Nuveen gives update on offers to buy 10% of shares of four muni funds

By Susanna Moon

Chicago, Sept. 22 – Nuveen Investments announced the preliminary results of the oversubscribed cash tender offers for up to 10% of the outstanding common shares of four closed-end funds.

Investors had tendered the following number of shares of each fund, based on preliminary information:

• 18,623,127 shares, or about 46.1%, of Nuveen Dividend Advantage Municipal Fund 3;

• 13,045,950 shares, or about 44%, of Nuveen Dividend Advantage Municipal Income Fund;

• 14,669,190 shares, or about 33.6% of Nuveen Municipal Advantage Fund, Inc.; and

• 15,762,460 shares, or about 29%, of Nuveen Quality Income Municipal Fund, Inc.

The figures do not include shares tendered through notice of guaranteed delivery, according to a company press release. The funds expect to announce the final results of the tender offers on Sept. 26.

As previously announced, the price per share will be 98% of the net asset value per share on the purchase date.

Payment will be made within 75 days after the completion of the funds’ annual shareholder meeting.

If the amount tendered exceeds the 10% cap per fund, the shares will be purchased on a pro rata basis.

The tender offer ended at 5 p.m. ET on Sept. 19.

Nuveen said on Aug. 18 that the board of trustees of four of its closed-end funds approved a cash tender offer to purchase up to 10% of the outstanding common shares of each fund.

In connection with the offering, Karpus Management Inc. agreed to vote the shares of each fund for which it has the power to vote in accordance with the recommendation of the board. Karpus also agreed to be bound by some standstill covenants with respect to the funds until Sept. 30, 2017.

Nuveen is a Chicago-based investment services company.

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