Four Nuveen closed-end funds to issue MuniFund term preferred shares

By Marisa Wong

Milwaukee, Jan. 22 - Nuveen Investments announced that four of its closed-end funds have filed registration statements with the Securities and Exchange Commission to issue MuniFund term preferred shares.

The new preferreds are expected to be listed on the New York Stock Exchange. The funds that have filed registration statements are:

• Nuveen Dividend Advantage Municipal Fund (NYSE: NAD);

• Nuveen Dividend Advantage Municipal Fund 3 (AMEX: NZF);

• Nuveen Pennsylvania Dividend Advantage Municipal Fund (AMEX: NXM); and

• Nuveen New Jersey Dividend Advantage Municipal Fund 2 (AMEX: NUJ).

The MuniFund term preferred share is a fixed-rate form of preferred stock with a mandatory redemption period. By issuing MuniFund preferreds, the funds seek to take advantage of the current historically low interest rate environment to lock in an attractive tax-exempt cost of leverage for a period as long as the term of the preferred.

Nuveen is an investment management firm based in Chicago.

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