- NXG NextGen Infrastructure Income Fund (NXG, Financial) announces a rights offering, allowing shareholders to buy additional shares at a discounted rate.
- Shareholders will receive one Right per Common Share held on July 21, 2025, with the option to purchase one new share for every three Rights.
- The August distribution record date has been changed to August 4, 2025, with a $0.54 per share distribution.
NXG NextGen Infrastructure Income Fund (NXG) is launching a rights offering aimed at existing shareholders, allowing them to acquire additional common shares at a discounted price. Each shareholder will receive one Right for each Common Share held as of the record date, July 21, 2025. These Rights enable shareholders to purchase one new Common Share for every three Rights they hold.
The subscription price for the offering will be set at 95% of the average closing price over the last five trading days before the offer expires on August 13, 2025. If this calculated price is less than 90% of the net asset value (NAV), the price will be fixed at 90% of NAV, ensuring shareholders receive a favorable deal.
In addition, NXG has altered the record date for its August distributions. Shareholders on record as of August 4, 2025, will receive a monthly distribution of $0.54 per share, payable on August 29, 2025.
This rights offering represents a strategic effort to bolster the fund's capital, as recommended by NXG's investment adviser, NXG Investment Management. The firm believes that the additional capital will allow the fund to seize existing and emerging investment opportunities.
It is important to note that while the offering provides an opportunity for shareholders to strengthen their stakes at a discount, expenses related to the offering will be indirectly borne by the shareholders. Also, newly issued shares post-August 4, 2025, will not be eligible for the August distribution.
