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NXG NextGen Infrastructure Income Fund Rights Offering Details

On March 26, 2026, the NXG NextGen Infrastructure Income Fund (NYSE: NXG) announced a rights offering, showcasing its ongoing commitment to enhancing shareholder value. The board of trustees has approved the issuance of transferable rights to the Fund's common shareholders. This offering aims to allow existing investors to acquire additional shares at a favorable price, thus contributing to the growth of the Fund's assets.

Understanding the Rights Offering

The rights offering entitles eligible common shareholders to subscribe for new shares at a discounted rate, providing an opportunity for increased investment in the Fund. Shareholders will receive one right for each common share they hold as of the record date, which is anticipated to be April 6, 2026. Importantly, for every three rights held, a shareholder can purchase one new share, or if they own fewer than three shares, they may still acquire one new share.

This structure not only encourages investment but is also designed to benefit the existing shareholders by allowing them to acquire shares below the prevailing market price, thus maximizing their investment potential.

Timeline of the Offering

The rights offering is projected to commence on the record date with an expiration date set for April 30, 2026. Shareholders will be able to exercise their rights during this subscription period. Additionally, the rights are transferable and will be traded on the New York Stock Exchange under the symbol ``NXG RT``.

Pricing Mechanics

The subscription price for the new shares will be determined on the expiration date. It will be based on 95% of the average daily closing prices for the five trading days leading up to the expiration. In a protective measure for shareholders, if this calculated price falls below 92% of the Fund's net asset value on the expiration date, the subscription price will instead be set at 92% of that net asset value.

The Fund aims to ensure that this offering is beneficial, not just for new investors, but especially for existing stakeholders looking to expand their investment in sustainable and traditional infrastructure sectors.

Over-Subscription Opportunity

Record date common shareholders who fully exercise their primary subscription rights will be eligible for an over-subscription privilege. This means they can subscribe for additional shares, subject to applicable allotment limitations. This feature of the offering highlights the Fund’s intention to provide ample opportunities for existing investors to increase their stakes.

Upcoming Distribution Payments

In conjunction with the announcement of the rights offering, the Board has declared a monthly distribution of $0.54 per common share, payable on April 30, 2026. Only shareholders on record as of April 16, 2026, will be eligible to receive this distribution, adding to the appeal of participating in the rights offering.

Investor Considerations

As always, potential investors should weigh the risks, costs, and objectives associated with the Fund before investing. The rights offering will be made via a prospectus supplement, which will provide comprehensive details. Current shareholders will receive their subscription certificates soon after the record date.

The implications of this rights offering may present a significant opportunity for growth within investments focused on the clean and sustainable future that NXG aims to promote through its strategies.

To further understand and engage with the rights offering, interested parties should reach out to their financial advisors or directly consult the Fund’s information agent.

Conclusion

The NXG NextGen Infrastructure Income Fund’s rights offering symbolizes a proactive approach in fostering investor confidence and enhancing shareholder value. With the evolving landscape of infrastructure investments, this is an opportune moment for existing shareholders to evaluate their participation in the offering and the potential benefits it may provide.