Neuberger High Yield Strategies Fund Announces Increase in Leverage

Rhea-AI Summary

High Yield Strategies Fund (NYSE American: NHS) announced Board approval to increase leverage through two actions: a $25 million boost to its committed revolving debt financing and issuance of $10 million in additional Series D Mandatory Redeemable Preferred Shares, both subject to documentation and customary closing conditions.

After completion, the Fund expects up to $135 million in revolving debt capacity and $50 million of Series D Preferred outstanding, aligning total available leverage more closely with its current asset level following a recent transferable rights offering.

Positive

• Revolving Loan Facility commitment increased by $25 million to $135 million
• Additional $10 million in Series D Preferred Shares to reach $50 million outstanding
• Total available leverage increased to better match current asset level post-rights offering

Negative

• Overall leverage capacity increases materially, raising the Fund’s exposure to borrowed capital
• Series D Preferred Shares outstanding rise to $50 million, increasing senior capital claims ahead of common shareholders

News Explained

The Board-approved increases are not yet completed: the Fund expects to finalize the facility amendment and issue the preferred shares within the next week, so the stated $135 million debt capacity and $50 million preferred balance remain post-completion terms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

NEW YORK, Aug. 27, 2026 /PRNewswire/ -- High Yield Strategies Fund Inc. (NYSE American: NHS) (the "Fund") announced today that its Board of Directors has approved a $25 million increase in the committed debt financing available under its revolving debt financing facility ("Revolving Loan Facility") with a major unaffiliated financial institution, as well as the issuance of $10 million in additional Mandatory Redeemable Preferred Shares, Series D ("Series D Preferred Shares"), in each case subject to completion of documentation and customary closing conditions. The Fund anticipates finalizing the amendment to Revolving Loan Facility and issuing the Series D Preferred Shares within the next week. Following the amendment to the Revolving Loan Facility and the issuance of additional Series D Preferred Shares, the Fund will have access to committed debt financing of up to $135 million under the Revolving Loan Facility and will have $50 million in Series D Preferred Shares outstanding. 

The amended leverage arrangements would increase the total amount of leverage available to the Fund to bring it more in line with the Fund's current asset level following completion of the Fund's transferable rights offering earlier this year. 

About Neuberger

Neuberger is an employee-owned, private, independent investment manager founded in 1939 with approximately 3,000 employees across 26 countries. The firm manages $613 billion of equities, fixed income, private markets, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger's investment philosophy is founded on active management, fundamental research and engaged ownership. The firm is proud to be recognized for its commitment to its two constituents, clients and employees. Again this past year, we were named Best Asset Manager for Institutional Investors in the US (Crisil Coalition Greenwich) and the #1 Best Place to Work in Money Management (Pensions & Investments, firms with more than 1,000 employees). Neuberger has no corporate parent or unaffiliated external shareholders. Visit www.nb.com for more information, including www.nb.com/disclosure-global-communications for information on awards. Data as of June 30, 2026.

Contact:

Neuberger Berman Investment Advisers LLC
Investor Information
(877) 461-1899

View original content to download multimedia:https://www.prnewswire.com/news-releases/neuberger-high-yield-strategies-fund-announces-increase-in-leverage-302861343.html

SOURCE Neuberger Berman

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What leverage changes did High Yield Strategies Fund (NYSE American: NHS) announce on August 27, 2026?

High Yield Strategies Fund announced higher leverage through more debt capacity and preferred shares. According to the Fund, it plans a $25 million increase in its Revolving Loan Facility and $10 million of additional Series D Mandatory Redeemable Preferred Shares, subject to closing conditions.

How much total revolving debt financing will NHS have after the new leverage changes?

After the changes, the Fund expects up to $135 million in revolving debt capacity. According to the Fund, this reflects a $25 million increase in its committed Revolving Loan Facility with a major unaffiliated financial institution, pending completion of documentation and customary closing conditions.

What is the new total of Series D Preferred Shares for High Yield Strategies Fund (NHS)?

The Fund expects to have $50 million of Series D Preferred Shares outstanding. According to the Fund, this results from issuing an additional $10 million of Mandatory Redeemable Preferred Shares, Series D, once documentation is completed and normal closing conditions are satisfied.

When will the new leverage arrangements for High Yield Strategies Fund (NHS) take effect?

The Fund anticipates finalizing the leverage changes within about a week of the announcement. According to the Fund, both the Revolving Loan Facility amendment and the Series D Preferred issuance remain subject to completion of documentation and customary closing conditions before becoming effective.

Why is High Yield Strategies Fund (NHS) increasing its total leverage capacity?

The Fund is increasing leverage to bring it more in line with current asset levels. According to the Fund, the amended arrangements align total available leverage with its asset base following completion of a transferable rights offering conducted earlier in the year.

What is the total leverage available to High Yield Strategies Fund (NHS) after these changes?

The Fund states that the amended arrangements will increase the total amount of leverage available. According to the Fund, this higher leverage capacity is designed to better reflect its current asset level after the earlier transferable rights offering, though an exact combined total is not separately specified.