FORT WORTH, Texas--(BUSINESS WIRE)--Southwest Bank and Robert Lansford (collectively, the “Southwest Bank Participants”) announced today that they have delivered by letter to Compass Bank, as trustee for San Juan Basin Royalty Trust (the “Trust”), written requests from the holders of more than 22% of the Trust’s outstanding units to compel Compass Bank to call a special meeting of the Trust’s unitholders (the “Special Meeting”). At the Special Meeting, the Trust’s unitholders will have the opportunity to voice their support for the removal of Compass Bank as trustee of the Trust and the appointment of Southwest Bank as the successor trustee.
Vernon Bryant, Chairman and Chief Executive Officer of Southwest Bank, stated, “We appreciate the strong support we have received from the Trust’s unitholders during the solicitation process. We are extremely pleased that the holders of more than 22% of the Trust’s outstanding units, including many of the Trust’s longest-standing and largest unitholders, have joined in our request to call the Special Meeting well ahead of the September 28th goal date. This show of support sends a clear message that a significant portion of the unitholders believe a change is necessary.”
On September 13, 2016, Glass Lewis & Co., LLC, a leading independent proxy voting advisory firm, recommended that the Trust’s unitholders support the calling of the Special Meeting. In its report, Glass Lewis* noted that:
- “[We] strongly support the right of unitholders to both call special meetings and effect change by written consent.”
- “In general, we believe the common management refrain regarding potential abuse of such rights is largely inadequate to mitigate the fundamental benefits associated with those rights.”
*Permission neither sought nor obtained from Glass Lewis.
“We are gratified that Glass Lewis, a highly-respected independent proxy advisory firm, recognized the importance for unitholders to have the opportunity to convene the Special Meeting and have their voices heard,” said Mr. Bryant. “The unitholders have taken action to demand the opportunity to attend the Special Meeting where they may fully consider and exercise the right given to them to remove and replace a trustee. We urge Compass Bank to promptly schedule the Special Meeting so that the unitholders can have an open forum in which to express their views on this critical matter.”
About Southwest Bank
Proudly serving North Texas for 50 years, Southwest Bank is the largest locally owned, independent bank in Tarrant County. In addition to full-service banking centers in Fort Worth, Dallas, Arlington, Burleson, Grapevine, Mansfield and Saginaw, Southwest Bank maintains mortgage offices in Fort Worth, Dallas and Austin and a royalty trust management office in Dallas. Southwest Bank values its customers and believes in building loyal, lasting relationships through personalized service, honesty and integrity. For more information, visit www.SouthwestBank.com. Member FDIC.
Additional Information Regarding the Solicitation
Southwest Bank and Robert Lansford intend to make a preliminary filing with the Securities and Exchange Commission (“SEC”) of a proxy statement and an accompanying proxy card to be used to solicit votes from unitholders of San Juan Basin Royalty Trust (the “Trust”) for the special meeting. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY THE PROXY STATEMENT AND OTHER PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING THE SPECIAL MEETING AND THE PROXY SOLICITATION. Investors and security holders may obtain free copies of the proxy materials, when they are available, at the SEC’s web site at www.sec.gov.
Each of Southwest Bank and Robert Lansford (the “Southwest Bank Participants”) are participants in the solicitation of proxies in connection with the special meeting of unitholders of the Trust. Information regarding the Southwest Bank Participants and a description of their direct and indirect interests, by security holdings or otherwise, to the extent applicable, is available in the definitive proxy statement soliciting proxies for the calling of the special meeting filed by the Southwest Bank Participants with the SEC on August 29, 2016.