Tortoise Announces Distribution Amounts and Dates for TYG, NTG, TTP, NDP, TPZ, TEAF
February 12 2020 - 8:00AM
Business Wire
TYG, NTG, TTP, NDP, TPZ, and TEAF declared the following
distributions:
Fund
Ticker
Distribution Amount
Tortoise Energy Infrastructure Corp.
TYG
$0.3950
Tortoise Midstream Energy Fund, Inc.
NTG
$0.2350
Tortoise Pipeline & Energy Fund,
Inc.
TTP
$0.2850
Tortoise Energy Independence Fund,
Inc.
NDP
$0.1000
Tortoise Power and Energy Infrastructure
Fund, Inc.
TPZ
$0.1250
Tortoise Essential Assets Income Term
Fund
TEAF
$0.1085
Following the quarterly comprehensive review of the funds and
their distribution levels, Tortoise is reducing TYG’s first quarter
2020 distribution to $0.3950 and NTG’s first quarter 2020
distribution to $0.2350; all other Tortoise closed-end funds have
maintained distributions.
As the landscape of midstream energy continues to evolve, TYG
and NTG intend to transition to more growth-oriented midstream
companies, thus lowering the yields of the portfolios.
“Midstream energy has undergone a significant evolution with
companies lowering leverage, increasing distribution coverage and
participating in stock buybacks,” said Senior Portfolio Manager
Matt Sallee. “We believe the funds must evolve with the sector and
the change in distribution rates may allow the funds to buyback
shares, reinvest in the portfolios or reduce leverage. The
strategic shift provides us flexibility to invest in what we
believe are the best companies across the midstream energy
universe.”
The Board has authorized a share repurchase of up to $35 million
in TYG and $25 million in NTG, for 2020. The Board also intends to
consider the benefits, as well as the risks, to shareholders of
merging TYG and NTG, although there is no guarantee that a merger
will be pursued.
The TYG, NTG, TTP and NDP quarterly distributions are payable on
Feb. 28, 2020 to stockholders of record on Feb. 21, 2020.
The TPZ and TEAF monthly distributions are payable on March 31,
2020, April 30, 2020 and May 29, 2020 to stockholders of record on
the respective dates of March 24, 2020, April 23, 2020 and May 22,
2020.
For book purposes, the source of distributions for TYG and NTG
are estimated to be 100% return of capital. The source of
distributions for NDP is estimated to be approximately 80-90%
ordinary income, with the remainder as return of capital, and the
source of distributions for TEAF is estimated to be approximately
50-60% ordinary income, with the remainder as return of capital.
For tax purposes, the characterization will not be made until
determination of earnings and profits after year end.
You should not draw any conclusions about TTP’s or TPZ’s
investment performance from the amount of these distributions or
from the terms of TTP’s or TPZ’s distribution policy.
TTP and TPZ estimate that they have distributed more than their
income and net realized capital gains; therefore, a portion of the
distribution may be return of capital. A return of capital may
occur, for example, when some or all of the money that you invested
in TTP and TPZ is paid back to you. A return of capital
distribution does not necessarily reflect TTP’s and TPZ’s
investment performance and should not be confused with “yield” or
“income.”
TTP and TPZ will report the sources for their distributions at
the time of the payment in the applicable Section 19(a) Notice. The
amounts and sources of distributions TTP and TPZ report are only
estimates and are not being provided for tax reporting purposes.
The actual amounts and sources of the amounts for tax reporting
purposes will depend upon TTP’s and TPZ’s investment experience
during the remainder of their fiscal years and may be subject to
changes based on tax regulations. TTP and TPZ will each send you a
Form 1099-DIV for the calendar year that will tell you how to
report these distributions for federal income tax purposes.
About Tortoise
Tortoise invests in essential assets – those assets and services
that are indispensable to the economy and society. With a steady
wins approach and a long-term perspective, Tortoise strives to make
a positive impact on clients and communities. For additional
information, please visit tortoiseadvisors.com
Safe Harbor Statement
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain statements that may include
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of
historical fact, included herein are "forward-looking statements."
Although the funds and Tortoise Capital Advisors believe that the
expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks and uncertainties,
and these expectations may prove to be incorrect. Actual results
could differ materially from those anticipated in these
forward-looking statements as a result of a variety of factors,
including those discussed in the fund’s reports that are filed with
the Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as
of the date of this press release. Other than as required by law,
the funds and Tortoise Capital Advisors do not assume a duty to
update this forward-looking statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20200212005167/en/
Tortoise Pam Kearney, Investor and Public Relations, (866)
362-9331, pkearney@tortoiseadvisors.com
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