Nuveen Ohio muni fund to sell $25.58 million MuniFund preferreds

By Stephanie N. Rotondo

Portland, Ore., March 30 - Nuveen Ohio Dividend Advantage Municipal Fund 2 intends to sell about 2.56 million of series 2014 MuniFund term preferreds shares, according to an N-2 filed with the Securities and Exchange Commission on Wednesday.

The preferreds will be sold at $10 each, generating about $25.58 million of proceeds.

The liquidation preference is $10 per share.

Dividends are payable monthly, and redemption is required on May 1, 2014. The fund can opt to redeem the preferreds early after May 1, 2012 at a premium through April 30, 2013 and at the liquidation preference thereafter.

Morgan Stanley & Co. Inc. is the lead bookrunner. Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Nuveen Investments LLC is the co-manager.

Proceeds from the sale will be used to refinance and redeem all of the fund's outstanding municipal auction-rate cumulative preferreds and to maintain the fund's leveraged capital structure.

The new preferreds will be listed on the New York Stock Exchange under the ticker symbol "NBJ PRA."

The fund is managed by Chicago-based Nuveen Investments.

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