NEW
YORK, Nov. 18, 2022 /PRNewswire/
-- Neuberger Berman MLP and Energy Income Fund Inc. (NYSE
American: NML) (the "Fund") has announced an increase in its
monthly distribution rate to $0.0584
per share of common stock from the prior monthly distribution rate
of $0.02266 per share, representing
an increase of approximately 157%. The Fund has also declared its
next monthly distribution at the new rate, which is payable on
December 30, 2022, has a record date
of December 15, 2022 and has an
ex-date of December 14, 2022.
The new monthly distribution rate of $0.0584 per share represents an annualized
distribution per share of $0.7008
versus the prior annualized amount of $0.27192 and results in a distribution rate of
approximately 10.37% of the Fund's market price and 8.31% of its
net asset value, as of November 17,
2022. Furthermore, the increase in distribution rate
announced today represents the seventh increase in the Fund's
distribution rate since June 2020 and
an overall increase of approximately 400% in the Fund's monthly
distribution rate over that time period.
In recognition of the Fund's strong total return over the past
12-months the Fund is increasing its distribution rate. The
increased distribution is an effort to increase stockholder value,
enhance the Fund's competitiveness and increase demand for the
Fund's common stock in the secondary market, which may narrow the
discount between the market price of the Fund's common stock and
its net asset value per share. It has been determined that -- like
many other closed-end funds -- it is in the best interests of the
Fund and its current stockholders to pay a higher distribution
rate, even if that distribution represents a combination of net
investment income, capital gains and return of capital.
Furthermore, the increased distribution rate can benefit
stockholders by providing them with liquidity and flexibility in
managing their investment in the Fund. Stockholders have the option
of either reinvesting Fund distributions in additional shares of
the Fund or to receive distributions in cash.
In recommending and approving, respectively, the increase in the
Fund's monthly distribution rate, multiple factors were considered,
including, the Fund's total return over various periods both
on an absolute basis and compared to other closed-end funds that
invest in MLPs, the amount of distributable cash flow expected to
be received from the Fund's investments, the amount of leverage the
Fund is currently employing, the expected cost of leverage and the
level of other Fund expenses. Management and the Board will
continue to consider other strategies or transactions that may
mitigate the discount that the Fund's common stock trades relative
to its net asset value.
The Fund remains committed to its investment strategy based on
analysis of high quality MLPs and energy companies, with an
emphasis on the midstream natural resources sector. The Fund
currently intends to make regular monthly cash distributions to
holders of its common stock at a fixed rate per share, to be
determined based on the projected net rate of return of the Fund's
investments as well as other factors, subject to ongoing review and
adjustment from time to time. The Fund currently intends to pay its
regular monthly distributions out of its distributable cash flow,
which generally consists of (1) cash and paid-in-kind distributions
from MLPs or their affiliates, dividends from common stocks,
interest from debt instruments and income from other investments
held by the Fund less (2) current or accrued operating expenses,
including leverage costs, if any, and taxes on its taxable
income.
The Fund expects that a portion of its distributions to
stockholders will constitute a non-taxable return of capital. A
"return of capital" is a distribution by the Fund which represents
a return of a common stockholder's original investment, and should
not be confused with a dividend. To the extent the Fund pays a
return of capital, a common stockholder's basis in Fund
shares will be reduced, which will increase a capital gain or
reduce a capital loss upon sale of those shares. There is no
assurance that the Fund will always be able to pay distributions of
a particular size, or that a distribution will consist solely of
the Fund's current and accumulated earnings and profits.
In compliance with Section 19 of the Investment Company Act of
1940, as amended, a notice would be provided for any distribution
that does not consist solely of income. The notice would be for
informational purposes and not for tax reporting purposes, and
would disclose, among other things, estimated portions of the
distribution, if any, consisting of net investment income, capital
gains and return of capital. The final determination of the source
and tax characteristics of all distributions paid in 2022 will be
made after the end of the year.
The Fund is subject to federal income tax on its taxable income,
unlike most investment companies. Any taxes paid by the Fund will
reduce the amount available to pay distributions to stockholders,
and therefore investors in the Fund will likely receive lower
distributions than if they invested directly in MLPs.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent,
employee-owned investment manager. The firm manages a range of
strategies—including equity, fixed income, quantitative and
multi-asset class, private equity, real estate and hedge funds—on
behalf of institutions, advisors and individual investors globally.
With offices in 26 countries, Neuberger Berman's diverse team has
over 2,600 professionals. For eight consecutive years, the company
has been named first or second in Pensions & Investments Best
Places to Work in Money Management survey (among those with 1,000
employees or more). Neuberger Berman is a PRI Leader, a
designation, since last assessed, that was awarded to fewer than 1%
of investment firms for excellence in Environmental, Social and
Governance (ESG) practices. In the 2021 PRI Assessment, the firm
obtained the highest possible scoring for its overarching
approach to ESG investment and stewardship, and integration across
asset classes. The firm manages $408
billion in client assets as of September 30, 2022. For more information, please
visit our website at www.nb.com.
Statements made in this release that look forward in time
involve risks and uncertainties. Such risks and uncertainties
include, without limitation, the adverse effect from a decline in
the securities markets or a decline in the Fund's performance, a
general downturn in the economy, competition from other closed end
investment companies, changes in government policy or regulation,
inability of the Fund's investment adviser to attract or retain key
employees, inability of the Fund to implement its investment
strategy, inability of the Fund to manage rapid expansion and
unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory
organizations.
Contact:
Neuberger Berman Investment Advisers
LLC
Investor Information
(877) 461-1899
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SOURCE Neuberger Berman