NXG NextGen Infrastructure Income Fund (NYSE:NXG) disclosed today that it has entered into multiple agreements related to a rights offering, which was initiated on Monday, June 20, 2024. The offering allows existing shareholders to purchase additional common shares of the fund.
The Dallas-based investment fund, which operates under Delaware jurisdiction, has signed a dealer manager agreement with Cushing® Asset Management, LP and UBS Securities LLC. This agreement is in connection with the issuance of transferable rights to the fund's shareholders as of the record date, June 20, 2024. Shareholders will receive one right for every common share they own on the record date. These rights will enable shareholders to buy one new common share for every three rights they hold.
Shareholders who exercise all their rights are also entitled to subscribe for additional shares that may result from unexercised rights, within certain limitations and subject to allotment. Shareholders with less than three shares as of the record date will be eligible to subscribe for one full common share.
The rights offering is part of a prospectus supplement dated June 20, 2024, and an accompanying prospectus dated June 10, 2024, both of which are included in the fund’s effective shelf registration statement previously filed with the SEC.
In addition to the dealer manager agreement, NXG NextGen has also entered into a subscription agent agreement with Equiniti Trust Company, LLC and an information agent agreement with EQ Fund Solutions, LLC to facilitate the offering.
InvestingPro Insights
In light of NXG NextGen Infrastructure Income Fund's recent rights offering, investors may find the following InvestingPro Insights particularly informative. The fund holds more cash than debt on its balance sheet, which could be indicative of financial stability and an ability to fund growth or return capital to shareholders. Additionally, NXG is trading at a low P/E ratio relative to near-term earnings growth, suggesting that its shares might be undervalued based on expected earnings performance.
From a returns perspective, NXG has shown a high return over the last year, with a 1 Year Price Total Return of 28.25%. This performance, coupled with a substantial 6 Month Price Total Return of 25.22%, reflects a strong recent uptrend in the fund's market valuation.
For those considering a deeper dive into NXG NextGen's financials and future prospects, there are 13 additional InvestingPro Tips available on InvestingPro. And for those looking to subscribe, don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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