Deal Details
Follow-On Offering
Summary
Baird served as a bookrunner on this offering
About
The Cushing Royalty & Income Fund (the “Fund”) (NYSE: SRF) recently completed a follow-on offering of 2,400,000 common shares, generating gross proceeds of $48.6 million. The Fund intends to invest the proceeds from the offering in accordance with its investment objective and policies.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 energy-related U.S. royalty trusts, exploration and production master limited partnerships and Canadian royalty trusts and exploration and production companies and other energy assets. The Fund is managed by Cushing Asset Management, LP (“Cushing”), an investment adviser to affiliated funds and managed accounts which invest primarily in securities of MLPs and other natural resource companies. As of May 31, 2014, Cushing had approximately $4.0 billion of assets under management in closed-end funds, mutual funds, privately offered funds and separately managed accounts. The Fund is headquartered in Dallas, Texas.
INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES ASSOCIATED WITH A FUND CAREFULLY BEFORE INVESTING. THIS AND OTHER INFORMATION IS AVAILABLE IN THE PROSPECTUS OR SUMMARY PROSPECTUS, WHICH CAN BE OBTAINED FROM YOUR FINANCIAL ADVISOR. THE PROSPECTUS OR SUMMARY PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.
SHARES OF CLOSED-END INVESTMENT COMPANIES FREQUENTLY TRADE AT A DISCOUNT FROM THEIR NET ASSET VALUE, WHICH MAY INCREASE INVESTORS' RISK OF LOSS. INVESTMENT IN THE FUND INVOLVES SUBSTANTIAL RISK ARISING FROM THE FUND'S INVESTMENTS IN THE SECURITIES OF ENERGY COMPANIES, ITS CONCENTRATION IN THE ENERGY SECTOR AND ITS USE OF LEVERAGE. INVESTMENTS IN SECURITIES OF MLPS INVOLVE RISKS THAT DIFFER FROM INVESTMENTS IN COMMON STOCK, INCLUDING AMONG OTHERS RISKS RELATED TO THE LIMITED CONTROL AND LIMITED RIGHTS TO VOTE ON MATTERS AFFECTING MLPS, POTENTIAL CONFLICTS OF INTEREST RISK, CASH FLOW RISKS, DILUTION RISKS AND TRADING RISKS.
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- Date
- June 2014
- Company
- Cushing Royalty & Income Fund
- Transaction
- M&A
- Sectors
- Energy
- Target Geography
- North America
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