By Cristal Cody
Tupelo, Miss., Oct. 22 - Nuveen Investments, Inc. announced that the Nuveen California Dividend Advantage Municipal Fund 2 sold $50 million of MuniFund term preferred shares.
MuniFund term preferreds are a fixed-rate form of preferred stock with a mandatory redemption period. In this offering, the mandatory redemption period is five years.
The shares are expected to trade on the New York Stock Exchange within 30 days under the symbol "NVX PrC."
Proceeds will be used to refinance and redeem $48.9 million of the fund's $93.775 million outstanding auction-rate preferred securities.
Nuveen California Dividend Advantage Municipal Fund 2 shares closed up on Friday by 3 cents, or 0.21%, at $14.30 (NYSE Amex: NVX).
The issuer is a closed-ended fixed-income mutual fund launched by Chicago investment management firm Nuveen Investments to invest in the fixed-income markets of California.
| Issuer: | Nuveen California Dividend Advantage Municipal Fund 2
|
| Issue: | MuniFund term preferred shares
|
| Amount: | $50 million
|
| Mandatory redemption: | 2015
|
| Settlement date: | Oct. 22
|
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