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 California Quality Income Municipal Fund, Inc. (NYSE: NUC): $158.1 million
  • Nuveen California Select Quality Municipal Fund, Inc. (NYSE: NVC): $158.9 million
  • Nuveen New York Investment Quality Municipal Fund, Inc. (NYSE: NQN): $112.3 million
  • Nuveen New York Select Quality Municipal Fund, Inc. (NYSE: NVN): $164.8 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 $594 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.

NUC is redeeming all of its $157.225 million of currently outstanding ARPS.
    Total Shares   Total Amount  
Series   Cusip #   Redeemed   Redeemed   Redemption Date
M   670985407   1,189   $29,725,000   September 10, 2010
W   670985209   2,550   $63,750,000   September 14, 2010
F   670985308   2,550   $63,750,000   September 9, 2010

NVC is redeeming all of its $158.025 million of currently outstanding ARPS.
    Total Shares   Total Amount  
Series   Cusip #   Redeemed   Redeemed   Redemption Date
T   670975200   1,975   $49,375,000   September 13, 2010
W   670975408   1,383   $34,575,000   September 14, 2010
TH   670975309   2,963   $74,075,000   September 8, 2010

NQN is redeeming all of its $111.5 million of currently outstanding ARPS.
    Total Shares   Total Amount  
Series   Cusip #   Redeemed   Redeemed   Redemption Date
M   67062X408   744   $18,600,000   September 10, 2010
T   67062X200   1,858   $46,450,000   September 13, 2010
F   67062X309   1,858   $46,450,000   September 9, 2010

NVN is redeeming all of its $163.9 million of currently outstanding ARPS.
    Total Shares   Total Amount  
Series   Cusip #   Redeemed   Redeemed   Redemption Date
T   670976406   1,461   $36,525,000   September 13, 2010
W   670976208   2,038   $50,950,000   September 14, 2010
TH   670976307   3,057   $76,425,000   September 8, 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.