In a recent move, NXG Cushing® Midstream Energy Fund (NYSE:SRV) has entered into a distribution agreement to offer up to 745,000 common shares on an at-the-market basis.
This action allows the fund to sell shares through Foreside Fund Services, LLC, with a minimum sale price set at the net asset value per share plus commission.
The distribution deal also permits the involvement of sub-placement agents, with UBS Securities LLC already engaged under such an agreement. This initiative is part of an offering made possible by a shelf registration statement previously filed with the SEC.
The offering is designed to provide the fund with a flexible way to raise capital by selling shares at prevailing market prices. The shares will be available through the distributor in transactions that align with the Securities Act of 1933's Rule 415 definition of "at the market" offerings.
The details of this agreement come from the fund's latest 8-K filing with the SEC, which includes the terms of the distribution and sub-placement agent agreements. The offering commenced on Monday, and legal aspects of the common shares have been validated by Skadden, Arps, Slate, Meagher & Flom LLP, as noted in the fund's SEC filing.
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