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Fitch: Minimal Impact on Nuveen CEFs from TIAA Acquisition
April 15, 2014 / 5:01 PM / 3 years ago

Fitch: Minimal Impact on Nuveen CEFs from TIAA Acquisition

(The following statement was released by the rating agency) NEW YORK, April 15 (Fitch) TIAA-CREF's planned acquisition of Nuveen Investments (Nuveen) will have a minimal impact on Nuveen's closed-end fund business and credit ratings on Nuveen's closed-end fund preferred securities will be unaffected, according to Fitch Ratings. Each of the Nuveen closed-end funds rated by Fitch is a Registered Investment Company, as defined under the 1940 Act and operates as an independent entity, with boards of directors that are separate from that of Nuveen. Since the ratings are based primarily on the structural protections and asset coverage available to preferred shareholders as well as the capabilities of Nuveen as an investment advisor, Fitch does not expect to take any rating actions on the preferred stock issued by the closed-end funds as a result of the acquisition. Fitch rates $8.9 billion of preferred stock issued by 52 Nuveen closed-end funds, with $30.1 billion of assets under management. On April 14, 2014, TIAA-CREF announced an agreement to acquire Nuveen for $6.25 billion, inclusive of Nuveen's outstanding debt. The boards of directors at both TIAA-CREF and Nuveen each have approved the transaction, which is expected to be complete by year-end 2014. The boards of directors and shareholders of Nuveen's closed-end funds also have to approve the transaction. It is expected that Nuveen will operate as a separate and independent subsidiary within TIAA-CREF's asset management business and continue its present operating model. The investment teams at both organizations are expected to remain separate. Leadership across Nuveen and its investment affiliates are expected to remain intact, with Nuveen management teams retaining their current roles. Contact: Ralph Aurora Senior Director Financial Institutions +1 212 908-0528 Greg Fayvilevich Director Fund & Asset Management +1 212-908-9151 Kellie Geressy-Nilsen Senior Director Fitch Wire +1 212 908-9123 Fitch Ratings, Inc. One State Street Plaza New York, NY 10004 Media Relations: Alyssa Castelli, New York, Tel: +1 (212) 908 0540, Email: alyssa.castelli@fitchratings.com. Additional information is available on www.fitchratings.com. The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at www.fitchratings.com. All opinions expressed are those of Fitch Ratings. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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