Nuveen Floating Rate Income Fund (NYSE: JFR) announced the preliminary results of its rights offering, which expired on February 19, 2025. The offering allowed rights holders to subscribe for up to 26,911,238 additional common shares at $8.20 per share, equal to 90% of the Fund's net asset value per share at the close of trading on the expiration date. The gross proceeds are expected to be approximately $220.7 million, including oversubscription requests and notices of guaranteed delivery.
Although the offering was over-subscribed, the Fund will not exercise the secondary over-subscription privilege. Instead, the available primary over-subscription shares will be allocated pro-rata among fully exercising record date shareholders who over-subscribed. Excess payments will be returned to investors who submitted over-subscription requests.
The common shares are expected to be issued around February 25, 2025. The final subscription price is lower than the original estimate, and any excess payments will be returned to subscribing rights holders promptly. Investors are advised to read the Fund's prospectus supplement and accompanying prospectus for detailed information.
Nuveen Floating Rate Income Fund (NYSE: JFR) has announced a rights offering allowing current shareholders to purchase additional common shares at a discount. The Board approved issuing transferable rights to common shareholders as of January 21, 2025, with a 1-for-5 subscription ratio. The subscription price will be 95% of the average closing price over five trading days, with a minimum of 90% of NAV.
The offering aims to increase fund assets to capitalize on investment opportunities, particularly in senior loans priced below par. Key benefits include tax-efficient portfolio expansion, enhanced trading liquidity, and potential expense ratio reduction through a larger asset base. Rights will be tradeable on NYSE under symbols 'JFR RTWI' (when-issued) and 'JFR RT', with the offering expiring on February 19, 2025.
Record date shareholders who fully exercise their rights can participate in an over-subscription privilege for any remaining shares, subject to pro-rata allocation if oversubscribed.