Record Date | Ex-Date | Payable Date | Amount per Share | |
In addition, the Fund announced today that its
June Quarterly Distribution
As noted in prior press releases and on investor calls, the dislocation in the midstream energy space as a result of COVID-19 and the
In recent years, the midstream market has undergone several positive changes, and we continue to remain focused on investing in companies run by high-caliber management teams that we believe possess the highest quality assets and most durable operating cash flows. PSG and the Fund’s
Based on current estimates, it is anticipated that a portion of the distributions paid in calendar 2020 will be treated for
Please contact your financial advisor with any questions. Distributions may include net investment income, capital gains and/or return of capital. Any portion of the Fund’s distributions that is a return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” The tax status of distributions will be determined at the end of the taxable year.
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1
Reverse Share Split
As a result of the reverse share split, every ten (10) of the Fund's outstanding common shares will be converted into one (1) common share. A reverse share split will decrease the Fund’s common shares outstanding and potentially increase the market price per common share by a proportional amount. While the number of outstanding common shares will decline, neither the Fund's portfolio holdings nor the total value of shareholders' investments in the Fund will be affected. After the reverse share split, shareholders' accounts will reflect proportionally fewer common shares with a higher net asset value per common share.
The intent of the reverse share split is to potentially increase the Fund's market price per common share and trading volume, thereby reducing the per share transaction costs associated with buying or selling the Fund's common shares in the secondary market. Each common shareholder will hold the same percentage of the Fund's outstanding common shares immediately following the reverse share split as such shareholder held immediately prior to the reverse share split, subject to adjustments for fractional shares resulting from the reverse share split.
No fractional shares will be issued as a result of the reverse share split, other than in the Fund’s dividend reinvestment plan. Fractional shares that result from the reverse share split will be aggregated and sold on the NYSE by the Fund's transfer agent and the proceeds will be distributed pro rata among shareholders who would otherwise have received fractional shares in the reverse share split. The changes resulting from the reverse share split will be automatically reflected in the Fund’s records and no action will need to be taken by shareholders.
Please contact
Forward-Looking Statements
Certain statements made in this news release that are not historical facts are referred to as "forward-looking statements" under the
PSG is an
COMPANY CONTACT
(855) 777-8001
publicsecurities.enquiries@brookfield.com
Investing involves risk; principal loss is possible. Past performance is not a guarantee of future results.
Risks
An outbreak of infectious respiratory illness caused by a novel coronavirus known as “COVID-19” was first detected in
The Fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase price fluctuation. The value of commodity-linked investments such as the MLPs and energy infrastructure companies (including midstream MLPs and energy infrastructure companies) in which the Fund invests are subject to risks specific to the industry they serve, such as fluctuations in commodity prices, reduced volumes of available natural gas or other energy commodities, slowdowns in new construction and acquisitions, a sustained reduced demand for crude oil, natural gas and refined petroleum products, depletion of the natural gas reserves or other commodities, changes in the macroeconomic or regulatory environment, environmental hazards, rising interest rates and threats of attack by terrorists on energy assets, each of which could affect the Fund’s profitability.
MLPs are subject to significant regulation and may be adversely affected by changes in the regulatory environment including the risk that an MLP could lose its tax status as a partnership. If an MLP was obligated to pay federal income tax on its income at the corporate tax rate, the amount of cash available for distribution would be reduced and such distributions received by the Fund would be taxed under federal income tax laws applicable to corporate dividends received (as dividend income, return of capital, or capital gain).
In addition, investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Such companies may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling.
The Fund is a non-diversified, closed-end management investment company. As a result, the Fund’s returns may fluctuate to a greater extent than those of a diversified investment company. Shares of closed-end management investment companies, such as the Fund, frequently trade at a discount to their net asset value, which may increase investors’ risk of loss. The Fund is not a complete investment program and you may lose money investing in the Fund.
Because of the Fund’s concentration in MLP investments, the Fund is not eligible to be treated as a “regulated investment company” under the Internal Revenue Code of 1986, as amended. Instead, the Fund will be treated as a regular corporation, or “C” corporation, for
An investment in MLP units involves risks that differ from a similar investment in equity securities, such as common stock, of a corporation. Holders of MLP units have the rights typically afforded to limited partners in a limited partnership. As compared to common shareholders of a corporation, holders of MLP units have more limited control and limited rights to vote on matters affecting the partnership. There are certain tax risks associated with an investment in MLP units. Additionally, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of an MLP.
The Fund currently seeks to enhance the level of its current distributions by utilizing financial leverage through borrowing, including loans from financial institutions, or the issuance of commercial paper or other forms of debt, through the issuance of senior securities such as preferred shares, through reverse repurchase agreements, dollar rolls or similar transactions or through a combination of the foregoing. Financial leverage is a speculative technique and investors should note that there are special risks and costs associated with financial leverage.
Source:
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