NEUBERGER BERMAN REAL ESTATE SECURITIES INCOME FUND ANNOUNCES RIGHTS OFFERING AND SUMMARY OF TERMS
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO) has announced a rights offering, allowing current shareholders to purchase additional common stock at a discount. The offering will begin on January 23, 2025, with stockholders receiving one right for each share owned, enabling them to purchase one new share for every three rights held.
The subscription price will be set at 92.5% of the average stock price over five trading days ending on February 19, 2025 (expiration date), or 90% of NAV if that's higher. Rights will be transferable and trade on NYSE American. The fund aims to maintain current distribution levels, with new shares eligible for March distribution.
The offering's key benefits include: new capital for investment opportunities, stockholder ability to purchase below market or sell rights, potential reduced expense ratio, and increased trading volume. Rights will trade under 'NRO RTWI' (when-issued) starting January 22, and 'NRO RT' from January 24.
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO) ha annunciato un'offerta di diritti, consentendo agli azionisti attuali di acquistare azioni ordinarie aggiuntive a un prezzo scontato. L'offerta avrà inizio il 23 gennaio 2025, con gli azionisti che riceveranno un diritto per ogni azione posseduta, permettendo loro di acquistare un'azione nuova per ogni tre diritti detenuti.
Il prezzo di sottoscrizione sarà fissato al 92,5% del prezzo medio delle azioni nelle cinque sedute di mercato che terminano il 19 febbraio 2025 (data di scadenza), o al 90% del NAV se questo risulta più alto. I diritti saranno trasferibili e negoziati su NYSE American. Il fondo punta a mantenere i livelli attuali di distribuzione, con le nuove azioni idonee per la distribuzione di marzo.
I principali vantaggi dell'offerta includono: nuovo capitale per opportunità di investimento, possibilità per gli azionisti di acquistare sotto il mercato o vendere diritti, potenziale riduzione del rapporto delle spese e aumento del volume di scambi. I diritti saranno negoziati sotto 'NRO RTWI' (in attesa di emissione) a partire dal 22 gennaio, e 'NRO RT' dal 24 gennaio.
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO) ha anunciado una oferta de derechos, permitiendo a los accionistas actuales comprar acciones comunes adicionales a un descuento. La oferta comenzará el 23 de enero de 2025, con los accionistas recibiendo un derecho por cada acción que posean, lo que les permite comprar una nueva acción por cada tres derechos que tengan.
El precio de suscripción se establecerá en el 92,5% del precio promedio de las acciones durante cinco días de negociación que finalizan el 19 de febrero de 2025 (fecha de expiración), o el 90% del NAV si esto es mayor. Los derechos serán transferibles y se negociarán en NYSE American. El fondo tiene como objetivo mantener los niveles actuales de distribución, con las nuevas acciones elegibles para la distribución de marzo.
Los beneficios clave de la oferta incluyen: nuevo capital para oportunidades de inversión, la capacidad de los accionistas para comprar por debajo del mercado o vender derechos, una posible reducción de la relación de gastos y un aumento en el volumen de negociación. Los derechos se negociarán bajo 'NRO RTWI' (cuando se emita) a partir del 22 de enero y 'NRO RT' a partir del 24 de enero.
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO)는 현재 주주들이 할인된 가격으로 추가 보통주를 구매할 수 있도록 권리 공모를 발표했습니다. 이 공모는 2025년 1월 23일에 시작되며, 주주들은 소유한 주식 한 주당 하나의 권리를 받아, 보유한 세 개의 권리당 하나의 새로운 주식을 구매할 수 있게 됩니다.
청약 가격은 2025년 2월 19일(만료일) 종료되는 5일 거래일 동안의 평균 주식 가격의 92.5%로 정해지며, 더 높은 경우에는 NAV의 90%가 적용됩니다. 권리는 양도 가능하며 NYSE American에서 거래됩니다. 이 펀드는 현재 배당 수준을 유지하는 것을 목표로 하며, 새로운 주식은 3월 배당 대상이 됩니다.
이 공모의 주요 이점으로는: 투자 기회에 대한 새로운 자본, 주주가 시장보다 저렴하게 구매하거나 권리를 판매할 수 있는 능력, 비용 비율 감소 가능성, 거래량 증가 등이 있습니다. 권리는 1월 22일부터 'NRO RTWI'(발행 예정)로 거래되고, 1월 24일부터 'NRO RT'로 거래됩니다.
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO) a annoncé une offre de droits, permettant aux actionnaires actuels d'acheter des actions ordinaires supplémentaires à prix réduit. L'offre débutera le 23 janvier 2025, les actionnaires recevant un droit pour chaque action détenue, leur permettant d'acheter une nouvelle action pour chaque trois droits détenus.
