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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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