23 Nuveen Municipal Closed-End Funds Issue At-Par Redemption Notices for Auction-Rate Securities
Funds Employing Tender Option Bonds to Refinance More Than $350 Million in Auction-Rate Preferred Shares
CHICAGO--(BUSINESS WIRE)--Twenty-three Nuveen municipal closed-end funds today called for redemption at par a portion of their outstanding auction-rate preferred shares (ARPS). The funds’ Board of Trustees has approved the redemptions, using tender option bonds (TOBs) to refinance more than $350 million of the funds’ ARPS. This refinancing is expected to lower the relative costs of leverage for the funds over time while also providing liquidity at par for the holders of at least some of the funds’ ARPS.
“We are pleased to announce this new round of redemptions of our municipal closed-end fund ARPs”
TOBs are floating rate securities issued by trusts into which a fund has deposited municipal securities. Many Nuveen CEFs already use TOBs as a portfolio structuring and duration management tool. Nuveen has created a team of experts focused on evaluating Nuveen CEFs for expanded implementation of TOBs as an alternative form of leverage replacing ARPS.
“We are pleased to announce this new round of redemptions of our municipal closed-end fund ARPs,” said Bill Adams, Executive Vice President, Nuveen Investments. “While current market uncertainties add to the challenge of ARPS refinancing, it remains a top priority and we appreciate the patience shown by many investors.”
The funds issuing at-par redemption notices are:
| Municipal Advantage Fund (NMA) |
| Select Quality Municipal Fund (NQS) |
| Dividend Advantage Municipal Fund (NAD) |
| Nuveen Municipal Market Opportunity Fund (NMO) |
| Insured Quality Municipal Fund (NQI) |
| Premier Insured Municipal Income Fund (NIF) |
| Insured Dividend Advantage Municipal Fund (NVG) |
| Insured Tax-Free Advantage Municipal Fund (NEA) |
| Insured Municipal Opportunity Fund (NIO) |
| Investment Quality Municipal Fund (NQM) |
| California Performance Plus Municipal Fund (NCP) |
|
California Investment Quality Municipal Fund (NQC) |
| California Select Quality Municipal Fund (NVC) |
| California Quality Income Municipal Fund (NUC) |
| Insured California Premium Income Municipal Fund 2 (NCL) |
| Insured California Dividend Advantage Municipal Fund (NKL) |
| New York Performance Plus Municipal Fund (NNP) |
| New York Dividend Advantage Municipal Fund (NAN) |
| New York Dividend Advantage Municipal Fund 2 (NXK) |
| New York Investment Quality Municipal Fund (NQN) |
| New York Select Quality Municipal Fund (NVN) |
| New York Quality Income Municipal Fund (NUN) |
| Insured New York Premium Income Municipal Fund (NNF) |
These redemptions will be allocated on a pro rata basis among each fund’s auction-rate preferred shares series. The Depository Trust Company (DTC), the securities’ holder of record, determines how each partial series redemption will be allocated among each participant broker-dealer account. Each participant broker-dealer, as nominee for underlying beneficial owners (street name shareholders), in turn determines how redeemed shares are allocated among its underlying beneficial owners. The procedures used by different broker-dealers to allocate redeemed shares among beneficial owners may differ from each other as well as from the procedures used by DTC.
The tables below list the total number of shares, par amounts and scheduled redemption dates for this stage of redemptions, which collectively total $353.3 million:
NMA is redeeming $16.35 million of its $358 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption |
||||
| M | 67062H205 | 137 | $3,425,000 | September 2, 2008 | ||||
| T | 67062H304 | 137 | $3,425,000 | September 3, 2008 | ||||
| W | 67062H403 | 137 | $3,425,000 | August 28, 2008 | ||||
| TH | 67062H601 | 106 | $2,650,000 | August 29, 2008 | ||||
| F | 67062H502 | 137 | $3,425,000 | September 2, 2008 |
NQS is redeeming $11.425 million of its $279 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 670973304 | 82 | $2,050,000 | September 2, 2008 | ||||
| T | 670973502 | 82 | $2,050,000 | September 3, 2008 | ||||
| W | 670973403 | 114 | $2,850,000 | August 28, 2008 | ||||
| TH | 670973601 | 64 | $1,600,000 | August 29, 2008 | ||||
| F | 670973205 | 115 | $2,875,000 | September 2, 2008 |
NAD is redeeming $5.2 million of its $272 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67066V200 | 71 | $1,775,000 | September 2, 2008 | ||||
| T | 67066V309 | 71 | $1,775,000 | September 3, 2008 | ||||
| TH | 67066V408 | 66 | $1,650,000 | August 29, 2008 |
NMO is redeeming $18.325 million of its $380 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062W301 | 193 | $4,825,000 | September 2, 2008 | ||||
| T | 67062W400 | 193 | $4,825,000 | September 3, 2008 | ||||
| W | 67062W509 | 154 | $3,850,000 | August 28, 2008 | ||||
| F | 67062W202 | 193 | $4,825,000 | September 2, 2008 |
NQI is redeeming $19.575 million of its $318 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062N202 | 160 | $4,000,000 | September 2, 2008 | ||||
| T | 67062N400 | 160 | $4,000,000 | September 3, 2008 | ||||
| W | 67062N301 | 160 | $4,000,000 | August 28, 2008 | ||||
| TH | 67062N608 | 143 | $3,575,000 | August 29, 2008 | ||||
| F | 67062N509 | 160 | $4,000,000 | September 2, 2008 |
NIF is redeeming $6.05 million of its $161 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| W | 670987403 | 32 | $800,000 | August 28, 2008 | ||||
