Neuberger Berman Closed-End Intermediate Municipal Funds Issue Variable Rate Municipal Term Preferred Shares; Redeem Auction Market Preferred Shares

NEW YORK, July 2, 2014 /PRNewswire/ -- 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 successfully issued variable rate municipal term preferred shares ("VMTPs").

As previously announced, the proceeds from the issuance of VMTPs are being used to redeem all of the Funds' outstanding auction market preferred shares ("AMPS") at the full liquidation preference of $25,000 per share, plus accumulated distributions.  Both NBW and NBH have completed the redemption of 100% of their outstanding AMPS.  NBO has delivered the proceeds to its auction agent to be held for the benefit of the AMPS holders. The redemptions of NBO's Series A and Series B AMPS are scheduled to occur on July 7^th and July 3^rd, respectively.  The VMTP issuance and AMPS redemption will not result in a substantial change in the amount of leverage employed by each Fund.

Each Fund's VMTPs, which were issued via private placement, have been assigned a rating of 'AA' by Fitch Ratings.  The VMTPs issued by the Funds are preferred shares with a mandatory term redemption date in five (5) years that pay distributions that are set to a fixed spread against a short-term municipal index, 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 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 institutions and advisors worldwide. 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

Certain statements in this press release, such as those related to the redemption of AMPS, the methodology for and timing of such redemption, and the use of leverage, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Funds, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks and uncertainties are the ability of the Funds to redeem AMPS, the ability to successfully use leverage and the possibility that costs associated with the leverage are higher than expected. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the Funds nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

Contact:
Neuberger Berman Management LLC
Investor Information
(877) 461-1899

SOURCE Neuberger Berman