UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-23195
Nuveen Credit Opportunities 2022 Target Term Fund
(Exact name of registrant as specified in charter)
333 West Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Gifford R. ZimmermanVice President and Secretary
333 West Wacker Drive, Chicago, Illinois 60606
(Name and address of agent for service)
Registrants telephone number, including area code: 312-917-7700
Date of fiscal year end: December 31
Date of reporting period: September 30, 2018
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (OMB) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Schedule of Investments
JCO | Nuveen Credit Opportunities
Portfolio of Investments September 30, 2018 | |
(Unaudited) |
Principal Amount (000) |
Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
LONG-TERM INVESTMENTS 138.7% (100.0% of Total Investments) |
|
|||||||||||||||||||||||||||
CORPORATE BONDS 107.8% (77.7% of Total Investments) |
|
|||||||||||||||||||||||||||
Aerospace & Defense 3.0% | ||||||||||||||||||||||||||||
$ | 3,000 | Bombardier Inc., 144A |
8.750% | 12/01/21 | B | $ | 3,317,550 | |||||||||||||||||||||
3,000 | Bombardier Inc., 144A |
6.000% | 10/15/22 | B | 3,007,500 | |||||||||||||||||||||||
2,000 | DAE Funding LLC, 144A |
4.500% | 8/01/22 | BB+ | 1,950,000 | |||||||||||||||||||||||
8,000 | Total Aerospace & Defense |
8,275,050 | ||||||||||||||||||||||||||
Airlines 0.6% | ||||||||||||||||||||||||||||
1,500 | American Airlines Group Inc., 144A |
4.625% | 3/01/20 | BB | 1,503,750 | |||||||||||||||||||||||
Banks 0.4% | ||||||||||||||||||||||||||||
1,000 | CIT Group Inc. |
4.125% | 3/09/21 | BB+ | 1,003,250 | |||||||||||||||||||||||
Chemicals 5.0% | ||||||||||||||||||||||||||||
2,250 | CF Industries Inc. |
7.125% | 5/01/20 | BB+ | 2,379,375 | |||||||||||||||||||||||
1,500 | Huntsman International LLC |
4.875% | 11/15/20 | BB+ | 1,528,125 | |||||||||||||||||||||||
2,000 | Kissner Group Holdings LP, 144A |
8.375% | 12/01/22 | B | 2,045,000 | |||||||||||||||||||||||
2,000 | Momentive Performance Materials Inc. |
3.880% | 10/24/21 | B | 2,162,500 | |||||||||||||||||||||||
3,500 | Platform Specialty Products Corp, 144A |
6.500% | 2/01/22 | B+ | 3,578,750 | |||||||||||||||||||||||
2,000 | TPC Group Inc., 144A |
8.750% | 12/15/20 | B3 | 1,995,000 | |||||||||||||||||||||||
13,250 | Total Chemicals |
13,688,750 | ||||||||||||||||||||||||||
Commercial Services & Supplies 4.1% | ||||||||||||||||||||||||||||
4,000 | ADT Corporation |
6.250% | 10/15/21 | BB | 4,196,040 | |||||||||||||||||||||||
750 | APX Group Inc. |
8.750% | 12/01/20 | CCC | 750,000 | |||||||||||||||||||||||
4,000 | APX Group Inc. |
7.875% | 12/01/22 | B1 | 4,080,000 | |||||||||||||||||||||||
2,000 | Tervita Escrow Corp, 144A |
7.625% | 12/01/21 | B+ | 2,062,500 | |||||||||||||||||||||||
10,750 | Total Commercial Services & Supplies |
|
11,088,540 | |||||||||||||||||||||||||
Construction & Engineering 0.8% | ||||||||||||||||||||||||||||
2,000 | Great Lakes Dredge & Dock Corp |
8.000% | 5/15/22 | B | 2,055,000 | |||||||||||||||||||||||
Construction Materials 0.5% | ||||||||||||||||||||||||||||
