Company: SRV
Filing Date: 2025-11-17
Form Type: 424B2
Source: 0001398344-25-021029
Chunk: 51

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-11-17
Form: 424B2
Chunk 51
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 and other forms of
borrowing (“Indebtedness”) or the issuance of preferred shares, in each case to the maximum extent permitted by the Investment
Company Act of 1940, as amended (the “1940 Act”). Under current market conditions, the Fund currently intends to utilize leverage
principally through Indebtedness. The amount of Indebtedness outstanding is expected to vary over time, but will not exceed 331⁄3%
of the Fund’s Managed Assets (i.e., 50% of its net assets attributable to the Fund’s Common Shares), including the
proceeds of such leverage. The costs associated with the issuance and use of leverage will be borne by the holders of the Common Shares.
Leverage is a speculative technique and investors should note that there are special risks and costs associated with leverage. There can
be no assurance that a leveraging strategy will be successful during any period in which it is employed. As of November 30, 2024,
the Fund had outstanding Indebtedness of approximately $48.315 million, which represents 20% of the Fund’s Managed Assets (or approximately
25% of its net assets attributable to the Fund’s Common Shares).

Distributions. The Fund intends to pay
substantially all of its net investment income to Common Shareholders through monthly distributions. In addition, the Fund intends to
distribute any net long-term capital gains to Common Shareholders at least annually. The Fund expects that distributions paid on the Common
Shares will consist primarily of (i) investment company taxable income, which includes, among other things, ordinary income, net short-term
capital gain and income from certain hedging and interest rate transactions, (ii) net capital gain (which is the excess of net long-term
capital gain over net short-term capital loss), and/or (iii) return of capital. Distributions paid by the Fund for any particular month
may be comprised of more or less than the amount of net investment income from that monthly period. As a result, all or a portion of a
distribution may be deemed a return of capital (which is in effect a partial return of the amount a Common Shareholder invested in the
Fund) up to the amount of the Common Shareholder’s tax basis in their Common Shares, which would reduce such tax basis. The Fund’s distributions have historically included, and may in the future include, a significant portion of return of capital. For the fiscal year ended November 30, 202