Neuberger Berman Closed-End Intermediate Municipal Funds Announce Plan for Leverage Refinancing and Redemption of All Auction Market Preferred Shares
Neuberger Berman Management LLC. Investor Information, (877) 461-1899
NEW YORK, NY, June 25, 2014 The Boards of Directors of Neuberger Berman California Intermediate Municipal Fund Inc. (NYSE MKT: NBW), Neuberger Berman Intermediate Municipal Fund Inc. (NYSE MKT: NBH) and Neuberger Berman New York Intermediate Municipal Fund Inc. (NYSE MKT: NBO) (collectively, the “Funds”) have approved the Funds’ plan to refinance all of their leverage through the issuance of Variable Rate Municipal Term Preferred Shares (“VMTPs”), the proceeds of which will be used to redeem 100% of the Funds’ outstanding Auction Market Preferred Shares (“AMPS”).
The AMPS will be redeemed at the full liquidation preference of $25,000 per share, plus accumulated distributions owed. The Funds have filed with the Securities and Exchange Commission, notices of their intention to redeem all outstanding AMPS. Subject to the satisfaction of certain requirements, including the successful issuance and sale of the VMTPs, the Funds expect to redeem their AMPS in accordance with the schedule below:
|NBW||Series A||64123C200||July 1, 2014|
|NBW||Series B||64123C309||July 1, 2014|
|NBH||Series A||64124P200||July 2, 2014|
|NBH||Series B||64124P309||July 2, 2014|
|NBO||Series A||64124K201||July 7, 2014|
|NBO||Series B||64124K300||July 3, 2014|
The Funds expect to issue VMTPs via private placements. VMTPs are preferred shares with a mandatory-term redemption date in five (5) years that pay distributions that are set to a fixed spread against the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. VMTPs are senior in priority to the Funds’ outstanding common stock as to payments of distributions. The Funds anticipate that its total overall leverage from preferred stock will remain substantially the same after the VMTP Share issuance and redemption of its AMPS.
The Funds have not registered any VMTPs under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. Unless so registered, no VMTPs may be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
About Neuberger Berman
Neuberger Berman is a 75-year-old private, independent, employee-controlled investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for global institutions, advisors and individuals. With offices in 16 countries, Neuberger Berman’s team is approximately 2,000 professionals and the company was named by Pensions & Investments as a 2013 Best Place to Work in Money Management. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $247 billion in client assets (as of March 31, 2014). For more information, please visit our website at www.nb.com.