Le prix de souscription sera fixé à 92,5 % du prix moyen des actions sur cinq jours de négociation se terminant le 19 février 2025 (date d'expiration), ou 90 % de la valeur liquidative si cela est plus élevé. Les droits seront transférables et se négocieront à la NYSE American. Le fonds vise à maintenir les niveaux de distribution actuels, avec de nouvelles actions éligibles pour la distribution de mars.
Les principaux avantages de l'offre comprennent : nouveau capital pour des opportunités d'investissement, possibilité pour les actionnaires d'acheter en dessous du marché ou de vendre des droits, potentiel de réduction du ratio de dépenses, et augmentation du volume de négociation. Les droits seront négociés sous 'NRO RTWI' (en attente d'émission) à partir du 22 janvier et 'NRO RT' à partir du 24 janvier.
Neuberger Berman Real Estate Securities Income Fund (NYSE American: NRO) hat ein Bezugsangebot angekündigt, das es den aktuellen Aktionären ermöglicht, zusätzliche Stammaktien zu einem ermäßigten Preis zu erwerben. Das Angebot beginnt am 23. Januar 2025, wobei die Aktionäre ein Recht für jede gehaltene Aktie erhalten, wodurch sie für drei gehaltene Rechte eine neue Aktie erwerben können.
Der Bezugspreis wird auf 92,5 % des durchschnittlichen Aktienkurses der fünf Handelstage festgelegt, die am 19. Februar 2025 (Ablaufdatum) enden, oder 90 % des NAV, falls dieser höher ist. Die Rechte sind übertragbar und werden an der NYSE American gehandelt. Der Fonds zielt darauf ab, die aktuellen Ausschüttungsniveaus beizubehalten, wobei neue Aktien für die Ausschüttung im März berechtigt sind.
Die wichtigsten Vorteile des Angebots sind: neues Kapital für Investitionsmöglichkeiten, die Möglichkeit für Aktionäre, unter Marktwert zu kaufen oder Rechte zu verkaufen, potenziell reduzierte Kostenquote und erhöhtes Handelsvolumen. Die Rechte werden ab dem 22. Januar unter 'NRO RTWI' (vorläufige Ausgabe) und ab dem 24. Januar unter 'NRO RT' gehandelt.
- Offering allows shareholders to purchase additional shares at a discount to market price
- Fund expects to maintain current distribution levels
- Potential reduction in total expense ratio through larger asset base
- Possible increase in trading volume and stock liquidity
- Opportunity for existing shareholders to participate in oversubscription
- Offering expenses will be borne by existing shareholders
- Potential dilution for shareholders who don't participate in the offering
Insights
This rights offering represents a significant capital raising event for NRO, allowing existing shareholders to purchase additional shares at a 7.5% discount to market price (or 10% discount to NAV, whichever provides greater shareholder protection). The 1-for-3 rights structure means for every 3 shares owned, stockholders can purchase 1 new share.
The offering's structure is notably shareholder-friendly, featuring transferable rights that will trade on NYSE American and providing existing shareholders with anti-dilution protection through the right of first refusal on additional shares. The pricing mechanism with a built-in floor at 90% of NAV helps protect against excessive dilution.
Key benefits include potential operational efficiency through reduced expense ratios, enhanced portfolio management flexibility with new capital deployment opportunities and improved stock liquidity. The commitment to maintain current distribution levels post-offering is particularly important for income-focused investors.
The timing of this rights offering aligns with potential opportunities in the real estate securities market. With REITs trading at attractive valuations and the potential for interest rate cuts on the horizon, the additional capital could allow NRO to strategically expand its portfolio at advantageous entry points.
The transferability of rights adds significant value, as it allows shareholders who choose not to participate to monetize their rights through market sales. The "when-issued" trading starting January 22 under symbol "NRO RTWI" provides immediate price discovery and liquidity for these rights.
The fund's market cap of
After considering a number of factors, including potential benefits and costs, it was determined that it is in the best interests of both the Fund and its stockholders to conduct the Offer and increase the assets of the Fund available to take advantage of investment opportunities, consistent with the Fund's primary investment objective to seek high current income and its secondary investment objective, capital appreciation.
The Fund's investment adviser, Neuberger Berman Investment Advisers LLC, believes this is an attractive time to raise additional assets for the Fund based on several factors, including the following potential benefits:
- The Offer provides the Fund with new proceeds to capitalize on attractive investment opportunities, potentially enhancing the long-term returns of the Fund.
