SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
(Rule 14d-100)
Tender Offer Statement Pursuant to Section 14(d)(1) or 13(e)(1)
of the Securities Exchange Act of 1934
NEUBERGER BERMAN REAL ESTATE INCOME FUND INC.
(Name of Subject Company (Issuer))
LOLA BROWN TRUST NO. 1B
ERNEST HOREJSI TRUST NO. 1B
(Name of Filing Persons (Offerors))
COMMON STOCK, PAR VALUE $0.0001 PER SHARE
(Title of Class of Securities)
64126D106
(CUSIP Number of Class of Securities)
Stephen C. Miller, Esq.
Krassa & Miller, LLC
1680 38th Street, Suite 800
Boulder, Colorado 80301
(303) 442-2156
Copy to:
Thomas R. Stephens, Esq.
Bartlit Beck Herman Palenchar & Scott
1899 Wynkoop Street, 8th Floor
Denver, Colorado 80202
(303) 592-3100
(Name, Address and Telephone Numbers of Person Authorized
to Receive Notices and Communications on Behalf of Filing Persons)
Calculation of Filing Fee
Transaction Valuation* Amount of Filing Fee**
____________________________ ___________________________
$36,299,250 $4,599.12
- ------------------------
* Estimated for purposes of calculating the amount of filing fee only.
Transaction value derived by multiplying 1,825,000 shares of the subject
company (number of shares sought) by $19.89 (the purchase price per share
offered by the Lola Brown Trust No. 1B and the Ernest Horejsi Trust No.
1B).
** The amount of the filing fee, calculated in accordance with Rule 0-11 under
the Securities Exchange Act of 1934, as amended, equals $126.70 per million
of the aggregate amount of the cash offered by the Lola Brown Trust No. 1B
and the Ernest Horejsi Trust No. 1B.
|_| Check the box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
Amount Previously Paid: $ Filing Party:
Form or Registration Number: Date Filed:
|_| Check the box if the filing relates solely to preliminary communications
made before the commencement of a tender offer. Check the appropriate boxes
below to designate any transactions to which the statement relates:
|X| third-party tender offer subject to Rule 14d-1.
|_| issuer tender offer subject to Rule 13e-4.
|_| going private transaction subject to Rule 13e-3.
|X| amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results
of the tender offer: |_|
CUSIP No. 64126D106
- --------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Lola Brown Trust No. 1B
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds (See Instructions) WC OO
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e)
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization South Dakota
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power 463,200
Shares Bene-
ficially Owned 8. Shared Voting Power
by Each
Reporting 9. Sole Dispositive Power 463,200
Person With
10. Shared Dispositive Power
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person 463,200
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
13. Percent of Class Reported by Amount in Row (11) 10.12%
- --------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions) OO
CUSIP No. 64126D106
- --------------------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
Ernest Horejsi Trust No. 1B
- --------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- --------------------------------------------------------------------------------
3. SEC Use Only
- --------------------------------------------------------------------------------
4. Source of Funds (See Instructions) WC OO
- --------------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d)
or 2(e)
- --------------------------------------------------------------------------------
6. Citizenship or Place of Organization South Dakota
- --------------------------------------------------------------------------------
Number of 7. Sole Voting Power 4,900
Shares Bene-
ficially Owned 8. Shared Voting Power
by Each
Reporting 9. Sole Dispositive Power 4,900
Person With
10. Shared Dispositive Power
- --------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person 4,900
- --------------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
13. Percent of Class Reported by Amount in Row (11) 0.11%
- --------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions) OO
SCHEDULE TO
This Tender Offer Statement on Schedule TO ("Schedule TO") relates to the
offer by the Lola Brown Trust No. 1B, an irrevocable grantor trust domiciled and
administered in South Dakota (the "Lola Trust"), and the Ernest Horejsi Trust
No. 1B, an irrevocable grantor trust domiciled and administered in South Dakota
(the "Ernest Trust" and, together with the Lola Trust, the "Trusts"), to
purchase up to 1,825,000 issued and outstanding shares of common stock, par
value $0.0001 per share (the "shares"), of Neuberger Berman Real Estate Income
Fund Inc., a Maryland corporation ("NRL"), at a price of $19.89 per share, net
to the seller in cash (subject to applicable withholding of United States
federal, state and local taxes), without interest, upon the terms and subject to
the conditions set forth in the Offer to Purchase (the "Offer to Purchase")
dated September 10, 2004, and in the related Letter of Transmittal, copies of
which are attached as Exhibits (a)(1) and (a)(2) hereto, respectively. This
Schedule TO is being filed on behalf of the Trusts.
