NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces the Preliminary Results of its Rights Offering
The NXG NextGen Infrastructure Income Fund (NYSE: NXG) has announced the preliminary results of its transferable rights offering, which concluded on July 17, 2024. The offer, which began on June 20, 2024, allowed rights holders to subscribe for up to 867,238 common shares at a price of $37.25 per share. This price was set at 86% of the Fund's net asset value per share at the close of trading on the expiration date.
The offering was oversubscribed, indicating strong investor interest. The Fund expects to raise approximately $32,000,000 in gross proceeds, which it plans to invest in line with its investment objective and policies. Common shares will be issued after the completion of shareholder payments and the pro-rata allocation of shares for the over-subscription privilege.
- Oversubscribed rights offering indicates strong investor demand
- Expected gross proceeds of approximately $32,000,000
- Subscription price set at a 14% discount to NAV, potentially attractive for investors
- Potential dilution for existing shareholders who did not fully participate in the offering
Navigating the results of NXG's rights offering reveals significant insights for retail investors. The Fund announced the preliminary results of its transferable rights offering, which was oversubscribed, highlighting strong investor interest and confidence in the Fund's strategy. The offerings were priced at $37.25 per Common Share, set at 86% of the Fund's net asset value (NAV) per share, indicating a compelling discount designed to encourage participation.
Moreover, the gross proceeds from the offering are projected to be approximately
Short-term, investors might see an adjustment period as the market absorbs the additional shares. Long-term, the raised capital, if invested wisely, can contribute to the Fund's growth and long-term returns. Investors should monitor how effectively the Fund allocates these proceeds and the subsequent performance of the investments made.
Gross proceeds of the Offer are expected to be approximately
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 objectives, risks, charges and expenses carefully before investing. Such information, including other information about the Fund, can be found on file with the Securities and Exchange Commission and should be read carefully before investing.
About NXG Investment Management
The Investment Adviser is an SEC-registered investment adviser headquartered in
About NXG NextGen Infrastructure Income Fund
The Fund is a closed-end management investment company with an investment objective of seeking a high total return with an emphasis on current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least
There can be no assurance that the Fund will achieve its investment objectives. Investments in the Fund involve operating expenses and fees. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value.
The Fund utilizes leverage as part of its investment strategy. There can be no assurance that the Fund will achieve its investment objectives.
For information about the Fund, please contact your financial advisor.
Contact:
Blake Nelson
NXG Investment Management
214-692-6334
www.nxgim.com
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
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SOURCE NXG Investment Management
FAQ
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