N@N

Two Nuveen Closed-End Funds Announce Pricing and Placement of $741 Million Private Offering of VRDP

^{Published on 2010-12-28 13:50:53 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Nuveen Investments, a leading global provider of investment services to institutions and high-net-worth investors, today announced that the Nuveen Insured Municipal Opportunity Fund, Inc. (NYSE: NIO) and Nuveen Insured California Premium Income Municipal Fund 2, Inc. (NYSE: NCL) have completed private offerings of Variable Rate Demand Preferred (VRDP) shares placed with qualified institutional buyers of $667.2 million and $74 million respectively, as defined pursuant to Rule 144A under the Securities Act of 1933.

The proceeds from each offering will be used to redeem at par all of the fundsa™ outstanding auction-rate preferred shares (ARPS). The fundsa™ Board of Trustees has approved each redemption, which total more than $738 million. Each refinancing is expected to lower the relative costs of leverage for the funds over time while also providing liquidity at par for the holders the fundsa™ ARPS.

VRDP shares include a liquidity feature that allows holders of VRDP to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. The liquidity feature for these fundsa™ VRDP is being provided by Citibank, N.A. The VRDP shares comply with the requirements of IRS Notice 2008-55, as extended by IRS Notice 2010-03, and qualify as equity for income tax purposes. This affords VRDP share dividends the same tax treatment as the income on the funda™s underlying investments, notwithstanding VRDP terms that require the fund to redeem VRDP shares still owned by the liquidity provider if there are six months of continuous, unsuccessful remarketing.

VRDP dividends will be set weekly at a rate established by Citigroup Global Markets Inc. as remarketing agent, subject to a maximum rate which will increase over time in the event of an extended period of unsuccessful remarketing.

This notice is being provided pursuant to Regulation FD (Fair Disclosure) to ensure that the funda™s common and preferred shareholders have been informed of the funda™s issuance of VRDP and its intention to redeem its outstanding ARPS, which may not occur as scheduled.

No VRDP shares have been registered under the Securities Act of 1933 (the Securities Act) or any state securities laws.Unless so registered, no VRDP shares may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.

Nuveen Investments provides high quality investment services designed to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds, Winslow Capital and Nuveen HydePark. In total, the Company managed nearly $163 billion as of September 30, 2010. For more information, please visit the Nuveen Investments website at [ www.nuveen.com ].

FORWARD LOOKING STATEMENTS

Certain statements made in this release are forward-looking statements.Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to:

• market developments;
• legal and regulatory developments; and
• other additional risks and uncertainties.

Nuveen and the closed-end funds managed by Nuveen and its affiliates undertake no responsibility to update publicly or revise any forward-looking statements.