Neuberger Berman Real Estate Securities Income Fund Inc. Announces Issuance of Mandatory Redeemable Preferred Shares
NEW YORK, Sept. 27, 2012 /PRNewswire/ -- Neuberger Berman Real Estate Securities Income Fund Inc. (NYSE MKT: NRO) (the "Fund") has announced that it successfully completed the issuance of $25,000,000 of Mandatory Redeemable Preferred Shares (the "Preferred Shares"). The Preferred Shares are exempt from registration under the Securities Act of 1933, as amended, have a per share liquidation preference of $25,000, pay dividends based on an annual fixed rate of 4% and have a term of five years, unless extended.
By issuing the Preferred Shares, the Fund seeks to take advantage of the current interest rate environment that the Fund believes allows it to lock in an attractive fixed-rate cost of financing for a portion of its leverage for a specified period. The Fund continues to utilize debt financing in the form of a committed credit facility for the remainder of its leverage. In the current market environment, the combination of equity and debt leverage may help provide greater flexibility and protection to the Fund. The total amount of the Fund's leverage has increased slightly as a result of issuing the Preferred Shares.
About Neuberger Berman
Neuberger Berman is a private, independent, employee-controlled investment manager. It partners with institutions, advisors and individuals throughout the world to customize solutions that address their needs for income, growth and capital preservation. With more than 1,700 professionals focused exclusively on asset management, it offers an investment culture of independent thinking. Founded in 1939, the company provides solutions across equities, fixed income, hedge funds and private equity, and had $194 billion in assets under management as of June 30, 2012. For more information, please visit our website at www.nb.com.
Certain statements in this press release, such as those related to the use of leverage constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Fund, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks and uncertainties are the ability to successfully use leverage and the possibility that costs associated with the leverage are higher than expected. As a result, no assurance can be given as to future results, levels of activity, including the level of leverage, performance or achievements, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.
Neuberger Berman Management LLC
SOURCE Neuberger Berman