NXG NextGen Infrastructure Income Fund (NYSE: NXG) Announces At-the-Market Offering Program

Rhea-AI Summary

NXG NextGen Infrastructure Income Fund (NYSE: NXG) has announced the establishment of an at-the-market offering program for its common shares through Foreside Fund Services, The Fund will offer common shares with a par value of $0.001 per share, with proceeds to be invested according to its investment objectives.

The Fund focuses on achieving high total returns with an emphasis on current income by investing at least 80% of its net assets in infrastructure companies across four sectors: energy, industrial, sustainable, and technology/communication infrastructure. The Fund limits its investment in energy master partnerships (MLPs) to 25% of Managed Assets.

Common shareholders will indirectly bear the expenses associated with this offering. The offering will be conducted under the Fund's effective SEC registration statement, with a prospectus supplement dated January 27, 2025.

Positive

• Potential for capital raising to expand investment portfolio
• Diversified infrastructure investment strategy across four sectors
• Clear investment limit of 25% in energy MLPs reducing sector concentration risk

Negative

• Potential dilution of existing shareholders
• Additional expenses from the offering to be borne by common shareholders

News Market Reaction

-1.48%

1 alert

-1.48% News Effect

On the day this news was published, NXG declined 1.48%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Jan. 28, 2025 /PRNewswire/ -- NXG NextGen Infrastructure Income Fund (NYSE: NXG) (the "Fund") announced today that it has established an "at-the-market" offering program (the "Offer"), pursuant to which the Fund may offer and sell common shares of beneficial interest, par value $0.001 per share ("Common Shares") through a distribution agreement with Foreside Fund Services, LLC (the "Distributor"). The sales, if any, of Common Shares made under the program will be made through the Distributor in transactions that are deemed to be "at-the-market offerings" as defined in Rule 415 under the Securities Act of 1933, as amended.

The Fund intends to invest the net proceeds of any sales of Common Shares in the Offer in accordance with its investment objective and policies.

The Common Shares will be offered under the Fund's effective registration statement on file with the Securities and Exchange Commission (the "SEC"). The Fund has filed a prospectus supplement, dated January 27, 2025, with the SEC in connection with the Offer.

The Fund will pay expenses associated with the Offer which will be borne indirectly by the Fund's common shareholders.

The information herein is not complete and is subject to change.

This document is not an offer to sell any securities and is not soliciting an offer to buy any securities in any jurisdiction where the offer or sale is not permitted. This document is not an offering, which can only be made by a prospectus supplement and accompanying prospectus. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The Fund's prospectus supplement and accompanying prospectus contain this and additional information about the Fund and additional information about the Offer, and should be read carefully before investing.

Additional Information About the Fund

The Fund is a closed-end management investment company with an investment objective of seeking a high total return with an emphasis on current income. The Fund seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of equity and debt securities of infrastructure companies, including: (i) energy infrastructure companies, (ii) industrial infrastructure companies, (iii) sustainable infrastructure companies, and (iv) technology and communication infrastructure companies. The Fund will invest no more than 25% of its Managed Assets in securities of energy master limited partnerships ("MLPs") that qualify as publicly traded partnerships under the Internal Revenue Code. The Fund's shares are traded on the New York Stock Exchange under the symbol "NXG." 

About NXG Investment Management

Cushing® Asset Management, LP ("Cushing") is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts. Cushing is doing business as NXG Investment Management providing Next Generation investment strategies to investors seeking long-term growth in companies focused on a clean and sustainable future as well as traditional and transformational infrastructure companies.

IMPORTANT INFORMATION

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the Fund and NXG Investment Management believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, the Fund and Cushing do not assume a duty to update this forward-looking statement.

Contact:
Blake Nelson
NXG Investment Management
214-692-6334
www.nxgim.com

NOT FDIC INSURED             NO BANK GUARANTEE                  MAY LOSE VALUE

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SOURCE NXG Investment Management

FAQ

What is the purpose of NXG's at-the-market offering program announced in January 2025?

The program allows NXG to offer and sell common shares through Foreside Fund Services, , with proceeds to be invested according to the Fund's investment objectives.

How will NXG's at-the-market offering affect existing shareholders?

Existing shareholders will indirectly bear the expenses associated with the offering, and may experience dilution of their shareholdings.

What are the main investment sectors for NXG NextGen Infrastructure Income Fund?

NXG invests in four infrastructure sectors: energy, industrial, sustainable, and technology/communication infrastructure companies.

What is NXG's investment limit in energy master partnerships (MLPs)?

NXG will invest no more than 25% of its Managed Assets in securities of energy MLPs that qualify as publicly traded partnerships.

When did NXG file its prospectus supplement for the at-the-market offering?

NXG filed its prospectus supplement with the SEC on January 27, 2025.