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
(in millions)
|
Percent of
Consolidated
Gross Assets
|
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
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SOURCE Salient Midstream & MLP Fund