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NUVEEN CALIF DIV ADV MUNI 3
Symbol U : NZH
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Nuveen California Dividend Advantage Municipal Fund 3 Completes Offering of MuniFund Term Preferred Shares

2011-06-06 16:13 ET - News Release

Fund to Issue At-Par Redemption Notice for Auction-Rate Preferred Securities


Company Website: http://www.nuveen.com
CHICAGO -- (Business Wire)

Nuveen Investments, a leading global provider of investment services to institutions as well as high-net-worth and affluent investors, today announced that the Nuveen California Dividend Advantage Municipal Fund 3 (AMEX: NZH) has successfully completed the public offering of $44 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 NZH PrB.

Additionally, the fund has called for redemption at par all of its outstanding auction-rate preferred securities. This redemption will be funded by the above-mentioned proceeds received from the issuance of MuniFund Term Preferred Shares (MTP).

NZH is redeeming all of its $43.175 million of currently outstanding ARPS.

Series   Cusip #  

Total Shares
Redeemed

 

Total Amount
Redeemed

  Redemption
Date
M   67070Y307   863   $21,575,000   June 30, 2011
TH   67070Y208   864   $21,600,000   June 29, 2011

MTP is a fixed rate form of preferred stock with a mandatory redemption period, in the case of this 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 its cost of leverage should short-term interest rates rise.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the fund carefully before investing. For a prospectus which contains this and other information relevant to an investment in MTP shares of the fund, please contact your securities representative or Nuveen Securities, LLC, 333 W. Wacker Drive, Chicago, IL 60606 or www.nuveen.com/cef. Investors should read the prospectus carefully before they invest or send money.

This document is not an offer to sell this security and is not soliciting an offer to buy this security in any state where the offer or sale is not permitted.

For more information about Nuveen closed-end funds, visit www.nuveen.com/cef. ARPS information and updates are posted on Nuveen’s auction-rate preferred resource center at www.nuveen.com/arps.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions, high net worth and affluent investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates - NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments had $212 billion of assets under management as of April 30, 2011. For more information, please visit the Nuveen Investments website at www.nuveen.com.

Contacts:

Nuveen Investments
Media Contact:
Kristyna Sujata, (312) 917-8343
kristyna.sujata@nuveen.com

Source: Nuveen Investments

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