DALLAS, March 20, 2020 /PRNewswire/ -- The Cushing® MLP & Infrastructure
Total Return Fund (formerly known as The Cushing® MLP Total Return Fund)
(NYSE: SRV) (the "Fund") announced today the decision of the Fund's
Board of Trustees (the "Board") to revise the timing of the Fund's
distributions for the months of April and May, 2020. In
addition, the Board reaffirmed its continued support for the
proposed merger of The Cushing® Energy Income Fund
(formerly known as the Cushing® Royalty & Income Fund)
(NYSE: SRF) with and into the Fund.
Energy Market Volatility
Crude oil prices have dropped in dramatic fashion over the past two
weeks, resulting from both (a) investor concerns over the
anticipated short term demand disruption (over supply) due to the
impact of the coronavirus (COVID-19) on the global economy and (b)
the dispute that surfaced between Saudi
Arabia (OPEC) and Russia
regarding crude oil production cuts. These two factors
combined to create a "perfect storm" across the energy supply
chain: a decline in global demand coupled with an increase in
global supply. The selling pressure has been widespread and
dramatic, impacting the midstream energy infrastructure companies
in which the Fund invests.
As a result of this volatility, as of March 19, 2020, the net asset value of the Fund's
common shares was $4.07 per share,
and the last reported sale price for the Fund's common shares on
the NYSE was $2.85 per share,
representing a discount to net asset value of 29.97%.
Fund Distributions
Since [2015], the Fund has paid monthly distributions.
However, during this period of market uncertainty, the Fund's Board
has elected to defer the planned distributions for April and May,
2020, in order to preserve the Fund's available cash and provide
the Fund's portfolio management team with flexibility to prudently
manage the Fund's investment portfolio during this time of
unprecedented market volatility. It is currently anticipated
that the Fund's monthly distribution schedule will resume in June,
2020. The June distribution, if and when declared by the
Board, would be a replacement of the monthly distributions that
would otherwise have been made in April and May.
There is no change to the Fund's previously declared March
distribution, which will be payable on March
31, 2020, to shareholders of record on March 16, 2020, in the amount of $0.0903 per common share.
Fund Merger
As previously announced, a joint special meeting of shareholders of
SRV and SRF (the "Special Meeting") will be held on Friday, May 1, 2020, to consider the proposed
merger of the Funds. The Board has reviewed the reasons for the
merger, including the anticipated benefits to shareholders of each
Fund. The Board reaffirmed its continued support for the
proposed merger and its recommendation that shareholders of the
Fund vote "FOR" the merger.
The Funds currently intend to hold the Special Meeting on the
date scheduled and in person. However, the Funds are actively
monitoring the coronavirus (COVID-19) situation; the Funds are
sensitive to the public health and travel concerns shareholders may
have and the protocols that federal, state, and local governments
and health officials may impose or recommend. In the event the
Funds determine it is not possible or advisable to hold the Special
Meeting in person, the Funds will publicly announce alternative
arrangements for the meeting as promptly as practicable before the
Special Meeting, which may include holding the Special Meeting
solely by means of remote communication (i.e., a
virtual-only Special Meeting). Please monitor the Funds' website
for updated information. If you are planning to attend the Special
Meeting, please check the website prior to the meeting date.
For more information regarding the proposed merger, please refer
to the Proxy Statement/Prospectus, which can be found at
https://www.proxy-direct.com/cus-31148. If you have any proxy
related questions, contact your financial advisor or call
Georgeson, the Funds' proxy solicitor, at (877) 255-0134.
Representatives are available Monday through Friday, 9:00 a.m. to 11:00 p.m. Eastern time.
Fund Information
The Fund is a non-diversified, closed-end management investment
company with an investment objective of seeking a high after-tax
total return from a combination of capital appreciation and current
income. The Fund seeks 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 a portfolio
of energy infrastructure master limited partnerships ("MLPs") and
MLP-related investments. The Fund will invest no more than
25% of its total assets in securities of MLPs that qualify as
publicly traded partnerships under the Internal Revenue Code. The
Fund is traded on the New York Stock Exchange under the symbol
"SRV."
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 providing active management
in markets where inefficiencies exist. As of December 31, 2019, Cushing had approximately $1.8 billion of assets under management in
closed-end funds, mutual funds, privately offered funds and
separately managed accounts.
Contact:
Geoff Crumrine
Cushing® Asset
Management, LP
214-692-6334
www.cushingasset.com
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.
This press release contains certain statements that may include
"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. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although the Funds and Cushing
believe that the expectations reflected in these forward-looking
statements are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
Actual results could differ materially from those anticipated in
these forward-looking statements as a result of a variety of
factors, including those discussed in the company's reports that
are filed with the Securities and Exchange Commission. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Other than as
required by law, the Funds and Cushing do not assume a duty to update this
forward-looking statement.
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SOURCE Cushing Asset Management, LP and Swank Capital, LLC