- The Offer provides common stockholders with an opportunity to buy Common Stock below market price or realize value from the sale of Rights.
- Anticipated positive impact to total expense ratio by spreading fixed costs over a larger asset base.
- Potential for increased trading volume and liquidity of NRO Common Stock.
The Fund expects to maintain its current distribution level following the Offer. Additionally, the Fund has declared a regular monthly distribution payable on January 31, 2025, with a record date of January 16, 2025, and a regular monthly distribution payable on February 28, 2025, with a record date of February 6, 2025, neither of which will be payable with respect to Common Stock that is issued pursuant to the Offer as such issuance will occur after these record dates. Common Stock issued pursuant to the Offer will be entitled to receive the monthly distribution expected to be payable in March.
Certain key terms of the Offer include:
- Holders of Common Stock on the Record Date ("Record Date Stockholders") will receive one Right for each outstanding share of Common Stock owned on the Record Date. The Rights entitle the holders to purchase one new share of Common Stock for every three Rights held (1-for-3); however, any Record Date Stockholder who owns fewer than three shares of Common Stock as of the Record Date will be entitled to subscribe for one share of Common Stock. Fractional shares of Common Stock will not be issued.
- The subscription price per share of Common Stock (the "Subscription Price") will be determined on the expiration date of the Offer, which is currently expected to be February 19, 2025, unless extended by the Fund (the "Expiration Date"), and will be equal to
92.5% of the average of the last reported sales price of a share of Common Stock of the Fund on the NYSE American on the Expiration Date and each of the four (4) immediately preceding trading days (the "Formula Price"). If, however, the Formula Price is less than90% of the Fund's net asset value ("NAV") per share of Common Stock at the close of trading on the NYSE American on the Expiration Date, the Subscription Price will be90% of the Fund's NAV per share of Common Stock at the close of trading on the NYSE American on that day. - Record Date Stockholders who fully exercise all Rights issued to them can subscribe, subject to certain limitations and allotment, for any additional shares of Common Stock which were not subscribed for by other holders of Rights at the Subscription Price. Investors who are not Record Date Stockholders but who otherwise acquire Rights, including in the secondary market, are currently expected not to be entitled to subscribe for any additional shares of Common Stock. If sufficient shares of Common Stock are available, all Record Date Stockholders' over-subscription requests will be honored in full. If these requests exceed available shares of Common Stock, they will be allocated pro rata among those fully exercising Record Date Stockholders who over-subscribe based on the number of Rights originally issued to them by the Fund.
- Rights will be transferable and are expected to be admitted for trading on the NYSE American under the symbol "NRO RTWI", initially trading "when-issued" on January 22, 2025. The Rights will begin trading with regular settlement under the symbol "NRO RT" on or about January 24. The rights will cease trading at the close on February 18, 2025, one day before the Offer's Expiration Date (unless extended). During the course of the Offer, common stockholders may choose to sell their Rights.
The Offer will be made only by means of a prospectus supplement and accompanying prospectus. The Fund expects to disseminate subscription certificates evidencing the Rights and a copy of the prospectus supplement and accompanying prospectus for the Offer to Record Date Stockholders shortly following the Record Date. Brokers, custodians or trust companies may send notices to common stockholders shortly thereafter. To exercise or sell their Rights, common stockholders who hold their Common Stock through a broker, custodian or trust company should contact such entity to forward their instructions to either exercise or sell their Rights on their behalf. Common stockholders who do not hold Common Stock through a broker, custodian, or trust company should forward their instructions to either exercise or sell their Rights by completing the subscription certificate and delivering it to the subscription agent for the Offer, together with their payment, at one of the locations indicated on the subscription certificate or in the prospectus supplement.
The Fund will pay expenses associated with the Offer, which will be borne indirectly by the Fund's common stockholders. The Fund reserves the right to modify, postpone or cancel the Offer.
The information in this press release is not complete and is subject to change. This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus. Investors should consider the Fund's investment objective, risks, charges and expenses carefully before investing. The Fund's prospectus supplement and accompanying prospectus will contain this and additional information about the Fund and additional information about the Offer and should be read carefully before investing. For further information regarding the Offer, or to obtain a prospectus supplement and the accompanying prospectus, when available, please contact the Fund's information agent:
EQ Fund Solutions, LLC
55 Challenger Road, 2nd Floor
(866) 387-0017
About Neuberger Berman Real Estate Securities Income Fund Inc. The Fund's investment objective is high current income. Capital appreciation is a secondary investment objective for the Fund. Under normal market conditions, the Fund invests at least
About Neuberger Berman
Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages
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
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