1,431 | Gates Global LLC, 144A |
6.000% | 7/15/22 | B | 1,439,944 | |||||||||||||||||||||||
Consumer Finance 0.8% | ||||||||||||||||||||||||||||
2,000 | Navient Corp |
6.500% | 6/15/22 | BB | 2,077,500 | |||||||||||||||||||||||
Containers & Packaging 1.6% | ||||||||||||||||||||||||||||
4,303 | Cascades Inc., 144A |
5.500% | 7/15/22 | BB | 4,335,272 | |||||||||||||||||||||||
Diversified Consumer Services 0.5% | ||||||||||||||||||||||||||||
1,500 | Harland Clarke Holdings Corp, 144A |
6.875% | 3/01/20 | B+ | 1,486,905 | |||||||||||||||||||||||
Diversified Financial Services 4.4% | ||||||||||||||||||||||||||||
2,000 | Abe Investment Holdings Inc./Getty Images Inc., 144A |
10.500% | 10/16/20 | B3 | 2,075,000 | |||||||||||||||||||||||
2,000 | Avation Capital SA, 144A |
6.500% | 5/15/21 | BB | 2,005,000 | |||||||||||||||||||||||
2,500 | CNG Holdings Inc., 144A |
9.375% | 5/15/20 | CCC+ | 2,450,000 | |||||||||||||||||||||||
3,500 | Jefferies Finance LLC Corporation, 144A |
7.375% | 4/01/20 | BB | 3,556,875 | |||||||||||||||||||||||
1,000 | Ladder Capital Finance Holdings LLLP / Ladder Capital Finance Corp, 144A |
|
5.250% | 3/15/22 | BB | 1,002,500 | ||||||||||||||||||||||
1,000 | Nationstar Mortgage LLC Capital Corporation |
6.500% | 7/01/21 | B+ | 1,001,200 | |||||||||||||||||||||||
12,000 | Total Diversified Financial Services |
12,090,575 |
1
JCO | Nuveen Credit Opportunities 2022 Target Term Fund (continued) | |
Portfolio of Investments September 30, 2018 | ||
(Unaudited) |
Principal Amount (000) |
Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Diversified Telecommunication Services 9.4% | ||||||||||||||||||||||||||||
$ | 4,000 | CenturyLink Inc. |
6.450% | 6/15/21 | BB | $ | 4,150,000 | |||||||||||||||||||||
500 | Cogent Communications Finance Inc., 144A |
5.625% | 4/15/21 | B | 502,500 | |||||||||||||||||||||||
2,225 | Cogent Communications Group Inc., 144A |
5.375% | 3/01/22 | Ba3 | 2,258,375 | |||||||||||||||||||||||
5,000 | Inmarsat Finance PLC, 144A |
4.875% | 5/15/22 | BB+ | 4,975,000 | |||||||||||||||||||||||
10,150 | Intelsat Luxembourg SA |
7.750% | 6/01/21 | Ca | 9,845,500 | |||||||||||||||||||||||
4,000 | Level 3 Parent LLC |
5.750% | 12/01/22 | BB | 4,045,800 | |||||||||||||||||||||||
25,875 | Total Diversified Telecommunication Services |
|
25,777,175 | |||||||||||||||||||||||||
Energy Equipment & Services 5.4% | ||||||||||||||||||||||||||||
8,000 | Bristow Group Inc. |
6.250% | 10/15/22 | B | 5,840,000 | |||||||||||||||||||||||
2,000 | Chesapeake Energy Corp |
6.125% | 2/15/21 | B | 2,046,500 | |||||||||||||||||||||||
3,000 | NGPL PipeCo LLC, 144A |
4.375% | 8/15/22 | BBB | 3,022,500 | |||||||||||||||||||||||
2,000 | Pioneer Energy Services Corp |
6.125% | 3/15/22 | CCC | 1,750,000 | |||||||||||||||||||||||
2,000 | SESI LLC |
7.125% | 12/15/21 | BB | 2,028,000 | |||||||||||||||||||||||
17,000 | Total Energy Equipment & Services |
|
14,687,000 | |||||||||||||||||||||||||
Entertainment 0.8% | ||||||||||||||||||||||||||||
2,000 | Netflix Inc. |
5.500% | 2/15/22 | Ba3 | 2,061,500 | |||||||||||||||||||||||
