Company: SRV
Filing Date: 2025-10-22
Form Type: N-2/A
Source: 0001398344-25-019582
Chunk: 27

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-10-22
Form: N-2/A
Chunk 27
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 the extent permissible under applicable law, the Fund may determine to offer
any unsubscribed offered securities directly to persons other than shareholders, to or through agents, underwriters or dealers or through
a combination of such methods, as set forth in the applicable Prospectus Supplement

Transferable Rights Offering

Subscription rights issued
by the Fund may be transferrable. The terms of a transferrable rights offering will fully protect shareholders’ preemptive rights,
if any, and will not discriminate among shareholders (except for the possible de minimis effect of not issuing fractional rights). The
distribution to Common Shareholders of transferable rights, which may themselves have intrinsic value, also will afford non-participating
Common Shareholders the potential of receiving cash payment upon the sale of the rights, receipt of which may be viewed as partial compensation
for any dilution of their interests that may occur as a result of the rights offering. In a transferrable rights offering, Fund management
will use its best efforts to ensure an adequate trading market in the rights for use by 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 194