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Jan. 9, 2014 /PRNewswire/ -- Permian Basin Royalty Trust (NYSE: PBT) ("Permian" or the "Trust") announced today that Bank of America, N.A., also known as U.S. Trust, Bank of America Private Wealth Management ("Trustee" or "Bank of America"), will be resigning as Trustee of the Trust subject to the conditions set forth below. Following the distribution of requests for proposal to and discussions with a number of potential candidates, Bank of America intends to nominate Southwest Bank, an independent state bank chartered under the laws of the
State of Texas and headquartered in
Fort Worth, Texas ("Southwest Bank"), as successor trustee at a special meeting of unitholders of the Trust to be called for the purpose of approving a successor trustee of the Trust (the "Special Meeting"). All unitholders of record as of the record date for the Special Meeting will receive a notice of Special Meeting and proxy materials detailing the matters to be voted on at the Special Meeting as well as the time and location of the Special Meeting.
Bank of America's resignation is conditioned on the satisfaction or waiver by Bank of America of the following:
The appointment of Southwest Bank as trustee of Sabine Royalty Trust (another royalty trust for which Bank of America currently serves as trustee).
The appointment of Southwest Bank or another successor trustee as trustee of the Trust and five other royalty trusts for which Bank of America currently serves as trustee and as agent under a disbursing arrangement for which Bank of America currently serves as agent.
The accuracy of certain representations and warranties and performance of certain agreements made by Southwest Bank in an agreement between Bank of America and Southwest Bank.
No governmental injunction, order or other action that would prohibit Southwest Bank's appointment, Bank of America's resignation or the other actions described above.
The effective date of Bank of America's resignation shall be
May 30, 2014, assuming all of the conditions described above have been satisfied or waived by Bank of America as of such date. If the conditions described above have not been satisfied or waived by Bank of America as of such date, the resignation shall be effective
August 29, 2014, assuming all of the conditions described above have been satisfied or waived by Bank of America as of such date. If the resignation is not effective as of such later effective date, Bank of America will notify unitholders of the new effective date.
"Southwest Bank's senior management has expertise in handling royalty trusts and, as the largest independent commercial bank in
Tarrant County, we are excited to have the opportunity to expand the Bank's Wealth Management services into this line of business," said
Vernon Bryant, Chairman and Chief Executive Officer of Southwest Bank.
Any statements in this press release about plans for the Trust, the expected timing of the completion of the proposed resignation of the Trustee or appointment of a successor trustee, and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "may," "intends" and similar expressions, other than historical facts, constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors or risks that could cause our actual results to differ materially from the results we anticipate include, but are not limited to the inability of the Trustee to resign or Southwest Bank to assume duties as successor trustee due to the failure to obtain necessary unitholder or court approval or the failure to satisfy other conditions set forth above.