Equity Real Estate Investment Trusts 2.6% | ||||||||||||||||||||||||||||
4,000 | iStar Inc. |
6.000% | 4/01/22 | BB | 4,030,000 | |||||||||||||||||||||||
3,000 | SBA Communications Corp |
4.000% | 10/01/22 | B+ | 2,943,750 | |||||||||||||||||||||||
7,000 | Total Equity Real Estate Investment Trusts |
|
6,973,750 | |||||||||||||||||||||||||
Food Products 0.4% | ||||||||||||||||||||||||||||
1,000 | B&G Foods Inc. |
4.625% | 6/01/21 | B+ | 998,750 | |||||||||||||||||||||||
Health Care Equipment & Supplies 4.3% | ||||||||||||||||||||||||||||
7,500 | Kinetic Concepts Inc. / KCI USA Inc., 144A |
7.875% | 2/15/21 | B1 | 7,746,000 | |||||||||||||||||||||||
4,000 | Ortho-Clinical Diagnostics Inc., 144A |
6.625% | 5/15/22 | CCC | 3,908,000 | |||||||||||||||||||||||
11,500 | Total Health Care Equipment & Supplies |
|
11,654,000 | |||||||||||||||||||||||||
Health Care Providers & Services 10.9% | ||||||||||||||||||||||||||||
1,000 | Acadia Healthcare Co Inc. |
5.125% | 7/01/22 | B | 997,500 | |||||||||||||||||||||||
3,000 | Centene Corp |
4.750% | 5/15/22 | BB+ | 3,028,500 | |||||||||||||||||||||||
4,000 | Community Health Systems, Inc. |
5.125% | 8/01/21 | B | 3,890,000 | |||||||||||||||||||||||
6,450 | Envision Healthcare Corp |
5.625% | 7/15/22 | B | 6,631,890 | |||||||||||||||||||||||
6,800 | Molina Healthcare Inc. |
5.375% | 11/15/22 | BB | 6,910,500 | |||||||||||||||||||||||
2,000 | Polaris Intermediate Corp, 144A |
8.500% | 12/01/22 | B | 2,066,480 | |||||||||||||||||||||||
6,000 | Tenet Healthcare Corp |
6.000% | 10/01/20 | BB | 6,187,500 | |||||||||||||||||||||||
29,250 | Total Health Care Providers & Services |
|
29,712,370 | |||||||||||||||||||||||||
Hotels, Restaurants & Leisure 5.3% | ||||||||||||||||||||||||||||
2,005 | CCM Merger Inc., 144A |
6.000% | 3/15/22 | B+ | 2,058,052 | |||||||||||||||||||||||
2,750 | Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp, 144A |
6.750% | 11/15/21 | B+ | 2,846,250 | |||||||||||||||||||||||
4,000 | MGM Resorts International |
6.625% | 12/15/21 | BB | 4,238,000 | |||||||||||||||||||||||
5,000 | Scientific Games International Inc. |
10.000% | 12/01/22 | B | 5,297,850 | |||||||||||||||||||||||
13,755 | Total Hotels, Restaurants & Leisure |
|
14,440,152 | |||||||||||||||||||||||||
Household Durables 3.9% | ||||||||||||||||||||||||||||
4,000 | Beazer Homes USA Inc. |
8.750% | 3/15/22 | B3 | 4,230,000 | |||||||||||||||||||||||
6,500 | Lennar Corp |
4.750% | 11/15/22 | BBB | 6,540,625 | |||||||||||||||||||||||
10,500 | Total Household Durables |
10,770,625 | ||||||||||||||||||||||||||
Household Products 0.6% | ||||||||||||||||||||||||||||
2,000 | Revlon Consumer Products Corp |
5.750% | 2/15/21 | CCC | 1,607,500 | |||||||||||||||||||||||
Independent Power & Renewable Electricity Producers 0.7% | ||||||||||||||||||||||||||||
2,000 | AES Corp/VA |
4.000% | 3/13/21 | BB+ | 1,995,000 |
2
Principal Amount (000) |
Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
IT Services 1.1% | ||||||||||||||||||||||||||||
$ | 3,000 | Alliance Data Systems Corp, 144A |
5.375% | 8/01/22 | N/R | $ | 3,022,500 | |||||||||||||||||||||
Machinery 0.7% | ||||||||||||||||||||||||||||
