NXG NextGen announces at-the-market offering of common shares

NXG NextGen Infrastructure Income Fund (NYSE: NXG), a Delaware-incorporated investment fund with a market capitalization of $123.43 million and an impressive dividend yield of 13.66%, has entered into a distribution agreement with Foreside Fund Services, LLC on Monday, allowing for the at-the-market offering of up to 200,000 common shares.

According to InvestingPro, the fund has demonstrated strong performance with a 59.71% return over the past year. The offering, which commenced on Monday, is being conducted under the Fund’s effective shelf registration statement, with a prospectus supplement dated January 27, 2025, and an accompanying prospectus dated June 10, 2024.

The distribution agreement specifies that the common shares will be sold at a minimum price that exceeds the current net asset value per share, inclusive of the commission to be paid to the distributor. UBS Securities LLC has been engaged as a sub-placement agent under a separate agreement. The sales will take place in transactions defined as "at the market" in accordance with Rule 415 under the Securities Act of 1933, as amended.

Skadden, Arps, Slate, Meagher & Flom LLP has provided a legal opinion regarding the legality of the common shares being offered. This move by NXG NextGen Infrastructure Income Fund represents a strategic step to raise capital through the equity markets, leveraging its existing shelf registration.

Investors and market watchers will be observing the performance of this offering, as it may reflect the market’s appetite for investment in infrastructure-focused funds. The Fund’s decision to sell additional shares comes amid strong momentum, with a 30.84% price return over the past six months.

InvestingPro subscribers can access additional insights, including exclusive financial health scores and detailed dividend analysis, with the fund maintaining consistent dividend payments for 14 consecutive years. The Fund’s decision to sell additional shares is based on the terms outlined in the agreements with Foreside Fund Services, LLC and UBS Securities LLC.

This report is based on a press release statement and the information contained within the 8-K filing with the Securities and Exchange Commission.

"In other recent news, NXG NextGen Infrastructure Income Fund announced significant changes to its Board of Trustees.

This follows the retirement of Ronald P. Trout, a long-standing Trustee, and the appointment of John Musgrave, the current CEO and President of NXG NextGen, as a Trustee. The company also revealed that John H. Alban will now serve as an Independent (LON:IOG) Trustee, a change resulting from his lack of material business or professional relationship with the Fund’s investment adviser over the past two fiscal years.

These changes are part of the Fund’s ongoing governance and oversight adjustments. Furthermore, the Fund has maintained dividend payments for 14 consecutive years, demonstrating strong corporate governance practices. The Fund boasts an impressive 12.8% dividend yield.

These recent developments come alongside an impressive one-year return of 78% for the Dallas, Texas-based Fund, which operates within the financial sector, focusing on infrastructure income. With a market capitalization of $131.3 million, NXG NextGen continues to show remarkable performance, according to InvestingPro’s analysis."

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