Company: NMZ
Filing Date: 2025-09-29
Form Type: N-14 8C
Source: 0001999371-25-014188
Chunk: 77

Company: NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
Filing Date: 2025-09-29
Form: N-14 8C
Chunk 77
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. state or territory, is not subject to similar single state risk.

In its review, each
Board considered the impact of the Merger on its Fund’s portfolio, including any shifts in quality and yield. In this regard, each
Target Board considered that a greater percentage of the Acquiring Fund’s portfolio may be allocated to lower rated municipal securities
relative to the amount permitted by the policies of the respective Target Fund and that investments in lower rated securities are subject
to higher risks than investments in higher rated securities. Each Target Board further considered the significantly larger asset size
of the Acquiring Fund compared to that of its Target Fund. Each Target Board noted that its respective Target Fund would lose the benefit
of the state tax exemption as a result of the Merger, but recognized the potential for higher common share net earnings and distribution
levels of the combined fund as a result of, among other things, the Acquiring Fund’s ability to invest to a greater degree in lower rated
securities and a geographically diverse national portfolio, as well as certain operating economies from the combined fund’s greater
scale following the Mergers. Further, in comparison to the respective Target Fund, each Target Board considered the increased portfolio
and leverage management flexibility afforded by the significantly larger asset base of the combined fund and the Acquiring Fund’s
national mandate with greater flexibility to invest in lower rated securities.

The Boards considered
that each Fund may use leverage through a number of methods, including through the issuance of preferred shares and investments in inverse
floating rate securities. In the regard, the Board considered, among other things, that New Jersey Municipal has three series of VRDP
Shares outstanding, Pennsylvania Municipal has two series of VRDP Shares outstanding, and Missouri Municipal has one series of MFP Shares
outstanding. The Acquiring Fund also has three series of VMTP Shares outstanding. The preferred shares of the Acquiring Fund are expected
to remain outstanding following the Merger(s). With respect to holders of preferred shares of the Target Funds, each Target Board considered
that upon the closing of its Merger, the holders of each series of preferred shares of the respective Target Fund outstanding immediately
prior to the closing will receive, on a one-for-one basis, newly issued preferred shares of the Acquiring Fund having substantially similar
terms to those of the corresponding series of preferred shares of the Target Fund currently held by such holders (subject to an exception
for terms applicable to the Target Funds’ preferred shares that required an additional payment to holders subject to the specified