Nuveen California municipal fund completes offering of preferreds

By Cristal Cody

Tupelo, Miss., Sept. 17 - Nuveen Investments, LLC announced late Friday that the Nuveen California Premium Income Municipal Fund successfully completed the public offering of $35.25 million in MuniFund term preferred shares.

The preferreds have a mandatory redemption period of five years.

MuniFund term preferred shares are a fixed-rate form of preferred stock with a mandatory redemption period.

The fund said it issued the shares "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."

Proceeds will be used to refinance all of Nuveen California Premium Income Municipal Fund's outstanding auction-rate preferred securities.

The preferreds are expected to trade on the New York Stock Exchange under the symbol "NCU PrC" within 30 days of issuance. The fund's shares closed up 11 cents, or 0.8%, at $13.93 (NYSE Amex: NCU) on Friday.

Chicago-based Nuveen Investments provides investment services to institutions and investors.

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