Company: SRV
Filing Date: 2025-02-10
Form Type: N-CSR
Source: 0001398344-25-002262
Chunk: 25

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-02-10
Form: N-CSR
Chunk 25
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4                                   |     | 4,016,705 |

On May 17, 2024, the Fund entered into a Distribution Agreement (the “Distribution Agreement”) with Foreside Fund Services, LLC (the “Distributor”), pursuant to which the Fund may offer and sell up to 175,000 common shares, from time to time, through the Distributor, in transactions that are deemed to be “at-the-market” as defined in Rule 415 under the Securities Act of 1933. The minimum price on any day at which common shares may be sold will not be less than the then current net asset value per common share plus any commissions to be paid to the Distributor. For the fiscal year 2024, the Fund issued 93,843 shares, generating gross proceeds of $4 million under the Distribution Agreement.

In December 2023, the Fund issued 728,317 shares in connection with a transferable rights offering, raising gross proceeds of approximately $23 million, and in November 2024, the Fund issued 1,004,176 common shares in connection with a transferable rights offering and raised gross proceeds of approximately $41 million.

9. Borrowing Facilities

The Fund maintains a margin account arrangement with Scotiabank™. The interest rate charged on margin borrowing is tied to the cost of funds for Scotiabank™, approximating SOFR plus 0.75%. Proceeds from the margin account arrangement are used to execute the Fund’s investment objective.

The average principal balance and interest rate for the period during which the credit facilities were utilized during the fiscal year ended November 30, 2024 was $47,367,000 and 6.05%, respectively. As of November 30, 2024, the principal balance outstanding was $48,315,000 and accrued interest expense was $0.

10. Subsequent Events

Subsequent to November 30, 2024, the Fund declared monthly distributions to common shareholders in the amounts of $0.4500 per share, payable on December 31, 2024 and January 31, 2025, to shareholders of record on December 16, 2024 and January 16, 2025, respectively. On December 31, 2024, the Fund paid a special distribution of $0.31477 to shareholders of record on December 27, 2024 to meet its 2024 distribution requirements as a regulated investment company for U.S. federal income tax purposes.