Nuveen Virginia Fund Proposes Merger into Acquiring Fund
Nuveen Virginia Quality Municipal Income Fund (NPV) is proposing a merger with Nuveen Minnesota Quality Municipal Income Fund (NMS) into Nuveen Municipal Credit Income Fund (Acquiring Fund). The Board unanimously recommends the merger, citing potential benefits for common shareholders including higher net earnings, improved liquidity, greater portfolio flexibility, and lower operating expenses due to increased scale. Preferred shareholders will receive new preferred shares with substantially similar terms, though a state-specific tax gross-up provision will be removed, which is not expected to impact current institutional holders. The mergers are anticipated to be tax-free reorganizations for preferred shareholders and are expected to close around October 5, 2026, following shareholder approval at Special Meetings on September 24, 2026.
Key Highlights
- Nuveen Virginia Quality Municipal Income Fund (NPV) proposes merger into Nuveen Municipal Credit Income Fund.
- Board unanimously recommends voting FOR the merger proposal.
- Merger aims for higher common share net earnings, increased liquidity, and lower operating expenses.
- Preferred shareholders to receive new preferred shares with similar terms, but without state-specific tax gross-up.
- Merger expected to increase scale for Target Funds and incrementally for Acquiring Fund.
- Leverage ratios for Target Fund preferred shareholders will increase slightly, but asset coverage will improve.
- Merger costs will be borne by the Funds (common shareholders), not preferred shareholders.
- Merger expected to be a tax-free reorganization for preferred shareholders.
- Special Meetings for shareholders to vote on September 24, 2026.
- Mergers expected to take effect on or about October 5, 2026.
Price Impact