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Two Nuveen Closed-End Funds Announce Actions Regarding MuniFund Term Preferred Shares

Nuveen Investments, a leading global provider of investment services to institutions and high-net-worth investors, today announced that the Nuveen Maryland Dividend Advantage Municipal Fund 3 (AMEX: NWI) has successfully completed the public offering of $15.366 million of MuniFund Term Preferred Shares (MTP). The net proceeds from this offering of MTP shares will be used to refinance all of the fund’s outstanding auction-rate preferred securities (ARPS). MTP shares are expected to trade on the New York Stock Exchange (NYSE) within 30 days of original issuance under the symbol NWI PrD.

Additionally, the Nuveen Massachusetts Premium Income Municipal Fund (NYSE: NMT) called for redemption at par all of its outstanding auction-rate preferred securities (ARPS). The fund’s Board of Trustees has approved this redemption, which totals $14.4 million and will be funded by proceeds received from the issuance of MuniFund Term Preferred Shares (MTP).

NMT is redeeming all of its $14.4 million of currently outstanding ARPS.

Series   Cusip #  

Total Shares Redeemed

 

Total Amount Redeemed

  Redemption Date
TH 67061E203 576 $14,400,000 February 16, 2011

MTP is a fixed rate form of preferred stock with a mandatory redemption period, in the case of this offering, of five years. By issuing MTP, the fund seeks 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 MTP. Issuing MTP helps the fund mitigate the risk of a significant increase in the cost of leverage should short-term interest rates rise.

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