DALLAS, March 20, 2020 /PRNewswire/ -- The Cushing® Energy Income Fund
(formerly known as the Cushing® Royalty & Income Fund)
(NYSE: SRF) 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 Fund with and into The Cushing® MLP & Infrastructure
Total Return Fund (formerly known as The Cushing® MLP Total Return Fund)
(NYSE: SRV).
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 $3.10 per share,
and the last reported sale price for the Fund's common shares on
the NYSE was $2.10 per share,
representing a discount to net asset value of 32.26%.
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 $0.04 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 total return with an emphasis on
current income. The Fund seeks to provide shareholders with a
tax-efficient vehicle to invest in a portfolio of public and
private securities of energy companies involved in exploring,
developing, producing, transporting, gathering and processing,
storing, refining, distributing, mining or marketing natural gas,
natural gas liquids (including propane), crude oil, refined
products or coal. The Fund will invest no more than 25% of
its total assets in securities of energy master limited
partnerships ("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 "SRF."
The Fund is managed by Cushing® Asset Management, LP
("Cushing"). 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