DALLAS, Aug. 28, 2015 /PRNewswire/ -- The Cushing® Royalty & Income Fund
(NYSE: SRF) announces that the Fund's Board of Trustees has
approved (a) a 1-for-5 reverse share split of the Fund's common
shares, (b) distributions for September
2015, as described below, and (c) a change to the name of
the Fund to the Cushing® Energy Income
Fund.
Reverse Share Splits
The Fund anticipates completing a 1-for-5 reverse share split
after the close of trading on the New York Stock Exchange on
September 11, 2015. Trading in
the Fund's common shares on a split adjusted basis is expected to
begin at the market open on September
14, 2015. The Fund's common shares will continue
trading on the NYSE under its existing ticker symbol, but will be
assigned a new CUSIP number.
As a result of the reverse share split, every five of the Fund's
outstanding common shares would be converted into one common share.
A reverse share split would decrease the Fund's common shares
outstanding and potentially increase the market price per common
share by a proportional amount. While the number of outstanding
common shares will decline, neither the Fund's portfolio holdings
nor the total value of shareholders' investments in the Fund will
be affected. After the reverse share split, shareholders' accounts
will reflect proportionally fewer common shares with a higher net
asset value per common share.
The intent of the reverse share split is to potentially increase
the Fund's market price per common share and trading volume,
thereby reducing the per share transaction costs associated with
buying or selling the Fund's common shares in the secondary market.
Each common shareholder would hold the same percentage of the
Fund's outstanding common shares immediately following a the
reverse share split as such shareholder held immediately prior to
the reverse share split, subject to adjustments for fractional
shares resulting from the reverse share split.
No fractional shares will be issued as a result of the reverse
share split, other than in the Fund's dividend reinvestment plan.
Fractional shares that would result from the reverse share split
will be aggregated and sold on the New York Stock Exchange by the
Fund's transfer agent and the proceeds will be distributed pro rata
among shareholders who would otherwise have received fractional
shares in the reverse share split. Shareholders will be receiving
additional information regarding the reverse share split from U.S.
Bancorp Fund Services, LLC, the Fund's transfer agent.
Monthly Distributions
The Fund declared a distribution for September 2015 of $0.039 per common share. Considering the effect
of the reverse share split described above, the distribution amount
will be $0.195 per common
share. The Fund's distribution will be payable on
September 30, 2015 to shareholders of
record on September 17, 2015.
The ex-date for the Fund's distribution is September 15, 2015.
It is anticipated but not certain that approximately 100% of the
Fund's distribution will be treated as a return of capital. The
final determination of such amounts will be made and reported to
shareholders in early 2016, after the end of the calendar year when
each Fund determines its earnings and profits for the year. The
final tax status of the distribution may differ substantially from
this preliminary information.
Name Change
Effective on or about September 14,
2015, the Fund intends to change its name to The
Cushing® Energy Income
Fund. The Fund will continue to seek a high total return with an
emphasis on current income. The Fund's ticker symbol will
remain unchanged. The Fund will continue to seek to achieve
its investment objective by investing, under normal market
conditions, at least 80% of its net assets, plus any borrowings for
investment purposes, in securities of energy-related U.S. royalty
trusts and Canadian royalty trusts (collectively, "Royalty Trusts")
and other income producing investments, consisting of exploration
and production companies (together with Royalty Trusts, "Energy
Trusts"), exploration and production master limited partnerships
("MLPs") and securities of other companies based in North America that are generally engaged in
the same lines of business as those in which Energy Trusts and MLPs
engage ("Other Energy Companies", and together with Energy Trusts
and MLPs, "Energy Companies"). Energy Companies in which the
Fund invests derive at least 50% of their revenues from the
business of exploring, developing, producing, transporting,
gathering and processing, storing, refining, distributing, mining
or marketing natural gas, natural gas liquids (including propane),
crude oil, refined petroleum products or coal. The Fund will
not change its policy of investing at least 80% of its net assets,
plus any borrowings for investment purposes, in Energy Companies
without providing shareholders with at least 60 days prior written
notice.
The Cushing® Royalty
& Income Fund is a non-diversified, closed-end management
investment company. The Fund's common shares are traded on
the New York Stock Exchange under the symbol "SRF."
The Fund is managed by Cushing® Asset Management, LP. No
assurance can be given that the Fund's investment objective will be
achieved.
ABOUT CUSHING® ASSET
MANAGEMENT, LP
Cushing, a subsidiary of Swank
Capital, is an SEC-registered investment adviser headquartered in
Dallas, Texas. Cushing serves as investment adviser to
affiliated funds and managed accounts which invest primarily in
securities of MLPs and other natural resource companies. As of
June 30, 2015, Cushing had approximately $4.4 billion of assets under management in
closed-end funds, mutual funds, privately offered funds and
separately managed accounts.
IMPORTANT INFORMATION
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
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SOURCE Cushing® Asset Management