The information set forth in the Offer to Purchase, including Schedules I
and II thereto, is hereby incorporated by reference in answer to Items 1 through
11 of this Schedule TO, and is supplemented by the information specifically
provided herein. Defined terms used but not otherwise defined herein have the
meanings given to them in the Offer to Purchase.
Item 3. Identity and Background of Filing Persons.
None of the Trusts or, to the best knowledge of the Trusts, Badlands, Mr.
Horesji, Ms. Ciciora, Mr. Dunlap or any of the persons listed on Schedule I to
the Offer to Purchase have been convicted in a criminal proceeding in the past
five years (excluding traffic violations or similar misdemeanors). During the
past five years, none of the Trusts or, to the best knowledge of the Trusts,
Badlands, Mr. Horesji, Ms. Ciciora, Mr. Dunlap or any of the persons listed on
Schedule I to the Offer to Purchase was a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction as a result of which
such person was or is subject to a judgment decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws of finding any violation with respect to such laws. Mr.
Horejsi, Ms. Ciciora, Mr. Dunlap and each person listed on Schedule I to the
Offer to Purchase are all citizens of the United States.
Item 5. Past Contacts, Transactions, Negotiations and Agreements.
Except as described in the Offer to Purchase, during the past two years
there have not been any negotiations, transactions or material contacts between
the Trusts, or, to the best knowledge of the Trusts, Badlands, Mr. Horesji, Ms.
Ciciora, Mr. Dunlap or any of the persons listed on Schedule I to the Offer to
Purchase, on the one hand, and NRL or any of its directors, executive officers
or affiliates, on the other hand, that are required to be disclosed pursuant to
this item.
Item 8. Interest in Securities of the Subject Company.
Except as described in the Offer to Purchase, none of the Trusts or, to the
best knowledge of the Trusts, Badlands, Mr. Horesji, Ms. Ciciora, Mr. Dunlap or
any of the persons listed on Schedule I to the Offer to Purchase, or any
associate or majority-owned subsidiary of the Trusts or Badlands, Mr. Horesji,
Ms. Ciciora, Mr. Dunlap or any of the persons listed on Schedule I to the Offer
to Purchase, beneficially owns any equity security of NRL; and except as
described in the Offer to Purchase, none of the Trusts or, to the best knowledge
of the Trusts, Badlands, Mr. Horesji, Ms. Ciciora, Mr. Dunlap or any of the
persons listed on Schedule I to the Offer to Purchase, or any associate or
majority-owned subsidiary of the Trusts or Badlands, Mr. Horesji, Ms. Ciciora,
Mr. Dunlap or any of the persons listed on Schedule I to the Offer to Purchase,
has effected any transaction in any equity security of NRL during the past 60
days.
Item 10. Financial Statements.
Financial information regarding the Trusts is set forth on the pages
numbered F-1 to F-6 of this Schedule TO. Item 12. Exhibits.
(a) (1) Offer to Purchase, dated September 10, 2004
(2) Letter of Transmittal.
(3) Notice of Guaranteed Delivery.
(4) Letter to Brokers, Dealers, Commercial Banks, Trust Companies and
Other Nominees.
(5) Letter to Clients for Use by Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees.
(6) Guidelines for Certification of Taxpayer Identification Number on
Substitute Form W-9
(7) Summary Advertisement, as published in the Wall Street Journal on
September 10, 2004.
(b) Cash Management Account Agreement between the Lola Trust and Merrill Lynch,
Pierce, Fenner & Smith Incorporated and the Ernest Trust and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, incorporated in this Schedule TO by
reference to the Schedule 13D filed by the Trusts and Stuart Horejsi on
September 2, 2004.
(d) Not Applicable
(g) Not Applicable
(h) Not Applicable
Item 13. Information Required by Schedule 13E-3.
Not applicable.