2,000 | CNH Industrial Capital LLC |
4.375% | 4/05/22 | BBB | 2,023,600 | |||||||||||||||||||||||
Media 7.5% | ||||||||||||||||||||||||||||
2,000 | Altice Luxembourg SA, 144A |
7.750% | 5/15/22 | B | 1,946,500 | |||||||||||||||||||||||
5,013 | Cablevision Systems Corp |
5.875% | 9/15/22 | B | 5,110,127 | |||||||||||||||||||||||
4,000 | Cequel Communication Holdings I, 144A |
5.125% | 12/15/21 | B | 4,010,880 | |||||||||||||||||||||||
1,500 | Clear Channel International BV, 144A |
8.750% | 12/15/20 | B+ | 1,548,300 | |||||||||||||||||||||||
5,000 | DISH DBS Corp |
5.875% | 7/15/22 | BB | 4,878,125 | |||||||||||||||||||||||
3,000 | Sirius XM Radio Inc., 144A |
3.875% | 8/01/22 | BB | 2,952,930 | |||||||||||||||||||||||
20,513 | Total Media |
20,446,862 | ||||||||||||||||||||||||||
Metals & Mining 1.0% | ||||||||||||||||||||||||||||
2,900 | First Quantum Minerals Ltd, 144A |
7.250% | 5/15/22 | B | 2,838,375 | |||||||||||||||||||||||
Mortgage Real Estate Investment Trusts 0.7% | ||||||||||||||||||||||||||||
2,000 | Starwood Property Trust Inc. |
5.000% | 12/15/21 | BB | 2,015,000 | |||||||||||||||||||||||
Oil, Gas & Consumable Fuels 12.3% | ||||||||||||||||||||||||||||
4,000 | California Resources Corp |
5.500% | 9/15/21 | CCC | 3,620,000 | |||||||||||||||||||||||
3,500 | Calumet Specialty Products |
6.500% | 4/15/21 | B | 3,482,500 | |||||||||||||||||||||||
4,900 | Calumet Specialty Products |
7.625% | 1/15/22 | B | 4,912,250 | |||||||||||||||||||||||
2,675 | Denbury Resources Inc. |
6.375% | 8/15/21 | CCC+ | 2,608,125 | |||||||||||||||||||||||
3,000 | Denbury Resources Inc. |
5.500% | 5/01/22 | CCC+ | 2,760,000 | |||||||||||||||||||||||
8,600 | FTS International Inc. |
6.250% | 5/01/22 | B | 8,277,500 | |||||||||||||||||||||||
4,000 | Peabody Energy Corp, 144A |
6.000% | 3/31/22 | BB | 4,065,000 | |||||||||||||||||||||||
1,800 | QEP Resources Inc. |
5.375% | 10/01/22 | BB | 1,806,750 | |||||||||||||||||||||||
2,000 | SM Energy Co |
6.125% | 11/15/22 | BB | 2,060,000 | |||||||||||||||||||||||
34,475 | Total Oil, Gas & Consumable Fuels |
|
33,592,125 | |||||||||||||||||||||||||
Pharmaceuticals 3.3% | ||||||||||||||||||||||||||||
4,000 | Bausch Health Cos Inc., 144A |
5.625% | 12/01/21 | B | 3,985,000 | |||||||||||||||||||||||
3,000 | Bausch Health Cos Inc., 144A |
6.500% | 3/15/22 | BB | 3,120,000 | |||||||||||||||||||||||
2,000 | Eagle Holding Co II LLC, 144A |
7.625% | 5/15/22 | CCC+ | 2,025,000 | |||||||||||||||||||||||
9,000 | Total Pharmaceuticals |
9,130,000 | ||||||||||||||||||||||||||
Professional Services 1.4% | ||||||||||||||||||||||||||||
4,000 | Nielsen Finance LLC Co, 144A |
5.000% | 4/15/22 | BB | 3,903,960 | |||||||||||||||||||||||
Road & Rail 1.2% | ||||||||||||||||||||||||||||
3,112 | Herc Rentals Inc., 144A |
7.500% | 6/01/22 | B+ | 3,290,940 | |||||||||||||||||||||||
Semiconductors & Semiconductor Equipment 2.7% | ||||||||||||||||||||||||||||
4,816 | Advanced Micro Devices Inc. |
7.500% | 8/15/22 | B+ | 5,418,193 | |||||||||||||||||||||||
2,000 | Amkor Technology Inc. |
6.375% | 10/01/22 | BB | 2,037,740 | |||||||||||||||||||||||
