Nuveen raises up to $135 million for four closed-end state muni funds

By Susanna Moon

Chicago, April 28 - Nuveen Investments, LLC said it completed the initial public offering of four state-specific closed-end funds.

The funds are the Nuveen California Municipal Value Fund 2, Nuveen New Jersey Municipal Value Fund, Nuveen New York Municipal Value Fund 2 and Nuveen Pennsylvania Municipal Value Fund.

They will consist primarily of investment-grade municipal bonds and seek to provide monthly income exempt from federal income taxes with no leverage from preferred shares, according to a press release.

The funds were slated to begin trading Tuesday on the NYSE Amex under the symbols "NCB," "NJV," "NYV" and "NPN," respectively.

Nuveen said the funds raised approximately $135 million in their common share offerings assuming underwriters fully exercise their overallotments.

Specifically, the California fund raised $50 million, the New Jersey fund raised $25.1 million, the New York fund raised $40.4 million, and the Pennsylvania fund raised $19 million.

The funds are sponsored by Nuveen Investments. Nuveen Asset Management is the funds' adviser and is responsible for determining the funds' overall investment strategies.

The lead manager of the common share underwriting syndicate was Merrill Lynch, Pierce, Fenner & Smith Inc.

"A desire for more dependable income and the possibility of higher federal as well as state income taxes has brought increased investor interest in municipal bonds," Bill Adams, executive vice president, Nuveen Investments, said in the release.

Shares of closed-end investment companies, like these funds, usually trade on a national stock exchange, Nuveen noted. Similar to stocks, the funds' share prices will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Some income may be subject to state and local taxes and to the federal alternative minimum tax. Capital gains, if any, are subject to tax, the release continued.

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