NXG Cushing® Midstream Energy Fund (NYSE: SRV) Announces Terms of Rights Offering, Announces December Monthly Distribution and Provides Update on Capital Gains

Core Viewpoint - NXG Cushing Midstream Energy Fund has approved the issuance of transferable rights to its common shareholders, allowing them to subscribe for additional common shares at a discount to market price, aimed at increasing the fund's assets for investment opportunities [1][2][3] Offer Details - The record date for the offer is set for November 17, 2025, with shareholders receiving one right for each common share held, allowing them to purchase one new common share for every three rights [2] - The subscription period will begin on the record date and is expected to end on December 11, 2025, with rights being transferable and tradable on the NYSE under the symbol "SRV RT" [3] - The subscription price will be determined on the expiration date, set at 95% of the average sales price of the common shares on the NYSE for the five trading days leading up to the expiration date, with a minimum price of 92.5% of the fund's net asset value [4] Over-Subscription Privilege - Record date common shareholders who fully exercise their primary subscription rights will have the opportunity to subscribe for any additional common shares not purchased in the primary subscription, subject to limitations [5] Monthly Distribution - The fund has declared a monthly distribution of $0.45 per common share for December 2025, with the distribution being 100% sourced from investment income [8][10] - A previous monthly distribution of $0.45 per share was declared for November 2025, with a record date of November 17, 2025 [10] Capital Gains Update - As of October 31, 2025, the fund estimates a special distribution of long-term capital gains between $10 million to $15 million, equating to approximately 5% to 8% of the fund's net asset value, which would translate to about $2.00 to $3.50 per share based on current outstanding shares [11] - If the offer is fully subscribed, the total common shares outstanding could increase to approximately 6.2 million, potentially reducing the per-share distribution to about $1.50 to $2.50 [11] Fund Overview - NXG Cushing Midstream Energy Fund is a non-diversified, closed-end management investment company focused on achieving high after-tax total returns through capital appreciation and current income, primarily investing in midstream energy assets [15] - The fund utilizes leverage as part of its investment strategy, and its common shares are traded on the NYSE under the symbol "SRV" [15]