 11.

According to a press release, five New York funds were acquired in a tax-free transaction by the Nuveen New York AMT-Free Municipal Income Fund based upon each of the funds' closing net asset values as of March 8. The funds that were acquired and the exchange ratios at which common shares of each fund were exchanged for the acquiring fund are as follows:

• Nuveen New York Quality Income Municipal Fund, Inc., 1.034102;

• Nuveen New York Premium Income Municipal Fund, Inc., 1.046608;

• Nuveen New York Investment Quality Municipal Fund, Inc., 1.034630;

• Nuveen New York Select Quality Municipal Fund, Inc., 1.055839; and

• Nuveen New York Dividend Advantage Municipal Income Fund, 1.031876.

In addition, variable MuniFund Term Preferred (VMTP) and Variable Rate Demand Preferred (VRDP) shareholders of each of the five acquired funds received an equivalent number of newly issued VMTP and VRDP shares from the acquiring fund, with substantially the same terms as their previous VMTP and VRDP shares.

As previously reported, the board of trustees of Nuveen's municipal closed-end funds approved the mergers in June 2012, saying that the reorganizations would eliminate overlapping products, result in lower operating expenses and fees per common share, enhance the secondary trading market for the shares and increase flexibility in managing the structure and costs of leverage over time.

The funds have similar investment objectives, policies and risks and are managed by the same portfolio manager, Scott R. Romans.

The closing of each reorganization was contingent upon shareholder approval and the closing of all of the reorganizations, which has been satisfied.

Chicago-based Nuveen Fund Advisors, Inc. is the investment adviser to the funds.

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