NEW YORK, April 7, 2020 /PRNewswire/ -- Over the last
month, Cohen & Steers MLP Income and Energy Opportunity Fund,
Inc. (NYSE: MIE), the "Fund", has reduced its leverage following a
period of extreme volatility and price depreciation in the market
for master limited partnerships (MLPs) and other midstream energy
companies. On March 30, 2020, the
Fund announced a reduction of its monthly distribution rate and
declared a distribution of $0.015 per
share of common stock. Monthly distributions, announced on
March 30, 2020, are payable on
April 30, May
29 and June 30,
2020.
Reduction in Leverage
The Fund reduced the amount of leverage employed in response to
adverse market conditions for MLPs and other midstream energy
companies, which impacted the value of the Fund's investments and
its ability to comply with certain terms of the asset coverage
requirements of the Investment Company Act of 1940. The Fund
employs a leverage ratio of 26.8% as of April 6, 2020.
Reduction in Distribution Rate
In approving the change in the distribution rate from
$0.06 per share to $0.015 per share, representing a 75% reduction,
the Fund's management and Board of Directors considered the
challenges facing midstream energy companies, as well as other
factors, including the amount of distributable cash flow expected
to be received from the Fund's investments, the reduced leverage
the Fund is expected to employ in the near term, and the expected
cost of leverage and other Fund expenses.
The Fund pays regular monthly cash distributions to common
shareholders at a level rate that may be adjusted from time to
time. The Fund's distribution reflects net investment income and
may also include return of capital. Return of capital includes
distributions paid by a fund in excess of its net investment
income. Such excess is distributed from the fund's assets. Under
federal tax regulations, some or all the return of capital
distributed by a fund may be taxed as ordinary income. The amount
of monthly distributions may vary depending on several factors,
including changes in portfolio and market conditions.
Shareholders should not use the information provided in
preparing their tax returns. Shareholders will receive a Form
1099-DIV for the calendar year indicating how to report Fund
distributions for federal income tax purposes.
Investors should consider the investment objectives, risks,
charges and expenses of the Fund carefully before investing. You
can obtain the Fund's most recent periodic reports, when available,
and other regulatory filings by contacting your financial advisor
or visiting cohenandsteers.com. These reports and other filings can
be found on the Securities and Exchange Commission's EDGAR
Database. You should read these reports and other filings carefully
before investing.
Website: https://www.cohenandsteers.com/
Symbol: (NYSE: CNS)
About Cohen & Steers. Cohen & Steers is a global
investment manager specializing in liquid real assets, including
real estate securities, listed infrastructure and natural resource
equities, as well as preferred securities and other income
solutions. Founded in 1986, the firm is headquartered in
New York City, with offices in
London, Hong Kong and Tokyo.
Forward-Looking Statements
This press release and other statements that Cohen &
Steers may make may contain 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, which reflect the
company's current views with respect to, among other things, its
operations and financial performance. You can identify these
forward-looking statements by the use of words such as "outlook,"
"believes," "expects," "potential," "continues," "may," "will,"
"should," "seeks," "approximately," "predicts," "intends," "plans,"
"estimates," "anticipates," or the negative versions of these words
or other comparable words. Such forward-looking statements are
subject to various risks and uncertainties.
Accordingly, there are or will be important factors that
could cause actual outcomes or results to differ materially from
those indicated in these statements. The company undertakes no
obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise.
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SOURCE Cohen & Steers