LOLA BROWN TRUST NO. 1B
Financial Statements
Profit and Loss Statement (unaudited) (dollars)
Seven months ended July 31,
------------- --- ----------------
2004 2003
Income
Capital Gains 46,630,279 $-26,052
Dividend Income 7,421 5,582
Interest Income 536,068 509,100
Other 42,004 12,962
------------- ----------------
Total Income 47,215,772 501,592
Expense
Interest Expense 484,208 937,206
Tax 3,040,306 1,601,025
Other 87,848 89,685
------------- ----------------
Total Expense 3,612,362 2,627,916
------------- ----------------
Net Income 43,603,410 -2,126,324
============= ================
Balance Sheet (unaudited) (dollars)
as of July 31,
------------- --- ----------------------------------------
2004 2003
------------- ----------------------------------------
ASSETS
Current Assets
Cash 48,020,955 57,287,439
Other Current Assets 7,937,106 10,727,974
------------- ----------------------------------------
Total Current Assets 55,958,061 68,015,413
Fixed Assets 178,781 177,733
Other Assets 440,221,183 406,782,518
------------- ----------------------------------------
TOTAL ASSETS 496,358,025 474,975,664
============= ========================================
LIABILITIES & EQUITY
Liabilities
Current Liabilities 43,230,035 112,342,026
Total Liabilities 43,230,035 112,342,026
------------- ----------------------------------------
Equity 453,127,991 362,633,638
------------- ----------------------------------------
TOTAL LIABILITIES & EQUITY 496,358,025 474,975,664
============= ========================================
F-1
LOLA BROWN TRUST NO. 1B
Financial Statements
Profit and Loss Statement (unaudited) (dollars)
Year ended December 31,
---------------- --- --------------
2003 2002
---------------- --------------
Income
Capital Gains 4,932,718 256,793
Dividend Income 7,072,025 7,653,586
Interest Income 916,980 1,490,834
Other 7,721 27,880
---------------- --------------
Total Income 12,929,445 9,429,093
Expense
Interest Expense 1,605,920 2,149,285
Tax 1,602,652 200,594
Other 115,958 767,693
---------------- --------------
Total Expense 3,324,530 3,117,572
---------------- --------------
Net Income 9,604,914 6,311,521
================ ==============
Balance Sheet (unaudited)
(dollars)
as of December 31,
---------------- -- ---------------
2003 2002
---------------- ---------------
ASSETS
Current Assets
Cash 50,116,230 44,928,668
Other Current Assets 9,227,025 11,626,200
---------------- ---------------
Total Current Assets 59,343,255 56,554,868
Fixed Assets 178,781 408,827
Other Assets 469,038,295 400,774,133
---------------- ---------------
TOTAL ASSETS 528,560,332 457,737,829
================ ===============
LIABILITIES & EQUITY
Liabilities
Current Liabilities 90,963,079 94,780,094
---------------- ---------------
Total Liabilities 90,963,079 94,780,094
Equity 437,597,253 362,957,735
---------------- ---------------
TOTAL LIABILITIES & EQUITY 528,560,332 457,737,829
================ ===============
F-2
LOLA BROWN TRUST NO. 1B
Financial Statements
Ratio of Earnings to Fixed Charges
(unaudited) (dollars other than ratio)
As of:
July 31, 2004 December 31, 2003 December 31, 2002
Net Income 43,603,410.20 9,604,914.27 6,311,520.66
Interest expense 484,207.99 1,605,920.24 2,149,285.21
Earnings to fixed charges 91.05 6.98 3.94
F-3
ERNEST HOREJSI TRUST NO. 1B
Financial Statements
Profit and Loss Statement (unaudited)
Seven months ended July 31,
----------------- -----------------
2004 2003
----------------- -----------------
Income
Capital Gains 36,536 895
Dividend Income 645 162,250
Interest Income 4 198
Other 0 -574,724
----------------- -----------------
Total Income 37,186 -411,382
Expense
Interest Expense 682,345 601,116
Tax 534,554 653,368
Other 63,053 76,022
----------------- -----------------
Total Expense 1,279,951 1,330,506
----------------- -----------------
Net Ordinary Income -1,242,765 -1,741,888
----------------- -----------------
Net Income -1,242,765 -1,741,888
================= =================
Balance Sheet (unaudited)
(dollar)
