NEW YORK, July 06, 2020 (GLOBE NEWSWIRE) -- Center Coast Brookfield MLP & Energy Infrastructure Fund (NYSE: CEN) (the “Fund”) today announced that the previously disclosed 10-for-1 reverse share split was executed today prior to the open of trading on the New York Stock Exchange (“NYSE”). The Fund’s common shares will begin trading on a split-adjusted basis under its ticker symbol, but with a new CUSIP number, as reflected below.
|Symbol||Fund||Reverse Share Split||New CUSIP|
|CEN||Center Coast Brookfield MLP & Energy Infrastructure Fund||10-for-1||151461 209|
As a result of the reverse share split, every ten (10) of the Fund's outstanding common shares were converted into one (1) common share. The reverse share split decreased the Fund’s common shares outstanding and will potentially increase the market price per common share by a proportional amount. While the number of outstanding common shares declined, neither the Fund’s portfolio holdings nor the total value of shareholders’ investments in the Fund were affected as a result of the reverse share split. As a result of the reverse share split, shareholders' accounts 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.
No fractional shares were issued as a result of the reverse share split, other than in the Fund’s dividend reinvestment plan. Any fractional shares resulting from the reverse share split were aggregated and will be 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 were automatically reflected in the Fund’s records and no action is needed to be taken by shareholders.
Please contact American Stock Transfer & Trust Company, the Fund’s transfer agent and exchange agent for the reverse share split, for further information toll-free at (866) 668-6549.
Certain statements made in this news release that are not historical facts are referred to as "forward-looking statements" under the U.S. federal securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. 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 results to differ from the historical experience of Brookfield Public Securities Group LLC (“PSG”) and the Fund managed by PSG and its present expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. PSG and the Fund managed by PSG undertake no responsibility to update publicly or revise any forward-looking statements.
PSG is an SEC-registered investment adviser that represents the Public Securities platform of Brookfield Asset Management Inc., providing global listed real assets strategies including real estate equities, infrastructure equities, energy infrastructure equities, multi-strategy real asset solutions and real asset debt. With over $15 billion of assets under management as of May 31, 2020, PSG manages separate accounts, registered funds and opportunistic strategies for financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and individual investors. PSG is a wholly owned subsidiary of Brookfield Asset Management Inc., a leading global alternative asset manager with over $515 billion of assets under management as of March 31, 2020. For more information, go to www.brookfield.com.
Center Coast Brookfield MLP & Energy Infrastructure Fund is managed by PSG. The Fund uses its website as a channel of distribution of material information about the Fund. Financial and other material information regarding the Fund is routinely posted on and accessible at www.brookfield.com.
Center Coast Brookfield MLP & Energy Infrastructure Fund
Investing involves risk; principal loss is possible. Past performance is not a guarantee of future results.
An outbreak of infectious respiratory illness caused by a novel coronavirus known as “COVID-19” was first detected in China in December 2019 and has now been detected globally. COVID-19 and concern about its spread contributed to severe market volatility. Markets generally and the energy sector specifically, including master limited partnerships (“MLPs”) and energy infrastructure companies in which the Fund invests, have also been adversely impacted by reduced demand for oil and other energy commodities as a result of the slowdown in economic activity resulting from the spread of COVID-19 and by price competition among key oil-producing countries. These developments have and may continue to adversely impact the Fund’s net asset value and the market price of the Fund's common shares.
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 U.S. federal income tax purposes and, as a result, unlike most investment companies, will be subject to corporate income tax to the extent the Fund recognizes taxable income.
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.
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