The Cushing MLP Total Return Fund announced a public offering of 250,000 shares of common stock at $7.56 per share. The fun expects to receive $1.9 million in net proceeds from the offering, and will use the funds to invest in adherence with its objectives.
The Cushing MLP Total Return Fund is selling the shares at a 20% premium to the net asset value of the fund on December 23, 2009. The total shares outstanding of the Cushing MLP Total Return Fund will increase to 12,536,691 after the offering closes in January 2010.
The Cushing MLP Total Return Fund is a closed end fund that invests with the objective of a high after tax return through capital appreciation and current income. The fund achieves this objective by investing at least 80% of its assets in the shares of Master Limited Partnerships (MLP).
MLP’s are typically organized as limited partnerships or limited liability companies that are involved in natural resource based activities including mining, oil, and natural gas exploration and development, or transportation, storage and marketing of these resources.
The fund is managed by Swank Energy Income Advisors, LP, an Investment Advisor registered with the Securities and Exchange Commission (SEC) and headquartered in Dallas, Texas.