Nuveen Dividend Advantage fund registers to sell five-year preferreds

By Angela McDaniels

Tacoma, Wash., Jan. 6 - Nuveen Dividend Advantage Municipal Fund 3 registered to sell MuniFund term preferred shares, series 2016-1, in an N-2 filing with the Securities and Exchange Commission.

The preferreds will have a liquidation preference of $10 each and will be redeemed after five years if not called earlier.

The dividend rate has not yet been set. Dividends will be payable monthly.

The bookrunners have not been selected. Nuveen Investments, LLC will be co-manager.

The fund has applied to list the preferreds on the New York Stock Exchange.

Proceeds will be used to redeem the fund's outstanding municipal auction-rate cumulative preferreds and to maintain its leveraged capital structure.

The fund is a Chicago-based closed-end management investment company.

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