Edward A. Mule’s Silver Point Capital reported its recent insider purchases in Torch Energy Royalty Trust (TRU) on November 21st. The Form 4 filing shows Silver Point Capital sold 345 thousand shares (units of beneficial interest) in TRU on November 17 and 18. After that Silver Point Capital remains 6.16 million shares in its position, giving 72% activist stake. Silver Point Capital did not change its TRU position during the third quarter, and reported 5.93 million shares in its most recent 13F filing. TRU has lost 27% year to date, and is trading at $2.52 right now.
Silver Point Capital, L.P. is a distressed debt and credit-focused private investment firm. The firm was founded by Edward Mulé and Robert O’Shea and is based in Greenwich, Connecticut. Silver Point invests in highly complex situations that generally require deep analytical resources, demand timely execution and reward expertise, all of which create natural barriers to entry.
Torch Energy Royalty Trust is a grantor trust. According to Yahoo! Finance, the trust “holds net profits interests, to receive payments from the working interest owners. Its working interest owners include Torch Royalty Company, Torch E&P Company, Samson Lone Star Limited Partnership, and Constellation Energy Partners LLC. The trust is entitled to receive 95% of the net proceeds attributable to oil and natural gas produced and sold from wells on the underlying properties, including Chalkley Field in Louisiana; the Robinsons Bend Field in the Black Warrior Basin in Alabama; Cotton Valley Fields in Texas; and Austin Chalk Fields in central Texas. Torch Energy Royalty Trust was founded in 1993 and is based in Wilmington, Delaware.”