NXG NextGen Infrastructure Income Fund announces rights offering for up to 1.41 million shares

Published 23/07/2025, 23:38
NXG NextGen Infrastructure Income Fund announces rights offering for up to 1.41 million shares

NXG NextGen Infrastructure Income Fund (NYSE:NXG), currently offering an impressive 13.72% dividend yield with a market capitalization of $172.3 million, announced Monday that it has entered into a dealer manager agreement with UBS Securities LLC and Cushing Asset Management, LP, doing business as NXG Investment Management, to facilitate a rights offering to its shareholders. The announcement was disclosed in a press release statement and detailed in a filing with the Securities and Exchange Commission.

InvestingPro data reveals that NXG has maintained dividend payments for 14 consecutive years, making this rights offering particularly noteworthy for income-focused investors.

According to the filing, shareholders of record at the close of business on Monday received one transferable right for each common share held. These rights allow holders to subscribe for up to 1,414,904 new common shares of beneficial interest, with a par value of $0.001 per share. Shareholders can purchase one new common share for every three rights held. Those who fully exercise their rights may also subscribe, subject to limitations and allotment, for additional shares that are not otherwise taken up in the offering. Shareholders owning fewer than three shares as of the record date are entitled to subscribe for one full share. The offering comes as NXG has demonstrated strong performance, with a year-to-date return of 11.56%.

The rights offering is being conducted under a prospectus supplement dated Monday and the accompanying prospectus dated July 9, 2025, both of which form part of the fund’s effective shelf registration statement on Form N-2.

In addition to the dealer manager agreement, NXG NextGen Infrastructure Income Fund entered into a subscription agent agreement with Equiniti Trust Company, LLC and an information agent agreement with EQ Fund Solutions, LLC, both dated Monday, to assist in administering the offer.

The offer commenced Monday, as stated in the SEC filing. A legal opinion from Skadden, Arps, Slate, Meagher & Flom LLP regarding the validity of the offer was also included as an exhibit in the filing.

All information in this article is based on statements provided in the press release and the related SEC filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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