Salient Midstream & MLP Fund Announces Successful Completion of its Reorganization
PR Newswire
HOUSTON, Nov. 17, 2014
HOUSTON, Nov. 17, 2014 /PRNewswire/ — Salient Midstream & MLP Fund (the “Fund”) (NYSE: SMM) announced today its successful completion of the approved reorganization (“Reorganization”) involving SMM and Salient MLP & Energy Infrastructure Fund (NYSE: SMF). On November 13, 2014, shareholders of SMM approved the issuance of additional common shares of SMM and shareholders of SMF approved the Reorganization of SMF with and into SMM, pursuant to which shareholders of SMF received SMM common shares and SMM acquired substantially all of the assets and liabilities of SMF. The Reorganization occurred on the basis of relative net asset value of the funds.
The Reorganization of SMM and SMF was completed as of the close of business November 14, 2014, in which 8,222,798 additional shares of SMM were issued to SMF shareholders at the conversion ratio of 1.14 shares of SMM for every share of SMF. The Fund’s net assets after the Reorganization were $508.4 million and the net asset value per share was $28.69.
The Reorganization was intended to qualify as tax-free for federal income tax purposes. This means the shareholders will recognize no gain or loss for federal income tax purposes as a result of the Reorganization.
The Fund, subsequent to the Reorganization, was invested as shown in the pie chart below as of November 14, 2014.
Photo – http://photos.prnewswire.com/prnh/20141117/159084
For illustrative purposes only.
Source: Salient Capital Advisors, LLC, November, 2014.
Also, as of November 14, 2014, subsequent to the Reorganization, the Fund’s 10 largest consolidated holdings were:1
Company |
Sector |
Shares |
Amount |
Percent of |
|||
Enterprise Products Partners, LP* |
MLP |
1,728,894 |
$ 64.4 |
8.5% |
|||
Kinder Morgan Management, LLC |
MLP Affiliate |
597,756 |
$ 58.0 |
7.7% |
|||
The Williams Companies, Inc. |
Midstream Company |
955,880 |
$ 51.7 |
6.9% |
|||
Energy Transfer Equity, LP* |
MLP |
778,420 |
$ 48.0 |
6.4% |
|||
Plains All American Pipeline, LP* |
MLP |
697,720 |
$ 37.0 |
4.9% |
|||
Magellan Midstream Partners, LP* |
MLP |
326,350 |
$ 28.1 |
3.7% |
|||
Targa Resources Corp |
Midstream Company |
207,594 |
$ 24.1 |
3.2% |
|||
NGL Energy Partners, LP* |
MLP |
752,993 |
$ 24.3 |
3.2% |
|||
Macquarie Infrastructure Company |
Other |
337,486 |
$ 23.4 |
3.1% |
|||
Enbridge Energy Management, LLC |
MLP Affiliate |
619,643 |
$ 22.4 |
3.0% |
|||
*Held indirectly through the wholly owned C-Corporation, Salient Midstream & MLP Fund, Inc. |
|||||||
For illustrative purposes only.
Current and future holdings are subject to change and risk.
Source: Salient Capital Advisors, LLC, November 2014.
The Fund’s consolidated unaudited balance sheet, subsequent to the Reorganization, as of November 14, 2014, is shown below:
Salient Midstream & MLP Fund |
|||
Consolidated Balance Sheet |
|||
14-Nov-14 |
|||
(Unaudited) |
|||
Assets |
(in millions) |
||
Investments2 |
$719.1 |
||
Cash and Cash Equivalents |
21.0 |
||
Receivable for Investments Sold |
12.6 |
||
Hedging and Other Assets |
1.1 |
||
Total Assets |
753.8 |
||
Liabilities |
|||
Line of Credit Payable3 |
217.3 |
||
Other Liabilities |
28.1 |
||
Total Liabilities |
245.4 |
||
Net Assets |
$508.4 |
||
The Fund had 17.7 million common shares outstanding as of November 14, 2014 |
1 Fund shares do not represent a deposit or obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Data are based on total market value of Fund investments unless otherwise indicated. The data provided are for informational purposes only and are not intended for trading purposes.
2 Investments include the gross underlying investments within the Salient Midstream & MLP Fund, Inc (C-Corporation) of $211.3 million.
3 The line of credit payable includes the C-Corporation’s $29.8M outstanding line as of November 14, 2014.
Past performance is no guarantee of future results.
Salient Midstream & MLP Fund is a Delaware statutory trust registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended. The Fund’s investment objective is to provide a high level of total return with an emphasis on making quarterly cash distributions to its common shareholders. The Fund seeks to achieve that objective by investing at least 80% of its total assets in securities of MLPs and midstream companies. There can be no assurance that the Fund will achieve its investment objective.
This press release contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual future results to differ significantly from the Fund’s present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; leverage risk; valuation risk; interest rate risk; tax risk; the volume of sales and purchase of shares; the continuation of investment advisory, administration and other service arrangements; and other risks discussed in the Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objective will be attained.
CONTACT:
Chris Moon
JCPR
cmoon@jcprinc.com
973-850-7304
Salient Capital Advisors, LLC
Investor Relations
mlpinfo@salientpartners.com
800-809-0525
Logo – http://photos.prnewswire.com/prnh/20120917/NY75507LOGO
SOURCE Salient Midstream & MLP Fund
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