EQ Fund Solutions' In-Depth Analysis and Flawless Execution Leads to a Merger of Two MLPs in Record Time

• Two master limited partnerships (MLPs) were merged in record time from mailing, to meeting, to merger completion.
  
  
• EQ conducted multiple shareholder identification reports leading up to the record date to track any buying by activist investors and put together multiple vote projection models.
  
  
• EQ worked closely with the fund company’s management team to ensure the deadline for the merger was met.

EQ Fund Solutions was engaged to assist a fund company that was looking to merge two of their master limited partnerships (MLPs) into one. In order to complete the transaction, shareholders of both MLPs needed to be apprised of the plan and reorganization between their two funds. Through public filings and EQ’s proprietary Ownership Intelligence services, it was discovered that there was significant ownership of shares by investors who are known to cause proxy contests, which caused concerns of activism against the merger. This meant that the company would need the support of these investors to continue with their plans as intended.

Pulling off this transaction would then be challenging. In addition, an extra layer of difficulty came into play, as the preliminary filings were tied up in the SEC with many comments, well beyond the usual 30-40 days on an N-14 reorganization. This delay put the company’s goal of soliciting shareholder approval, holding the meeting and merging the funds before the funds’ year end in jeopardy.

As a result of the delay at the SEC, EQ also launched a very proactive outbound calling and mailing campaign once they were finally cleared to print and mail. EQ wanted to ensure that the funds’ year end deadline would be met.

Securing the required votes had mostly to do with the arrangement made between the company and activist investor, and being able to mobilize the EQ call center and mail facility to quickly solicit votes from tens of thousands of shareholders.
 

Through EQ’s in-depth analysis, shareholder identification, vote projection capabilities and flawless execution of the solution plans, both funds approved the mergers in enough time for the funds’ transfer agent, also EQ, to merge the books and records before the fund’s year end.