| TH | 670987205 | 105 | $2,625,000 | August 29, 2008 | ||||
| F | 670987304 | 105 | $2,625,000 | September 2, 2008 |
NVG is redeeming $6.025 million of its $233 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67071L205 | 81 | $2,025,000 | September 2, 2008 | ||||
| T | 67071L304 | 80 | $2,000,000 | September 3, 2008 | ||||
| TH | 67071L403 | 80 | $2,000,000 | August 29, 2008 |
NEA is redeeming $11.2 million of its $144 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 670657204 | 224 | $5,600,000 | September 3, 2008 | ||||
| W | 670657303 | 224 | $5,600,000 | August 28, 2008 |
NIO is redeeming $11.2 million of its $638.45 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 670984202 | 89 | $2,225,000 | September 2, 2008 | ||||
| T | 670984301 | 89 | $2,225,000 | September 3, 2008 | ||||
| W | 670984608 | 89 | $2,225,000 | August 28, 2008 | ||||
| W2 | 670984806 | 71 | $1,775,000 | August 28, 2008 | ||||
| TH | 670984400 | 89 | $2,225,000 | August 29, 2008 | ||||
| TH2 | 670984707 | 88 | $2,200,000 | August 29, 2008 | ||||
| F | 670984509 | 89 | $2,225,000 | September 2, 2008 |
NQM is redeeming $8.425 million of its $237.875 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062E400 | 70 | $1,750,000 | September 2, 2008 | ||||
| T | 67062E301 | 70 | $1,750,000 | September 3, 2008 | ||||
| W | 67062E509 | 70 | $1,750,000 | August 28, 2008 | ||||
| TH | 67062E608 | 57 | $1,425,000 | August 29, 2008 | ||||
| F | 67062E202 | 70 | $1,750,000 | September 2, 2008 |
NCP is redeeming $6.075 million of its $106 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 67062Q205 | 103 | $2,575,000 | September 3, 2008 | ||||
| W | 67062Q403 | 37 | $925,000 | August 28, 2008 | ||||
| F | 67062Q304 | 103 | $2,575,000 | September 2, 2008 |
NQC is redeeming $17.075 million of its $112 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062A200 | 549 | $13,725,000 | September 2, 2008 | ||||
| W | 67062A309 | 134 | $3,350,000 | August 28, 2008 |
NVC is redeeming $22.725 million of its $192 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 670975200 | 284 | $7,100,000 | September 3, 2008 | ||||
| W | 670975408 | 199 | $4,975,000 | August 28, 2008 | ||||
| TH | 670975309 | 426 | $10,650,000 | August 29, 2008 |
NUC is redeeming $19.975 million of its $185 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 670985407 | 151 | $3,775,000 | September 2, 2008 | ||||
| W | 670985209 | 324 | $8,100,000 | August 28, 2008 | ||||
| F | 670985308 | 324 | $8,100,000 | September 2, 2008 |
NCL is redeeming $15.175 million of its $95 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 67061U306 | 303 | $7,575,000 | September 3, 2008 | ||||
| TH | 67061U207 | 304 | $7,600,000 | August 29, 2008 |
NKL is redeeming $9.75 million of its $118 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 67071M203 | 195 | $4,875,000 | September 3, 2008 | ||||
| F | 67071M302 | 195 | $4,875,000 | September 2, 2008 |
NNP is redeeming $36.65 million of its $124.3 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062R302 | 471 | $11,775,000 | September 2, 2008 | ||||
| T | 67062R500 | 236 | $5,900,000 | September 3, 2008 | ||||
| W | 67062R203 | 590 | $14,750,000 | August 28, 2008 | ||||
| F | 67062R401 | 169 | $4,225,000 | September 2, 2008 |
NAN is redeeming $17.6 million of its $69 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| F | 67066X206 | 704 | $17,600,000 | September 2, 2008 |
NXK is redeeming $12.9 million of its $47 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| W | 67070A200 | 516 | $12,900,000 | August 28, 2008 |
NQN is redeeming $29.075 million of its $144 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67062X408 | 193 | $4,825,000 | September 2, 2008 | ||||
| T | 67062X200 | 485 | $12,125,000 | September 3, 2008 | ||||
| F | 67062X309 | 485 | $12,125,000 | September 2, 2008 |
NVN is redeeming $29.1 million of its $193 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| T | 670976406 | 259 | $6,475,000 | September 3, 2008 | ||||
| W | 670976208 | 362 | $9,050,000 | August 28, 2008 | ||||
| TH | 670976307 | 543 | $13,575,000 | August 29, 2008 |
NUN is redeeming $6.5 million of its $171.875 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 670986306 | 73 | $1,825,000 | September 2, 2008 | ||||
| W | 670986405 | 73 | $1,825,000 | August 28, 2008 | ||||
| TH | 670986207 | 79 | $1,975,000 | August 29, 2008 | ||||
| F | 670986504 | 35 | $875,000 | September 2, 2008 |
NNF is redeeming $13 million of its $65 million of currently outstanding ARPS.
| Series | Cusip # |
Total Shares |
Total Amount |
Redemption Date |
||||
| M | 67101R206 | 264 | $6,600,000 | September 2, 2008 | ||||
| T | 67101R305 | 256 | $6,400,000 | September 3, 2008 |
Nuveen plans to provide information on additional TOB refinancing for its municipal funds on an ongoing basis as TOBs are created and the funds are in a position to issue redemption notices. Information and updates on Nuveen CEFs and ARPS refinancing are posted regularly at www.nuveen.com/cef and www.nuveen.com/arps.
Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara, Symphony and Tradewinds. In total, the Company managed $153 billion of assets on March 31, 2008.
No TOBs have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, no TOBs 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.
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