6,816 | Total Semiconductors & Semiconductor Equipment |
|
7,455,933 | |||||||||||||||||||||||||
Software 2.3% | ||||||||||||||||||||||||||||
2,000 | Blackboard Inc., 144A |
9.750% | 10/15/21 | CCC | 1,575,000 | |||||||||||||||||||||||
295 | BMC Software Finance Inc., 144A |
8.125% | 7/15/21 | CCC+ | 301,519 | |||||||||||||||||||||||
2,800 | Infor Software Parent LLC and Infor Software Parent Inc., 144A |
7.125% | 5/01/21 | CCC | 2,830,100 | |||||||||||||||||||||||
1,500 | TIBCO Software Inc., 144A |
11.375% | 12/01/21 | CCC+ | 1,601,250 | |||||||||||||||||||||||
6,595 | Total Software |
6,307,869 | ||||||||||||||||||||||||||
Specialty Retail 0.2% | ||||||||||||||||||||||||||||
1,000 | Neiman Marcus Group Ltd LLC, 144A |
8.000% | 10/15/21 | Caa3 | 656,875 |
3
JCO | Nuveen Credit Opportunities 2022 Target Term Fund (continued) | |
Portfolio of Investments September 30, 2018 | ||
(Unaudited) |
Principal Amount (000) |
Description (1) | Coupon | Maturity | Ratings (2) | Value | |||||||||||||||||||||||
Technology Hardware, Storage & Peripherals 2.6% | ||||||||||||||||||||||||||||
$ | 3,000 | Diamond 1 Finance Corporation / Diamond 2 Finance Corporation, 144A |
|
5.875% | 6/15/21 | BB+ | $ | 3,090,001 | ||||||||||||||||||||
4,000 | Seagate HDD Cayman |
4.250% | 3/01/22 | Baa3 | 3,974,354 | |||||||||||||||||||||||
7,000 | Total Technology Hardware, Storage & Peripherals |
|
7,064,355 | |||||||||||||||||||||||||
Wireless Telecommunication Services 4.8% | ||||||||||||||||||||||||||||
3,000 | Hughes Satellite Systems Corp |
7.625% | 6/15/21 | BB | 3,240,840 | |||||||||||||||||||||||
2,000 | Sprint Communications Inc. |
6.000% | 11/15/22 | B+ | 2,040,000 | |||||||||||||||||||||||
7,500 | Sprint Corp |
7.250% | 9/15/21 | B+ | 7,921,875 | |||||||||||||||||||||||
12,500 | Total Wireless Telecommunication Services |
|
13,202,715 | |||||||||||||||||||||||||
$ | 294,525 | Total Corporate Bonds (cost $296,787,718) |
|
294,673,467 | ||||||||||||||||||||||||
Principal Amount (000) |
Description (1) | Coupon (3) | Reference Rate (3) |
Spread (3) | Maturity (4) | Ratings (2) | Value | |||||||||||||||||||||
VARIABLE RATE SENIOR LOAN INTERESTS 30.9% (22.3% of Total Investments) (3) |
| |||||||||||||||||||||||||||
Aerospace & Defense 2.9% | ||||||||||||||||||||||||||||
$ | 6,015 | Sequa Corporation, Term Loan B |
7.186% | 2-Month LIBOR | 5.000% | 11/28/21 | B | $ | 5,927,028 | |||||||||||||||||||
1,918 | Sequa Corporation, Term Loan, Second Lien |
11.200% | 2-Month LIBOR | 9.000% | 4/28/22 | CCC | 1,891,292 | |||||||||||||||||||||
7,933 | Total Aerospace & Defense |
7,818,320 | ||||||||||||||||||||||||||
Auto Components 0.9% | ||||||||||||||||||||||||||||
2,362 | Federal-Mogul Corporation, Tranche C, Term Loan |
5.890% | 1-Month LIBOR | 3.750% | 4/15/21 | B1 | 2,367,831 | |||||||||||||||||||||
Commercial Services & Supplies 4.4% | ||||||||||||||||||||||||||||
3,446 | iQor US, Inc., Term Loan, First Lien |
7.337% | 3-Month LIBOR | 5.000% | 4/01/21 | CCC | 3,239,385 | |||||||||||||||||||||
4,241 | Monitronics International, Inc., Term Loan B2, First Lien |
