Nuveen muni funds call $590.65 million of auction-rate preferreds

By Angela McDaniels

Tacoma, Wash., Aug. 19 - Nuveen Investments said that four of its closed-end funds will redeem at par all of their auction-rate preferred shares, which total $590.65 million.

The Nuveen California Quality Income Municipal Fund, Inc. will redeem $157,225,000 of preferreds, including:

• $63.75 million of series F preferreds on Sept. 9;

• $29,725,000 of series M preferreds on Sept. 10; and

• $63.75 million of series W preferreds on Sept. 14.

The Nuveen California Select Quality Municipal Fund, Inc. will redeem $158,025,000 of preferreds, including:

• $74,075,000 of series TH preferreds on Sept. 8;

• $49,375,000 of series T preferreds on Sept. 13; and

• $34,575,000 of series W preferreds on Sept. 14.

The Nuveen New York Investment Quality Municipal Fund, Inc. will redeem $111.5 million of preferreds, including:

• $46.45 million of series F preferreds on Sept. 9;

• $18.6 million of series M preferreds on Sept. 10; and

• $46.45 million of series T preferreds on Sept. 13.

Finally, the Nuveen New York Select Quality Municipal Fund, Inc. will redeem $163.9 million of preferreds, including:

• $76,425,000 of series TH preferreds on Sept. 8;

• $36,525,000 of series T preferreds on Sept. 13; and

• $50.95 million of series W preferreds on Sept. 14.

Each fund will finance the redemption of its preferreds with the proceeds from an issue of variable-rate demand preferreds. The California Quality fund issued $158.1 million of these securities, the California Select fund issued $158.9 million, the New York Investment fund issued $112.3 million, and the New York Select fund issued $164.8 million.

Nuveen, a Chicago-based provider of investment services, said the refinancings are expected to lower the relative costs of leverage for the funds over time while also providing liquidity at par for the holders of the auction-rate preferreds.

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