NEW YORK, Jan. 29, 2021 /PRNewswire/ -- Neuberger Berman
MLP and Energy Income Fund Inc. (NYSE American: NML) (the
"Fund") has announced an increase in its monthly distribution rate
to $0.0148 per share of common stock
from the prior monthly distribution rate of $0.01345 per share, representing an increase of
approximately 10%. The Fund has also declared its next monthly
distribution at the new rate, which is payable on February 26, 2021, has a record date of
February 16, 2021 and has an ex-date
of February 12, 2021.
The new monthly distribution rate of $0.0148 per share represents an annualized
distribution per share of $0.1776
versus the prior annualized amount of $0.1614 and results in a distribution rate of
approximately 3.68% and 4.87%, of the Fund's net asset value and
market price, respectively, as of January
28, 2021.
Management and the Fund's Board of Directors (the "Board") have
closely monitored the master limited partnership ("MLP") and energy
markets, as well as the expected impact of market conditions on the
Fund's earnings. In recommending and approving, respectively, the
increase in the Fund's monthly distribution rate, Management and
the Board considered, among other factors, 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 closely
monitor market conditions, the Fund's ability to generate
distributable cash flow and the expected impact on the Fund's
earnings.
The Fund remains committed to its investment strategy dedicated
to comprehensive analysis of high quality MLPs and energy
companies, with an emphasis on the midstream natural resources
sector. Due to recent market volatility and the associated changes
that have and may continue to occur with MLPs and other energy
companies, as well as the impact that these changes continue to
have on closed-end funds that invest in MLPs, the Fund will
continue to evaluate the stability and appropriateness of its
distribution rate in the months ahead.
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 2021 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 24 countries, Neuberger Berman's diverse team has
over 2,300 professionals. For seven 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 $405
billion in client assets as of December 31, 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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