Neuberger Berman High Yield Strategies Fund Announces Leverage Refinancing Transaction

Rhea-AI Summary

On August 5, 2020, Neuberger Berman High Yield Strategies Fund Inc. (NHS) announced the successful refinancing of its leverage through a private placement of 7.6 million Mandatory Redeemable Preferred Shares, totaling $95 million. The Fund used the proceeds to prepay Floating Rate Senior Notes and repurchase previously issued preferred stock, maintaining its leverage level. This refinance aims to better position the Fund against market volatility and ensure compliance with asset coverage requirements.

Positive

• Successfully refinanced leverage with $95 million in Preferred Shares.
• Maintained leverage level while ensuring compliance with asset coverage requirements.
• Strategic move enhances ability to withstand market volatility.

Negative

• None.

NEW YORK, Aug. 5, 2020 /PRNewswire/ -- Neuberger Berman High Yield Strategies Fund Inc. (NYSE American: NHS) (the "Fund") announced today that it has successfully refinanced a portion of its leverage by completing a private placement of 7,600,000 Mandatory Redeemable Preferred Shares (the "Preferred Shares") with an aggregate liquidation preference of $95,000,000 to a major unaffiliated financial institution. The Preferred Shares pay dividends based on a floating rate and have a term of three years. The Fund used the proceeds from the issuance of the Preferred Shares, without interrupting its leveraged investment program, to prepay a portion of its outstanding Floating Rate Senior Notes and repurchase preferred stock it had previously issued. In connection with the refinance transaction announced today, the total amount of leverage employed by the Fund has not changed. 

The leverage refinancing announced today follows recent periods of extreme market volatility, during which management and the Fund's Board of Directors (the "Board") closely monitored, among other things, the amount of leverage employed by the Fund, as well as the effect of market conditions on the value of the Fund's investments and the Fund's ability to comply with the asset coverage requirements of the Investment Company Act of 1940, as amended.  Management and the Board believe that the amended leverage structure announced today provides the Fund with an enhanced ability to withstand potential market volatility and better positions the Fund to avoid having to sell securities into volatile markets in order to comply with required asset coverage levels.

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 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). The firm was awarded an A+ in every category in the latest 2019 PRI report for our approach to ESG integration across asset classes. The firm manages $357 billion in client assets as of June 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.

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

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SOURCE Neuberger Berman

FAQ

What was announced by Neuberger Berman High Yield Strategies Fund on August 5, 2020?

The Fund announced a successful refinancing of leverage through a private placement of 7.6 million Mandatory Redeemable Preferred Shares.

What is the total value of the Preferred Shares issued by NHS?

The total value of the Preferred Shares issued is $95 million.

What is the purpose of the refinancing announced by NHS?

The refinancing aims to prepay Floating Rate Senior Notes and maintain compliance with asset coverage requirements.

How does the refinancing benefit the NHS fund in the current market?

It enhances the Fund's ability to withstand potential market volatility and avoid forced asset sales.