Nuveen California AMT-Free Municipal Income Fund Issues VRDP Shares

CHICAGO--()--Nuveen, an operating division of TIAA Global Asset Management, today announced that Nuveen California AMT-Free Municipal Income Fund (NYSE: NKX) has issued Variable Rate Demand Preferred Shares (VRDP) through a private placement with qualified institutional buyers, as defined in Rule 144A under the Securities Act of 1933. The proceeds from the issuance will be used to permit NKX to invest in additional municipal securities in accordance with its investment objectives and policies and to pay costs associated with the transaction.

VRDP issuance details are as follows:

Fund       Ticker      



VRDP Issuance
Amount ($MM)



Nuveen California
Municipal Income

      NKX       Series 6       1,050       $105.000      

Sumitomo Mitsui


The new NKX VRDP shares include a liquidity feature that allows holders of the VRDP shares to have their shares purchased from funds provided by a liquidity provider through a letter of credit in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. These VRDP shares qualify as equity for income tax purposes. This treatment affords VRDP share dividends the same tax treatment as the income on the fund's underlying investments, notwithstanding the VRDP terms that require the fund to redeem VRDP shares still owned by or on behalf of the liquidity provider if there are six months of continuous, unsuccessful remarketing.

VRDP dividends are set weekly at a rate established by the fund's remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.

No VRDP shares have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, no VRDP shares may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

Nuveen provides investment solutions designed to help secure the long-term goals of individual investors and the advisors who serve them. Through the investment expertise of leading asset managers across traditional and alternative asset classes, Nuveen is committed to delivering consultative guidance that aligns with client needs. Funds are distributed by Nuveen Securities, LLC, a subsidiary of Nuveen Investments, Inc. Nuveen is an operating division of TIAA Global Asset Management. For more information, please visit the Nuveen website at

The information contained on the Nuveen website is not a part of this press release.


Certain statements made or referenced in this release may be forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to:

  • market developments;
  • legal and regulatory developments; and
  • other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.

This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the fund’s common and preferred shareholders have been informed of the fund’s issuance of VRDP.



Kristyna Munoz
(312) 917-8343


Kristyna Munoz
(312) 917-8343