NEUBERGER BERMAN MLP AND ENERGY INCOME FUND ANNOUNCES 157% INCREASE IN DISTRIBUTION RATE AND DECLARATION OF NEXT MONTHLY DISTRIBUTION
Neuberger Berman MLP and Energy Income Fund Inc. (NYSE American: NML) (the "Fund") has announced an increase in its monthly distribution rate to $0.0584 per share of common stock from the prior monthly distribution rate of $0.02266 per share, representing an increase of approximately 157%. The Fund has also declared its next monthly distribution at the new rate, which is payable on December 30, 2022, has a record date of December 15, 2022 and has an ex-date of December 14, 2022
NEW YORK, Nov. 18, 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 $0.0584 per share of common stock from the prior monthly distribution rate of $0.02266 per share, representing an increase of approximately 157%. The Fund has also declared its next monthly distribution at the new rate, which is payable on December 30, 2022, has a record date of December 15, 2022 and has an ex-date of December 14, 2022.
The new monthly distribution rate of $0.0584 per share represents an annualized distribution per share of $0.7008 versus the prior annualized amount of $0.27192 and results in a distribution rate of approximately 10.37% of the Fund's market price and 8.31% of its net asset value, as of November 17, 2022. Furthermore, the increase in distribution rate announced today represents the seventh increase in the Fund's distribution rate since June 2020 and an overall increase of approximately 400% in the Fund's monthly distribution rate over that time period.
In recognition of the Fund's strong total return over the past 12-months the Fund is increasing its distribution rate. The increased distribution is an effort to increase stockholder value, enhance the Fund's competitiveness and increase demand for the Fund's common stock in the secondary market, which may narrow the discount between the market price of the Fund's common stock and its net asset value per share. It has been determined that -- like many other closed-end funds -- it is in the best interests of the Fund and its current stockholders to pay a higher distribution rate, even if that distribution represents a combination of net investment income, capital gains and return of capital. Furthermore, the increased distribution rate can benefit stockholders by providing them with liquidity and flexibility in managing their investment in the Fund. Stockholders have the option of either reinvesting Fund distributions in additional shares of the Fund or to receive distributions in cash.
In recommending and approving, respectively, the increase in the Fund's monthly distribution rate, multiple factors were considered, including, the Fund's total return over various periods both on an absolute basis and compared to other closed-end funds that invest in MLPs, 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 consider other strategies or transactions that may mitigate the discount that the Fund's common stock trades relative to its net asset value.
