Five Nuveen municipal funds to refinance MuniFund term preferreds

By Angela McDaniels

Tacoma, Wash., Nov. 20 - Five Nuveen Investments municipal bond closed-end funds plan to refinance all of their respective MuniFund term preferred shares and variable-rate MuniFund term preferred shares, according to a company news release.

The Nuveen AMT-Free Municipal Income Fund, the Nuveen Dividend Advantage Municipal Fund, the Nuveen Arizona Premium Income Municipal Fund and the Nuveen Dividend Advantage Municipal Income Fund plan to redeem their preferreds at par plus accrued dividends.

They will finance the redemptions with the proceeds of new preferreds issued to qualified institutional buyers in private offerings.

Nuveen Dividend Advantage Municipal Income Fund plans to offer variable-rate demand preferreds to one buyer and make its redemptions on Dec. 23.

The remaining funds plan to offer variable-rate MuniFund term preferreds. The anticipated redemption date is Dec. 20 for their preferreds and Jan. 6 for their variable-rate preferreds.

The Nuveen Michigan Quality Income Municipal Fund plans to issue new variable-rate MuniFund term preferreds in exchange for its securities. The exchange is expected to settle on Dec. 20 for its preferreds and Jan. 6 for its variable-rate preferreds.

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