Form 4: TD Discloses NXJ Preferred Share Redemption

Toronto Dominion entities report the redemption of Variable Rate Demand Preferred Shares in Nuveen New Jersey Quality Municipal Income Fund.

Summary

• Toronto Dominion Investments LLC (TDI) redeemed 810 Variable Rate Demand Preferred Shares (VRDP Shares) from the Nuveen New Jersey Quality Municipal Income Fund (NXJ).
• The redemption occurred on April 6, 2026, with a total redemption price of $100,048.81516 per share.
• This price includes a liquidation preference of $100,000.00 per share and accrued dividends of $48.81516 per share.
• The filing is a joint statement by The Toronto-Dominion Bank (TD Bank), TDI, Toronto Dominion Holdings (U.S.A.), Inc. (TDH), and TD Group US Holdings LLC (TD GUS).
• TDI is a wholly owned indirect subsidiary of TD Bank, with TDH owning TDI and TD GUS owning TDH.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily reports a completed transaction (redemption) without providing new strategic information or performance indicators.

Positives

• The redemption was executed at a price that included accrued dividends, indicating a full return of capital plus earnings.
• The transaction was completed as per the terms of the preferred shares, suggesting no disputes or unexpected outcomes.

Negatives

• The disposal of a significant block of preferred shares by a major holder like Toronto Dominion could signal a strategic shift or a lack of confidence in the fund's future performance, though this is not explicitly stated.

Risks

• While not explicitly stated as a risk in this filing, the redemption of preferred shares by a significant holder could potentially impact the market perception or liquidity of the remaining shares in the Nuveen New Jersey Quality Municipal Income Fund.

Future Outlook

This filing pertains to a past transaction (redemption) and does not contain forward-looking statements or guidance regarding the future performance of the Nuveen New Jersey Quality Municipal Income Fund or the reporting entities.

Management Comments

• Each reporting person declares that neither the filing of this statement nor anything herein shall be construed as an admission that such person is, for the purposes of Section 13(d) of the US Securities Exchange Act of 1934 or any other purpose, (i) acting (or has agreed or is agreeing to act together with any other person) as a partnership, limited partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Issuer or otherwise with respect to the Issuer or any securities of the Issuer or (ii) a member of any group with respect to the Issuer or any securities of the Issuer.

Industry Context

StockSavvy.ai notes that the redemption of preferred shares by a major financial institution like Toronto Dominion from a municipal income fund like NXJ is a common occurrence, often driven by portfolio management decisions, yield curve dynamics, or regulatory considerations. Such actions can sometimes signal shifts in investor sentiment towards specific asset classes or funds.

Stakeholder Impact

• Shareholders of NXJ may observe a change in the ownership structure of preferred shares, though the impact on common shareholders is likely minimal unless it affects fund management or liquidity.
• Creditors and counterparties of Toronto Dominion entities are informed of the disposition of assets, which is standard financial reporting.

Next Steps

• No specific next steps are outlined in this filing for the reporting persons or the issuer.

Key Dates

Keywords

NXJ, Nuveen New Jersey Quality Municipal Income Fund, Toronto Dominion, Preferred Shares, Redemption, SEC Form 4, Beneficial Ownership, Variable Rate Demand Preferred Shares