Cases & Deals

Major financial institution purchases "termed-out" VRDP Shares in private placement by Nuveen closed-end municipal bond fund

Clients Major financial institution

Jones Day advised a major financial institution in connection with the purchase of $201 million "termed-out" Variable Rate Demand Preferred Shares (VRDP) in a private placement by a Nuveen closed-end municipal bond fund. The VRDP Shares were issued subject to an initial special rate period of approximately three years. At the end of the special rate period, the issuer may elect to establish another special rate period or transition the "termed-out" VRDP Shares to a Rule 2a-7 money market fund eligible instrument, similar to typical VRDP Shares, with the initial purchaser of the "termed-out" VRDP Shares, or other financial institution, acting as liquidity provider and remarketing agent. The proceeds of the issuance were used to redeem existing MTP and VMTP Shares of the issuer.