NEW
YORK, Jan. 13, 2025 /PRNewswire/ -- Neuberger
Berman Real Estate Securities Income Fund Inc. (NYSE American:
NRO) (the "Fund") has announced 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, January 23, 2025 (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
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 than 90% 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 90% 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
Ridgefield Park, NJ 07660
(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 90%
of its total assets in income-producing common equity securities,
preferred securities, convertible securities and non-convertible
debt securities issued by real estate companies, including real
estate investment trusts. The Fund may invest up to 20% of its
total assets in debt securities of any credit quality (including
convertible and non-convertible debt securities) and up to 10% of
its total assets in securities of non-U.S. issuers located in
industrialized countries.
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 $509
billion of equities, fixed income, private equity, real
estate and hedge fund portfolios for global institutions, advisors
and individuals. Neuberger Berman's investment philosophy is
founded on active management, fundamental research and engaged
ownership. The PRI identified the firm as part of the Leader's
Group, a designation awarded to fewer than 1% of investment firms
for excellence in environmental, social and governance practices.
Neuberger Berman has been named by Pensions & Investments as
the #1 or #2 Best Place to Work in Money Management for each of the
last ten years (firms with more than 1,000 employees). Visit
www.nb.com for more information. Data as of September 30, 2024.
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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/neuberger-berman-real-estate-securities-income-fund-announces-rights-offering-and-summary-of-terms-302349792.html
SOURCE Neuberger Berman