Nuveen Investments, a leading global provider of investment services to institutions as well as high-net-worth and affluent investors, today announced that Nuveen New Jersey Dividend Advantage Municipal Fund (AMEX: NXJ) 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 $43.925 million and will be funded by proceeds received from the issuance of MuniFund Term Preferred Shares (MTP).

NXJ is redeeming all of its $43.925 million of currently outstanding ARPS.
    Total Shares   Total Amount   Redemption
Series   Cusip #   Redeemed   Redeemed   Date
T   67069Y201   1,757   $43,925,000   April 18, 2011

Additionally, the Nuveen California Dividend Advantage Municipal Fund 2 (AMEX: NVX) has successfully completed the public offering of $40.806 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 NVX PrA.

MTP is a fixed rate form of preferred stock with a mandatory redemption period, in the case of the NVX offering, of three 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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