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NEW YORK, July 29, 2022 /PRNewswire/ -- Neuberger Berman MLP and Energy Income Fund Inc. (NYSE American: NML) (the "Fund") has announced an increase in its monthly distribution rate to $0.02266 per share of common stock from the prior monthly distribution rate of $0.0206 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 August 31, 2022, has a record date of August 15, 2022 and has an ex-date of August 12, 2022.
The new monthly distribution rate of $0.02266 per share represents an annualized distribution per share of $0.27192 versus the prior annualized amount of $0.2472 and results in a distribution rate of approximately 3.26% and 3.98%, of the Fund's net asset value and market price, respectively, as of July 28, 2022. Furthermore, the increase in distribution rate announced today represents the sixth increase in the Fund's distribution rate since June 2020 and an overall increase of approximately 94% in the Fund's monthly distribution rate over that time period.
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, including recently announced increases in distribution rates by certain of 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 and the Fund's ability to generate distributable cash flow.
The Fund remains committed to its investment strategy based on analysis of high quality MLPs and energy companies, with an emphasis on the midstream natural resources sector. 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 2022 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 25 countries, Neuberger Berman's diverse team has over 2,500 professionals. For eight 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 $418 billion in client assets as of June 30, 2022. 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.
Neuberger Berman Investment Advisers LLC
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