Neuberger Berman High Yield Strategies Fund Announces Final Results of Its Tender Offer and Reduction in Leverage

Rhea-AI Summary

Neuberger Berman High Yield Strategies Fund (NYSE American: NHS) announced the final results of its oversubscribed tender offer, purchasing 25% of its outstanding shares at 96% of the net asset value (NAV) of $12.53, priced at $12.03 per share. A total of 6,666,834 shares were tendered, with 4,885,146 shares accepted, resulting in a pro-ration factor of 73.28%. Additionally, the Fund reduced its leverage from $125 million to $95.5 million by redeeming Preferred Shares and prepaying Senior Notes.

Positive

• Oversubscribed tender offer indicates strong demand for shares.
• Effective share buyback reduces the number of outstanding shares by 25%, potentially increasing NAV and shareholder value.
• Reduction in leverage enhances the Fund's financial stability, decreasing leverage from $125 million to $95.5 million.

Negative

• Dependence on market performance means future results could be adversely affected by economic downturns or declines in securities markets.

NEW YORK, Dec. 14, 2020 /PRNewswire/ -- Neuberger Berman High Yield Strategies Fund Inc. (NYSE American: NHS) (the "Fund") announced today the final results of its tender offer for up to 25% of its outstanding shares of common stock for cash at a price per share equal to 96% of its net asset value per share ("NAV") determined on December 10, 2020.  The tender offer, which expired at 5:00 p.m., New York City time, on December 10, 2020, was oversubscribed. 

In accordance with the terms of the offer, since the tender offer was oversubscribed, the Fund will purchase 25% of its outstanding shares of common stock on a pro-rata basis, with appropriate adjustment to avoid purchase of fractional shares of common stock, based on the number of shares properly tendered (the "Pro-Ration Factor").  The final results of the tender offer are provided in the table below.

Number of Shares Tendered	Number of Tendered Shares to be Purchased	Pro-Ration Factor	NAV on December 10, 2020	Purchase Price (96% of NAV on December 10, 2020)	Number of Shares Outstanding After Tender Offer
6,666,834	4,885,146	73.27541%	$12.53	$12.03	14,655,439

The Fund will purchase the shares of common stock that it has accepted for payment as promptly as practicable.  Stockholders who have questions regarding the tender offer should contact their financial advisors or call AST Fund Solutions, LLC, the information agent for the tender offer, at (877) 478-5039 (toll free).

Reduction in Leverage

In connection with the reduction in the Fund's asset level following the tender offer, and in order to maintain what Management and the Fund's Board of Directors believe to be an appropriate level of leverage, the Fund also announced today that it has reduced the total amount of leverage it employs.  Accordingly, the Fund has redeemed a portion of its outstanding Mandatory Redeemable Preferred Shares ("Preferred Shares") and prepaid a portion of its outstanding Floating Rate Senior Notes ("Notes").  The total amount of leverage employed by the Fund has been reduced from $125 million to $95.5 million, consisting of $76 million of Preferred Shares and $19.5 million of Notes. 

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 24 countries, Neuberger Berman's diverse team has over 2,300 professionals. For six 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). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $374 billion in client assets as of September 30, 2020. 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.

Investor Contact:                                                                              
Neuberger Berman Investment Advisers LLC                                                 
Investor Information
(877) 461-1899

Media Contact:
Alexander Samuelson
Neuberger Berman
(212) 476-5392
Alexander.Samuelson@nb.com

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SOURCE Neuberger Berman

FAQ

What were the results of Neuberger Berman's tender offer on December 10, 2020?

The tender offer was oversubscribed, with 6,666,834 shares tendered and 4,885,146 shares accepted at a purchase price of $12.03, which is 96% of the NAV of $12.53.

How much leverage did Neuberger Berman reduce after the tender offer?

Neuberger Berman reduced its leverage from $125 million to $95.5 million following the tender offer.

What is the pro-ration factor for the shares accepted in the tender offer by Neuberger Berman?

The pro-ration factor for shares accepted in the tender offer was 73.28%.

What is the significance of the tender offer for Neuberger Berman's shareholders?

The tender offer allows shareholders to sell shares at a premium to NAV, potentially enhancing value and liquidity.