By Stephanie N. Rotondo
Portland, Ore., June 6 - Nuveen California Dividend Advantage Municipal Fund 3 sold $44 million of MuniFund term preferred shares, series 2014-1, according to a press release.
The preferreds were issued at $10 each.
Dividends are payable monthly.
The preferreds are subject to mandatory redemption on July 1, 2014, though the company can choose to redeem the shares early after July 1, 2012. If the preferreds are redeemed early, holders will receive a premium through June 30, 2013.
Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Nuveen Securities LLC is the co-manager.
Proceeds will be used to refinance and redeem all of the fund's outstanding municipal auction-rate cumulative preferred shares and to maintain the fund's leveraged capital structure.
Nuveen California will apply to list the shares under the symbol "NZH Pr B."
The fund is managed by Chicago-based Nuveen Investments.
| Issuer: | Nuveen California Dividend Advantage Municipal Fund 3
|
| Securities: | MuniFund term preferred shares, series 2014-1
|
| Amount: | $44 million
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| Price: | $10 per share
|
| Redemption: | Mandatory on July 1, 2014, optional after July 1, 2012; premium applicable through June 30, 2013
|
| Bookrunners: | Morgan Stanley & Co. Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-manager: | Nuveen Securities LLC
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