Four Nuveen closed-end funds today announced that each has priced a private offering of Variable Rate Demand Preferred (VRDP) shares placed with qualified institutional buyers, as defined pursuant to Rule 144A under the Securities Act of 1933. The following amounts of VRDP shares have been issued by each fund:
     

Nuveen Pennsylvania Investment Quality Municipal Fund (NQP):

$112.5 million

Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY):

$100.0 million

Nuveen New Jersey Investment Quality Municipal Fund (NQJ):

$144.3 million

Nuveen New Jersey Premium Income Municipal Fund (NNJ):

$88.6 million
 

The proceeds from each offering will be used to redeem at par all of the fund’s outstanding auction-rate preferred shares (ARPS). The funds’ Board of Trustees had previously approved each redemption, which total more than $440 million. Each refinancing is expected to lower the relative costs of leverage for the funds over time while also providing liquidity at par for the holders the funds’ ARPS.
   

NQJ is redeeming all of its $143.45 million of currently outstanding ARPS.
                 
    Total Shares   Total Amount   Redemption
Series   Cusip #   Redeemed   Redeemed   Date
M   670971209   2,834   $70,850,000   September 2, 2010
TH   670971308   1,772   $44,300,000   September 8, 2010
F   670971407   1,132   $28,300,000   September 2, 2010
 

NNJ is redeeming all of its $87.875 million of currently outstanding ARPS.
                 
Total Shares Total Amount Redemption
Series   Cusip #   Redeemed   Redeemed   Date
T   67101N403   599   $14,975,000   September 3, 2010
W   67101N304   1,381   $34,525,000   September 7, 2010
TH   67101N205   1,535   $38,375,000   September 8, 2010
 

NQP is redeeming all of its $111.75 million of currently outstanding ARPS.
                 
Total Shares Total Amount Redemption
Series   Cusip #   Redeemed   Redeemed   Date
T   670972405   744   $18,600,000   September 3, 2010
W   670972207   2,033   $50,825,000   September 7, 2010
TH   670972306   1,693   $42,325,000   September 8, 2010
 

NPY is redeeming all of its $99.275 million of currently outstanding ARPS.
                 
Total Shares Total Amount Redemption
Series   Cusip #   Redeemed   Redeemed   Date
M   67101W502   710   $17,750,000   September 2, 2010
TH   67101W304   1,748   $43,700,000   September 8, 2010
F   67101W403   1,513   $37,825,000   September 2, 2010
 

VRDP shares include a liquidity feature that allows holders of VRDP to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. The liquidity feature for this fund’s VRDP is being provided by Citibank, N.A. The VRDP shares comply with the requirements of IRS Notice 2008-55, as extended by IRS Notice 2010-03, and qualify as equity for income tax purposes. This affords VRDP share dividends the same tax treatment as the income on the fund’s underlying investments, notwithstanding VRDP terms that require the fund to redeem VRDP shares still owned by the liquidity provider if there are six months of continuous, unsuccessful remarketing.