Nuveen municipal funds to redeem $596.9 million auction-rate preferreds

By Cristal Cody

Springdale, Ark., Aug. 8 - Four Nuveen Investments municipal closed-end funds plan to redeem at par the remaining $596.9 million in auction-rate preferred securities in September, according to a notice released Friday.

The funds have sold variable-rate demand preferred shares and created tender option bond trusts to complete the redemptions.

The Nuveen Dividend Advantage Municipal Fund 2 will redeem $222 million outstanding preferreds, including $72 million from series F and $75 million from series M on Sept. 2 and $75 million from series T on Sept. 3.

The Nuveen Insured Premium Income Municipal Fund 2 will take out $268.9 million preferreds.

The redemption includes $52 million series M preferrreds and $54.9 million series F preferreds on Sept. 2; $55 million from series T on Sept. 3; $52 million from series W on Sept. 4 and $55 million from series TH on Sept. 5.

The Nuveen Insured California Tax Free Advantage Municipal Fund plans to redeem $45 million series TH preferreds, and the Nuveen Insured New York Dividend Advantage Municipal Fund expects to redeem $61 million series TH preferreds on Sept. 5.

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