Tortoise today announced completing leverage reductions for TYG,
NTG and TTP, which results in each company being in compliance with
all applicable 1940 Act leverage tests, as well as the covenants on
its debt agreements and the terms of its preferred stock. Leverage
has been reduced by utilizing cash raised through trading activity
in a manner that minimized prepayment premiums in order to maximize
shareholder value. Cash remains on company balance sheets that
could be used to further reduce leverage. At this point, all
Tortoise closed-end funds are in compliance with the 1940 Act
leverage tests.
Asset Coverage Ratios and Leverage
Set forth below is an update on each company’s asset coverage
ratios and leverage as well as an unaudited balance sheet at April
14, 2020.
Tortoise Energy Infrastructure Corp. (NYSE: TYG) Leverage
summary:
Total leverage outstanding
$129,100,000
Leverage as % of total assets
31.3%
1940 Act Coverage Ratios:
Ratio as of
3/31/2020
4/14/2020
Debt (300%)
212%
352%
Debt & Preferred (200%)
137%
264%
TYG is required to have an asset coverage of 300% with respect
to senior securities (debt) and 225% with respect to preferred
stock (including debt & preferred) at the time of a common
stock distribution declaration and as of the end of each month.
Unaudited balance sheet
(in
Millions)
Investments
$312.1
Cash and Cash Equivalents
55.1
Deferred Tax Asset
41.2
Other Assets
3.4
Total Assets
411.8
Senior Notes
96.8
Preferred Stock
32.3
Total Leverage
129.1
Other Liabilities
2.2
Current Tax Liability
69.1
Net Assets
$
211.4
Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) Leverage
summary:
Total leverage outstanding
$50,900,000
Leverage as % of total assets
27.4%
1940 Act Coverage Ratios:
Ratio as of
3/31/2020
4/14/2020
Debt (300%)
208%
374%
Debt & Preferred (200%)
122%
281%
NTG is required to have asset coverage of at least 300% with
respect to senior securities (debt) and 225% with respect to
preferred stock (including debt & preferred) at the time of a
common stock distribution declaration and as of the end of each
month.
Unaudited balance sheet
(in
Millions)
Investments
$170.8
Cash and Cash Equivalents
13.1
Other Assets
1.6
Total Assets
185.5
Senior Notes
38.2
Preferred Stock
12.7
Total Leverage
50.9
Other Liabilities
1.0
Current Tax Liability
41.5
Net Assets
$92.1
Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP)
Leverage summary:
Total leverage outstanding
$24,500,000
Leverage as % of total assets
37.4%
1940 Act Coverage Ratios:
Ratio as of
3/31/2020
4/14/2020
Debt (300%)
278%
354%
Debt & Preferred (200%)
177%
266%
TTP is required to have an asset coverage of 300% with respect
to senior securities (debt) and 225% with respect to preferred
stock (including debt & preferred) at the time of a common
stock distribution declaration and as of the end of each month.
Unaudited balance sheet
(in
Millions)
Investments
$56.6
Cash and Cash Equivalents
8.3
Other Assets
0.6
Total Assets
65.5
Senior Notes
18.4
Preferred Stock
6.1
Total Leverage
24.5
Other Liabilities
0.4
Net Assets
$40.6
About Tortoise Energy Infrastructure Corp.
Tortoise Energy Infrastructure Corp. (NYSE: TYG) owns a
portfolio of master limited partnership investments in the energy
infrastructure sector. Tortoise Energy Infrastructure Corp.’s
objective is to provide its stockholders a high level of total
return with an emphasis on current distributions.
About Tortoise Midstream Energy Fund, Inc.
Tortoise Midstream Energy Fund, Inc. (NYSE: NTG) owns a
portfolio of midstream energy entities that own and operate a
network of pipeline and energy-related logistical infrastructure
assets with an emphasis on those that transport, gather, process
and store natural gas and natural gas liquids (NGLs). Tortoise
Midstream Energy Fund, Inc.’s objective is to provide its
stockholders a high level of total return with an emphasis on
current distributions.
About Tortoise Pipeline & Energy Fund, Inc.
Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP) is a
non-diversified, closed-end management investment company that
seeks to obtain a high level of total return with an emphasis on
current distributions. TTP invests primarily in equity securities
of pipeline companies that transport natural gas, natural gas
liquids (NGLs), crude oil and refined products and, to a lesser
extent, in other energy infrastructure companies.
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
Tortoise Capital Advisors, L.L.C. is the Adviser to Tortoise
Energy Infrastructure Corp., Tortoise Midstream Energy Fund, Inc.
and Tortoise Pipeline & Energy Fund, Inc.
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200414006143/en/
For more information contact Maggie Zastrow at (913) 981-1020 or
info@tortoiseadvisors.com
Tortoise Pipeline and En... (NYSE:TTP)
Historical Stock Chart
From May 2024 to Jun 2024
Tortoise Pipeline and En... (NYSE:TTP)
Historical Stock Chart
From Jun 2023 to Jun 2024