Tortoise today announced that the Board has authorized the
reinstatement of distributions and a share repurchase program for
certain closed-end funds.
Tortoise Energy Infrastructure Corp. (NYSE: TYG) and Tortoise
Midstream Energy Fund, Inc. (NYSE: NTG) declared a quarterly
distribution of $0.30 and $0.31, respectively, payable on July 31,
2020 to shareholders of record as of July 24, 2020. The Board has
decided to pay these distributions for TYG and NTG in July, and
expect to return to the regular fiscal quarter distribution
schedule in November.
Additionally, we are implementing a share repurchase program
effective through December 31, 2020, for TYG, NTG and Tortoise
Pipeline & Energy Fund, Inc. (NYSE: TTP). Under the share
repurchase program, TYG, NTG and TTP, intend to purchase in the
open market, $25 million, $12.5 million and $5 million,
respectively, of their outstanding common shares, if trading at a
discount to NAV in excess of 10%.
TYG and NTG are modifying their distribution policies to shift
to a NAV-based distribution. Distribution amounts will normally be
reviewed annually and are generally expected to fall in the range
of 5% to 7% of NAV. For example, TYG’s annualized distribution of
$1.20 represents 5.6% of its July 7, 2020, NAV of $21.31.
“The pivot to NAV-based distributions for TYG and NTG aligns
with the goal of maximizing NAV, and provides the portfolio
management team the flexibility to own investments with the most
compelling total return potential across a broader set of energy
infrastructure companies,” said Brad Adams, CEO of Tortoise’s
closed-end funds. “Net cash flow not distributed can be reinvested
in portfolio securities, used to fund share repurchases or to
redeem leverage. The share repurchases at a discount are in-line
with the goal of maximizing NAV, and will be accretive to per share
cash flow available for future distributions as well. Furthermore,
management and the Board will continue to consider strategic
options to enhance stockholder value in the long-term.”
The Board also affirmed leverage utilization for TYG, NTG and
TTP. Leverage as percent of total assets will vary depending on
market conditions, but will normally range between 20% and 30% of
total assets.
The Board will monitor the repurchase programs which includes
deciding whether or not to renew the repurchase programs at the end
of their terms. Repurchase activity, including the number of shares
purchased, the average purchase price and the average discount to
net asset value, will be disclosed in the funds' quarterly reports
to stockholders. The share purchase program will follow Rule 10b-18
requirements, and there is no assurance that the Funds will
repurchase shares in any amount.
For more information, a Q&A document is available here.
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 the
funds.
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/20200708005298/en/
Maggie Zastrow, (913) 981-1020 info@tortoiseadvisors.com
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