Four Nuveen funds to redeem $697 million in auction-rate preferreds

By Devika Patel

Knoxville, Tenn., March 19 - Nuveen Investments Inc. announced that four of its closed-end funds will redeem in full or in part all of their outstanding auction-rate preferred securities at par. The total amount being redeemed is $697 million.

The funds that are calling for redemption are:

• The Nuveen Dividend Advantage Municipal Fund (NYSE: NAD), which will redeem $141.725 million of its $261.8 million in preferreds;

• Nuveen California Performance Plus Municipal Fund (NYSE: NCP), which will redeem $3.03 million of its $83.375 million in preferreds;

• Nuveen Municipal Advantage Fund (NYSE: NMA), which will redeem all of its $293.2 million preferreds; and

• Nuveen Premium Income Municipal Fund 4 (NYSE: NPT), which will redeem all $259.05 million of its preferreds.

These redemptions will be funded by proceeds received from the recent issue of MuniFund term preferred shares or variable rate demand preferred shares and through tender option bonds.

Nuveen is an investment management firm based in Chicago.

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