7.886% | 3-Month LIBOR | 5.500% | 9/30/22 | Caa1 | 4,147,855 | |||||||||||||||||||||
4,955 | Skillsoft Corporation, Initial Term Loan, First Lien |
6.992% | 1-Month LIBOR | 4.750% | 4/28/21 | CCC+ | 4,725,822 | |||||||||||||||||||||
12,642 | Total Commercial Services & Supplies |
|
12,113,062 | |||||||||||||||||||||||||
Diversified Financial Services 0.9% | ||||||||||||||||||||||||||||
2,538 | Ocwen Financial Corporation, Term Loan B, First Lien |
7.165% | 1-Month LIBOR | 5.000% | 12/05/20 | B+ | 2,553,742 | |||||||||||||||||||||
Equity Real Estate Investment Trusts 1.0% | ||||||||||||||||||||||||||||
2,924 | Walter Investment Management Corporation, Tranche B, Term Loan, First Lien |
8.242% | 1-Month LIBOR | 6.000% | 6/30/22 | CCC+ | 2,769,771 | |||||||||||||||||||||
Food & Staples Retailing 2.1% | ||||||||||||||||||||||||||||
5,671 | Albertsons LLC, Term Loan B4 |
4.992% | 1-Month LIBOR | 2.750% | 8/25/21 | BB | 5,683,676 | |||||||||||||||||||||
Health Care Equipment & Supplies 0.7% | ||||||||||||||||||||||||||||
1,945 | Onex Carestream Finance LP, Term Loan, First Lien |
6.242% | 1-Month LIBOR | 4.000% | 6/07/19 | B | 1,946,215 | |||||||||||||||||||||
Health Care Providers & Services 0.7% | ||||||||||||||||||||||||||||
1,974 | Pharmaceutical Product Development, Inc., Term Loan B |
4.742% | 1-Month LIBOR | 2.500% | 8/18/22 | Ba3 | 1,978,419 | |||||||||||||||||||||
Hotels, Restaurants & Leisure 1.8% | ||||||||||||||||||||||||||||
4,938 | Seaworld Parks and Entertainment, Inc., Term Loan B2 |
4.492% | 1-Month LIBOR | 2.250% | 5/14/20 | B | 4,941,240 | |||||||||||||||||||||
Household Durables 2.2% | ||||||||||||||||||||||||||||
5,869 | Apex Tool Group LLC, Term Loan B |
5.992% | 1-Month LIBOR | 3.750% | 2/01/22 | B | 5,896,982 |
4
Principal Amount (000) |
Description (1) | Coupon (3) | Reference Rate (3) |
Spread (3) | Maturity (4) | Ratings (2) | Value | |||||||||||||||||||||
Machinery 1.8% | ||||||||||||||||||||||||||||
$ | 1,971 | NN, Inc., Term Loan |
5.992% | 1-Month LIBOR | 3.750% | 10/19/22 | B+ | $ | 1,980,802 | |||||||||||||||||||
2,992 | TNT Crane and Rigging Inc., Initial Term Loan, First Lien |
6.886% | 3-Month LIBOR | 4.500% | 11/27/20 | CCC+ | 2,921,092 | |||||||||||||||||||||
4,963 | Total Machinery |
4,901,894 | ||||||||||||||||||||||||||
Media 3.6% | ||||||||||||||||||||||||||||
1,274 | Affinion Group Holdings, Inc., Term Loan, First Lien |
9.908% | 1-Month LIBOR | 7.750% | 5/10/22 | B2 | 1,311,249 | |||||||||||||||||||||
1,969 | Getty Images, Inc., Term Loan B, First Lien |
5.742% | 1-Month LIBOR | 3.500% | 10/18/19 | B3 | 1,957,713 | |||||||||||||||||||||
4,439 | McGraw-Hill Education Holdings LLC, Term Loan B |
6.242% | 1-Month LIBOR | 4.000% | 5/02/22 | B+ | 4,321,650 | |||||||||||||||||||||
2,212 | Springer Science & Business Media, Inc., Term Loan B13, First Lien |
5.886% | 3-Month LIBOR | 3.500% | 8/15/22 | B | 2,224,709 | |||||||||||||||||||||
9,894 | Total Media |
9,815,321 | ||||||||||||||||||||||||||
Software 4.0% | ||||||||||||||||||||||||||||
2,520 | Blackboard, Inc., Term Loan B4 |
7.333% | 3-Month LIBOR | 5.000% | 6/30/21 | B | 2,435,197 | |||||||||||||||||||||
