Cushing Royalty & Income Fund conducts $207.5 million IPO of shares

By Toni Weeks

San Diego, Feb. 24 - The Cushing Royalty & Income Fund has conducted a $207.5 million initial public offering of shares, according to a joint press release between Cushing MLP Asset Management, LP and its parent company, Swank Capital, LLC.

The newly organized closed-end fund sold 8.3 million common shares at $25 apiece for proceeds of $207.5 million via an underwriting syndicate led by Stifel Nicolaus Weisel, RBC Capital Markets and Oppenheimer & Co. The fund has also granted the underwriters an option to purchase within 45 days of the offering 1,245,000 more shares at the same price for additional proceeds of $31,125,000.

Shares of the fund will begin trading Friday on the New York Stock Exchange under the symbol "SRF."

The fund seeks a high total return with an emphasis on current income, aiming to provide shareholders with a tax-efficient vehicle to invest in a portfolio of energy-related U.S. royalty trusts, E&P Master Limited Partnerships, Canadian royalty trusts, exploration and production companies and other energy assets.

The fund will be managed by Dallas-based Cushing MLP Asset Management.

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