Nuveen Investments, a global provider of investment services to institutions as well as individual investors, announced distributions for the Muni-Term Preferred (MTP) shares of two Pennsylvania municipal closed-end funds related to a previously announced reorganization.
In a release on February 4, the Company noted that the shareholders of Nuveen Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund, Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 and Nuveen Pennsylvania Investment Quality Municipal Fund, have each approved the reorganization of their fund into a single, larger fund. The reorganization is expected to take place after the close of business on Friday, February 7, effective Monday February 10, with NQP acquiring substantially all of the assets of NPY, NXM and NVY. The goal of this reorganization is to create a single, larger municipal bond fund, with lower operating expenses and increased share trading volume.
The acquired fund MTP shares will be replaced one for one with newly issued shares of MTP from NQP, the acquiring fund, with substantially similar terms. Consequently, the acquired fund MTP series being replaced are declaring final distributions for the period February 1, through February 9, which will be payable March 3. The new MTP series of the acquiring fund will declare a distribution on the effective date of the merger for the period February 10, 2104 through February 28, which, when combined with the distributions will be equal to the shareholders original pre-merger monthly distribution.
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