1,868 | Ellucian, Term Loan B, First Lien |
5.636% | 3-Month LIBOR | 3.250% | 9/30/22 | B | 1,878,372 | |||||||||||||||||||||
3,371 | Informatica, Term Loan B |
5.492% | 1-Month LIBOR | 3.250% | 8/05/22 | B | 3,401,617 | |||||||||||||||||||||
3,067 | Tibco Software, Inc., Term Loan, First Lien |
5.750% | 1-Month LIBOR | 3.500% | 12/04/20 | B | 3,085,143 | |||||||||||||||||||||
10,826 | Total Software |
10,800,329 | ||||||||||||||||||||||||||
Specialty Retail 2.9% | ||||||||||||||||||||||||||||
1,806 | 99 Cents Only Stores, Tranche B2, Term Loan, Second Lien (cash 8.852%, PIK 1.500%) |
8.852% | 3-Month LIBOR | 6.500% | 1/13/22 | CCC+ | 1,747,180 | |||||||||||||||||||||
2,997 | Neiman Marcus Group, Inc., Term Loan |
5.370% | 1-Month LIBOR | 3.250% | 10/25/20 | CCC | 2,790,989 | |||||||||||||||||||||
3,995 | Petsmart Inc., Term Loan B, First Lien, (DD1) |
5.120% | 1-Month LIBOR | 3.000% | 3/11/22 | B3 | 3,496,848 | |||||||||||||||||||||
8,798 | Total Specialty Retail |
8,035,017 | ||||||||||||||||||||||||||
Textiles, Apparel & Luxury Goods 1.0% | ||||||||||||||||||||||||||||
3,000 | J. Crew Group, Inc., Term Loan |
5.515% | 1-Month LIBOR | 3.220% | 3/05/21 | CCC | 2,738,865 | |||||||||||||||||||||
$ | 86,277 | Total Variable Rate Senior Loan Interests (cost $84,203,349) |
|
84,360,684 | ||||||||||||||||||||||||
Total Long-Term Investments (cost $380,991,067) |
|
379,034,151 | ||||||||||||||||||||||||||
Borrowings (40.2)% (5), (6) |
(110,000,000 | ) | ||||||||||||||||||||||||||
Other Assets Less Liabilities 1.5% |
|
4,202,449 | ||||||||||||||||||||||||||
Net Assets 100% |
$ | 273,236,600 |
Fair Value Measurements
Fair value is defined as the price that would be received upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entitys own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The following is a summary of the three-tiered hierarchy of valuation input levels.
Level 1 | Inputs are unadjusted and prices are determined using quoted prices in active markets for identical securities. | |
Level 2 | Prices are determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
Level 3 | Prices are determined using significant unobservable inputs (including managements assumptions in determining the fair value of investments). |
5
JCO | Nuveen Credit Opportunities 2022 Target Term Fund (continued) | |
Portfolio of Investments September 30, 2018 | ||
(Unaudited) |
The inputs or methodologies used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of the Funds fair value measurements as of the end the reporting period:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Long-Term Investments: |
||||||||||||||||
Corporate Bonds |
$ | | $ | 294,673,467 | $ | | $ | 294,673,467 | ||||||||
Variable Rate Senior Loan Interests |
| 84,360,684 | | 84,360,684 | ||||||||||||
Total |
$ | | $ | 379,034,151 | $ | | $ | 379,034,151 |
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
The table below presents the cost and unrealized appreciation (depreciation) of the Funds investment portfolio, as determined on a federal income tax basis, as of September 30, 2018.
