NEW
YORK, May 11, 2023 /PRNewswire/ -- Neuberger
Berman High Yield Strategies Fund Inc. (NYSE American: NHS)
(the "Fund") announced today approval of the terms of the issuance
of transferable rights ("Rights") to the holders of the Fund's
common stock (par value $0.0001 per
share) ("Common Stock"), as of the record date, May 23, 2023 (the "Record Date"). Holders of
these Rights will be entitled to subscribe for additional shares of
Common Stock (the "Offer") at a discount to market price.
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
investment objective to seek high total return (income plus 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 within non-investment-grade
credit, potentially enhancing the long-term returns of the
Fund
- The Offer provides common stockholders 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 NHS
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 May
31, 2023, with a record date of May
15, 2023, and a regular monthly distribution payable on
June 30, 2023, with a record date of
June 5, 2023, 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
July.
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 by the Fund on the
expiration date of the Offer, which is currently expected to be
June 21, 2023, unless extended by the
Fund (the "Expiration Date"). The Subscription Price 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 than
89% 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 be 89% 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 that 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
not 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 are transferable and are expected to be admitted for
trading on the NYSE American under the symbol "NHS RT" during the
course of the Offer. The last day Rights will trade will be one
business day before the Offer's Expiration Date (June 20, 2023, unless extended). During the
course of the Offer, Record Date 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 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:
AST Fund Solutions, LLC
55 Challenger Road, Suite 201
Ridgefield Park, NJ 07660
(866) 387-9392
About Neuberger Berman High Yield Strategies Fund
Inc. The Fund's investment objective is to seek high total
return (income plus capital appreciation). Under normal market
conditions, the Fund invests at least 80% of its total assets in
high yield debt (below investment grade) securities of U.S. and
foreign issuers. The Fund may invest up to 20% of its total
assets in other securities and financial instruments, and up to 15%
of its total assets in collateralized loan obligations.
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 26 countries, Neuberger Berman's diverse team has
over 2,700 professionals. For nine 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). Neuberger Berman is a PRI Leader, a
designation, since last assessed, that was awarded to fewer than 1%
of investment firms for excellence in Environmental, Social and
Governance (ESG) practices. In the 2021 PRI Assessment, the firm
obtained the highest possible scoring for its overarching
approach to ESG investment and stewardship, and integration across
asset classes. The firm manages $436
billion in client assets as of March
31, 2023. 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