as of July 31,
------------------ -- -----------------
2004 2003
------------------ -----------------
ASSETS
Current Assets
Cash -39,005,025 -38,521,952
Other Current Assets 175 30
------------------ -----------------
Total Current Assets -39,004,850 -38,521,922
Fixed Assets 10,223,030 10,028,876
Other Assets 148,701,639 120,094,715
------------------ -----------------
TOTAL ASSETS 119,919,819 91,601,669
================== =================
LIABILITIES & EQUITY
Liabilities
Current Liabilities 21,934,425 23,636,628
Long Term Liabilities 2,113,421 2,241,436
------------------ -----------------
Total Liabilities 24,047,846 25,878,064
Equity 95,871,973 65,723,604
------------------ -----------------
TOTAL LIABILITIES & EQUITY 119,919,819 91,601,669
================== =================
F-4
ERNEST HOREJSI TRUST NO. 1B
Financial Statements
Profit and Loss Statement (unaudited) (dollars)
Year ended December 31,
------------------ --- ------------------
2003 2002
------------------ ------------------
Income
Capital Gains 4,714,617 5,186,675
Dividend Income 504,553 670,811
Interest Income 199 186
Other 779,858 -34,887
------------------ ------------------
Total Income 5,999,226 5,822,785
Expense
Interest Expense 1,127,255 1,383,124
Tax 758,086 454,867
Other 126,441 516,226
------------------ ------------------
Total Expense 2,011,782 2,354,217
------------------ ------------------
Net Ordinary Income 3,987,444 3,468,568
------------------ ------------------
Net Income 3,987,444 3,468,568
================== ==================
Balance Sheet (unaudited) (dollars)
As of December 31,
------------------- --- ------------------
2003 2002
------------------- ------------------
ASSETS
Current Assets
Cash -39,249,378 -22,401,106
Other Current Assets 2,239 0
------------------- ------------------
Total Current Assets -39,247,139 -22,401,106
Fixed Assets 10,033,716 10,041,936
Other Assets 141,444,635 106,008,608
------------------- ------------------
TOTAL ASSETS 112,231,212 93,649,437
=================== ==================
LIABILITIES & EQUITY
Liabilities
Current Liabilities 18,087,236 29,092,241
Long Term Liabilities 2,231,436 2,359,451
------------------- ------------------
Total Liabilities 20,318,672 31,451,692
Equity 91,912,540 62,197,745
------------------- ------------------
TOTAL LIABILITIES & EQUITY 112,231,212 93,649,437
=================== ==================
F-5
ERNEST HOREJSI TRUST NO. 1B
Financial Statements
Ratio of Earnings to Fixed Charges
(unaudited) (dollars except ratio)
As of:
July 31, 2004 December 31, 2003 December 31, 2002
Net Income -1,242,765.40 3,987,444.22 3,468,568.29
Interest expense 682,344.57 1,127,254.74 1,383,123.99
Earnings to fixed charges -0.82 4.54 3.51
F-6
SIGNATURES
After due inquiry and to the best of my knowledge and belief, each of the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: September 10, 2004
Lola Brown Trust No. 1B
Ernest Horejsi Trust No. 1B
/s/ Stephen C. Miller
By: _______________________________
Name: Steven C. Miller
Title: Vice President of Badlands Trust
Company, trustee of the Lola Brown
Trust No. 1B and the Ernest Horejsi
Trust No. 1B
EXHIBIT INDEX
Exhibit Description
(a) (1) Offer to Purchase, dated September 10, 2004
(2) Letter of Transmittal
(3) Notice of Guaranteed Delivery
(4) Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees.
(5) Letter to Clients for Use by Brokers, Dealers, Commercial
Banks, Trust Companies and Other Nominees.
(6) Guidelines for Certification of Taxpayer Identification
Number on Substitute Form W-9.
(7) Summary Advertisement, as published in the Wall Street
Journal on September 10, 2004.
(b) Cash Management Account Agreement between the Lola Trust and
Merrill Lynch, Pierce, Fenner & Smith Incorporated and the Ernest
Trust and Merrill Lynch, Pierce, Fenner & Smith Incorporated,
incorporated in this Schedule TO by reference to the Schedule 13D
filed by the Trusts and Stewart Horejsi on September 2, 2004.
(d) Not Applicable
(g) Not Applicable
(h) Not Applicable