Tax cost of investments |
$ | 380,991,067 | ||
Gross unrealized: |
||||
Appreciation |
$ | 2,662,963 | ||
Depreciation |
(4,619,879 | ) | ||
Net unrealized appreciation (depreciation) of investments |
$ | (1,956,916 | ) |
For Fund portfolio compliance purposes, the Funds industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.
(1) | All percentages shown in the Portfolio of Investments are based on net assets unless otherwise noted. |
(2) | For financial reporting purposes, the ratings disclosed are the highest of Standard & Poors Group (Standard & Poors), Moodys Investors Service, Inc. (Moodys) or Fitch, Inc. (Fitch) rating. This treatment of split-rated securities may differ from that used for other purposes, such as for Fund investment policies. Ratings below BBB by Standard & Poors, Baa by Moodys or BBB by Fitch are considered to be below investment grade. Holdings designated N/R are not rated by any of these national rating agencies. |
(3) | Senior loans generally pay interest at rates which are periodically adjusted by reference to a base short-term, floating lending rate (Reference Rate) plus an assigned fixed rate (Spread). These floating lending rates are generally (i) the lending rate referenced by the London Inter-Bank Offered Rate (LIBOR), or (ii) the prime rate offered by one or more major United States banks. Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. The rate shown is the coupon as of the end of the reporting period. |
(4) | Senior loans generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for a borrower to prepay, prepayments of senior loans may occur. As a result, the actual remaining maturity of senior loans held may be substantially less than the stated maturities shown. |
(5) | Borrowings as a percentage of Total Investments is 29.0%. |
(6) | The Fund segregates 100% of its eligible investments (excluding any investments separately pledged as collateral for specific investments in derivatives, when applicable) in the Portfolio of Investments as collateral for Borrowings. |
144A | Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration, which are normally those transactions with qualified institutional buyers. |
DD1 | Portion of investment purchased on a delayed delivery basis. |
LIBOR | London Inter-Bank Offered Rate. |
PIK | Payment-in-kind (PIK) security. Depending on the terms of the security, income may be received in the form of cash, securities, or a combination of both. The PIK rate shown, where applicable, represents the annualized rate of the last PIK payment made by the issuer as of the end of the reporting period. |
6
Item 2. Controls and Procedures.
a. | The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
b. | There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. |
Item 3. Exhibits.
File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Nuveen Credit Opportunities 2022 Target Term Fund | |||
By (Signature and Title) | /s/ Gifford R. Zimmerman | |||
Gifford R. Zimmerman | ||||
Vice President and Secretary |
Date: November 29, 2018
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Cedric H. Antosiewicz | |||
Cedric H. Antosiewicz | ||||
Chief Administrative Officer (principal executive officer) | ||||
Date: November 29, 2018 | ||||
By (Signature and Title) | /s/ Stephen D. Foy | |||
Stephen D. Foy | ||||
Vice President and Controller (principal financial officer) | ||||
Date: November 29, 2018 |
Exhibit 99.CERT
CERTIFICATIONS
I, Cedric H. Antosiewicz, certify that:
1. | I have reviewed this report on Form N-Q of Nuveen Credit Opportunities 2022 Target Term Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 29, 2018
/s/ Cedric H. Antosiewicz | ||||
Cedric H. Antosiewicz | ||||
Chief Administrative Officer | ||||
(principal executive officer) |
CERTIFICATIONS
I, Stephen D. Foy, certify that:
1. | I have reviewed this report on Form N-Q of Nuveen Credit Opportunities 2022 Target Term Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
d. | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: November 29, 2018
/s/ Stephen D. Foy | ||||
Stephen D. Foy | ||||
Vice President and Controller | ||||
(principal financial officer) |