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.

VRDP dividends will be set weekly at a rate established by Citigroup Global Markets Inc. as remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.

This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the fund’s common and preferred shareholders have been informed of the fund’s issuance of VRDP and its intention to redeem its outstanding ARPS, which may not occur as scheduled.

No VRDP shares have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws. Unless so registered, no VRDP shares may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds, Winslow Capital and Nuveen HydePark. In total, the Company managed $150 billion as of June 30, 2010. For more information, please visit the Nuveen Investments website at www.nuveen.com.

FORWARD LOOKING STATEMENTS

Certain statements made in this release are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to:
  • market developments;
  • legal and regulatory developments; and
  • other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.

Copyright Business Wire 2010

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