Company: SRV
Filing Date: 2025-04-10
Form Type: N-2
Source: 0001398344-25-006954
Chunk: 27

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-04-10
Form: N-2
Chunk 27
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 shareholders who do not exercise such rights. However, there can be no assurance that a market for transferable rights will develop or, if such a market does develop, what the price of the transferable rights will be. In a transferrable rights offering, the subscription ratio will not be less than 1-for-3, that is the holders of Common Shares of record on the record date of the rights offering will receive one right for each outstanding Common Share owned on the record date and the rights will entitle their holders to purchase one new Common Share for every three rights held (provided that any Common Shareholder who owns fewer than three Common Shares as of the record date may subscribe for one full Common Share). Assuming the exercise of all rights, such a rights offering would result in an approximately 331⁄3% increase in the Fund’s Common Shares outstanding.

Preferred Shares

The Declaration of Trust
provides that the Board of Trustees may authorize and issue preferred shares with rights as determined by the Board of Trustees, by action
of the Board of Trustees without the approval of the holders of the Common Shares. Holders of Common Shares have no preemptive right to
purchase any preferred shares that might be issued pursuant to such provision. Whenever preferred shares are outstanding, the holders
of Common Shares will not be entitled to receive any distributions from the Fund unless all accrued distributions on preferred shares
have been paid, unless asset coverage (as defined in the 1940 Act) with respect to preferred shares would be at least 200% after giving
effect to the distributions and unless certain other requirements imposed by any rating agencies rating the preferred shares have been
met. If the Board of Trustees determines to proceed with such an offering, the terms of the preferred shares may be the same as, or different
from, the terms described below, subject to applicable law and the Declaration of Trust. The Board of Trustees, without the approval of
the holders of Common Shares, may authorize an offering of preferred shares or may determine not to authorize such an offering and may
fix the terms of the preferred shares to be offered. As of the date of this Prospectus, the Fund has not issued any preferred shares and
has no current expectation to issue preferred shares in the next 12 months.

Distributions. Holders
of preferred shares will be entitled to receive cash distributions, when, as and if authorized by the Board of Trustees and declared by
the Fund, out of funds legally available therefor. The Prospectus Supplement for any offering of preferred