Nuveen has successfully completed the initial public offering of
the Nuveen Credit Opportunities 2022 Target Term Fund. The new
closed-end fund’s investment objectives are to provide a high level
of current income and return the original net asset value of $9.85
per common share on or about its Termination Date of June 1, 2022.
The fund seeks to achieve its investment objectives by investing at
least 80% of is managed assets in corporate debt securities
(including bonds and senior loans), and separately at least 80% in
securities rated below investment grade at the time of investment.
The fund will begin trading on the New York Stock Exchange (NYSE)
today, under the symbol JCO.
The fund raised approximately $255 million (before deduction of
the sales load and offering expenses payable by the fund) in its
common share offering, excluding any exercise of the underwriters’
option to purchase additional shares. If the underwriters exercise
that option in full, the fund will have raised approximately $291.8
million.
Nuveen Fund Advisors, LLC, a subsidiary of Nuveen, is the fund’s
investment adviser, responsible for the fund’s overall investment
strategy and its implementation, including the use of leverage.
Symphony Asset Management, an affiliate of Nuveen, is the fund’s
subadviser, responsible for investing the fund’s assets. The lead
managers of the underwriting syndicate were Morgan Stanley, UBS
Investment Bank, Wells Fargo Securities and Nuveen Securities.
Shares of closed-end investment companies, like the fund,
usually trade on a national stock exchange. Similar to stocks, the
fund’s share price will fluctuate with market conditions and, at
the time of sale, may be worth more or less than the original
investment. Shares of closed-end funds often trade at a discount to
their net asset value.
About Nuveen
Nuveen offers a comprehensive range of outcome-focused
investment solutions designed to secure the long-term financial
goals of institutional and individual investors. As the investment
management arm of TIAA, Nuveen has $882 billion in assets under
management as of 12/31/16 and operations in 16 countries. Its
affiliates offer deep expertise across a comprehensive range of
traditional and alternative investments through a wide array of
vehicles and customized strategies. For more information, please
visit www.nuveen.com.
The information contained on the Nuveen website is not a part of
this press release.
Securities offered through Nuveen Securities, LLC, Member FINRA
and SIPC.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of the fund
carefully before investing. For a prospectus which contains this
and other information relevant to an investment in the fund, please
contact your securities representative or Nuveen Securities, LLC,
333 W. Wacker Drive, Chicago, IL 60606. Investors should read the
prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not
soliciting an offer to buy securities in any jurisdiction where the
offer or sale is not permitted.
Key Risk Considerations:
Investment and Market Risk. An investment in Common
Shares is subject to investment risk, including the possible loss
of the entire principal amount that you invest. Your investment in
Common Shares represents an indirect investment in the securities
owned by the Fund. Your Common Shares at any point in time may be
worth less than your original investment, even after taking into
account the reinvestment of Fund dividends and distributions.
Five-Year Term Risk. Because the assets of the Fund will
be liquidated in connection with its termination, the Fund may be
required to sell portfolio securities when it otherwise would not,
including at times when market conditions are not favorable, or at
a time when a particular security is in default or bankruptcy, or
otherwise in severe distress, which may cause the Fund to lose
money. Although the Fund has an investment objective of returning
the Fund’s original NAV of $9.85 (the “Original NAV”) to Common
Shareholders on or about the Termination Date, the Fund may not be
successful in achieving this objective. The return of Original NAV
is not an express or implied guarantee obligation of the Fund.
There can be no assurance that the Fund will be able to return
Original NAV to Common Shareholders, and such return is not backed
or otherwise guaranteed by Nuveen or any other entity.
Senior Loan Risk. Senior loans hold the highest priority
in the capital structure of a business entity, are typically
secured with specific collateral and have a claim on the assets
and/or stock of the issuer that is senior to that held by
subordinated debt holders and stockholders of the issuer. Senior
loans that the Fund intends to invest in are usually rated below
investment grade, and share the same risks of other below
investment grade debt instruments.
Although the Fund may invest in senior loans that are secured by
specific collateral, there can be no assurance the liquidation of
such collateral would satisfy an issuer’s obligation to the Fund in
the event of issuer default or that such collateral could be
readily liquidated under such circumstances. If the terms of a
senior loan do not require the issuer to pledge additional
collateral in the event of a decline in the value of the already
pledged collateral, the Fund will be exposed to the risk that the
value of the collateral will not at all times equal or exceed the
amount of the issuer’s obligations under the senior loan.
Debt Securities Risk. Issuers of debt instruments in
which the Fund may invest may default on their obligations to pay
principal or interest when due. This non-payment would result in a
reduction of income to the Fund, a reduction in the value of a debt
instrument experiencing non-payment and, potentially, a decrease in
the NAV of the Fund. There can be no assurance that liquidation of
collateral would satisfy the issuer’s obligation in the event of
non-payment of scheduled interest or principal or that such
collateral could be readily liquidated. In the event of bankruptcy
of an issuer, the Fund could experience delays or limitations with
respect to its ability to realize the benefits of any collateral
securing a security. To the extent that the credit rating assigned
to a security in the Fund’s portfolio is downgraded, the market
price and liquidity of such security may be adversely affected.
Below Investment Grade Risk. Securities of below
investment grade quality are regarded as having speculative
characteristics with respect to the issuer’s capacity to pay
interest and repay principal, and may be subject to higher price
volatility and default risk than investment grade securities of
comparable terms and duration. Issuers of lower grade securities
may be highly leveraged and may not have available to them more
traditional methods of financing. The prices of these lower grade
securities are typically more sensitive to negative developments,
such as a decline in the issuer’s revenues or a general economic
downturn. The secondary market for lower rated securities may not
be as liquid as the secondary market for more highly rated
securities, a factor which may have an adverse effect on the Fund’s
ability to dispose of a particular security. If a below investment
grade security goes into default, or enters bankruptcy, it may be
difficult to sell that security in a timely manner at any
reasonable price.
Interest Rate Risk. Generally, when market interest rates
rise, bond prices fall, and vice versa. Interest rate risk is the
risk that the debt securities in the Fund’s portfolio will decline
in value because of increases in market interest rates. As interest
rates decline, issuers of debt securities may prepay principal
earlier than scheduled, forcing the Fund to reinvest in
lower-yielding securities and potentially reducing the Fund’s
income. As interest rates increase, slower than expected principal
payments may extend the average life of securities, potentially
locking in a below-market interest rate and reducing the Fund’s
value. In typical market interest rate environments, the prices of
longer-term debt securities generally fluctuate more than prices of
shorter-term debt securities as interest rates change. As the Fund
initially will invest in intermediate-term securities, the Common
Share NAV and market price per share will fluctuate more in
response to changes in market interest rates than if the Fund
invested primarily in short-term securities. These risks may be
greater in the current market environment because, as of the date
of the prospectus, certain interest rates are at or near historic
lows. The Federal Reserve recently raised the federal funds rate,
and has indicated that it may continue to do so. Therefore, there
is a risk that interest rates will rise, which will likely drive
down bond prices.
For additional detailed risk information, please refer to the
fund’s prospectus or visit the fund’s webpage at
www.nuveen.com.
Distributions: Fund distributions are expected to be sourced
entirely from net investment income.
23761-INV-O-03/19
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version on businesswire.com: http://www.businesswire.com/news/home/20170329005669/en/
NuveenMEDIA CONTACT:Mary Ellen
Higgins617-788-5818maryellen.higgins@nuveen.com
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