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