Distribution dates and amounts announced for TYG, NTG, TTP,
NDP, TPZ and TEAF
- TTP and NDP update following termination of proposed merger
- TTP increases and NDP reinstates quarterly distributions
- Both funds adopt a managed distribution policy
- Operating expenses capped through expense reimbursement
- TPZ adopts a managed distribution policy and increases
- TYG and NTG increase distributions for third consecutive
TortoiseEcofin and the Board of the closed-end funds announce
several actions to improve shareholder value for its closed-end
Tortoise Energy Infrastructure Corp. (NYSE: TYG) Tortoise
Midstream Energy Fund, Inc. (NYSE: NTG) Tortoise Pipeline &
Energy Fund, Inc. (NYSE: TTP) Tortoise Energy Independence Fund,
Inc. (NYSE: NDP) Tortoise Power and Energy Infrastructure Fund,
Inc. (NYSE: TPZ) Ecofin Sustainable and Social Impact Term Fund
TTP and NDP Status Update
Following the proposal to merge the two funds, management and
the Board concluded that TTP and NDP will remain separate funds,
each continuing to be managed under their existing strategies.
NDP invests primarily in North American energy companies that
engage in exploration and production of crude oil, natural gas and
related essential commodities, while TTP invests primarily in
pipeline companies that transport these products. The management
team and the Board maintain full conviction in the energy sector
and believe it will continue to be essential to our everyday needs.
They also believe that the companies in which the funds invest will
meaningfully contribute in the energy transition with new projects
and by repurposing existing assets to support cleaner energy
sources. Learn more from the portfolio managers in these short
videos: TTP, NDP.
The Board also approved an increase to TTP’s quarterly
distribution by 131.3% and to reinstate a quarterly distribution
for NDP. Additionally, TTP and NDP adopted managed distribution
policies resulting in a NAV-based distribution, similar to the
NAV-based distribution policies previously announced for TYG and
NTG. The annualized distribution rate will be reviewed on a
semi-annual basis in February and August each year and is expected
to equal at least 6% of the average NAV per share for the previous
fiscal semi-annual period.
NAV-based distributions align with the goal of maximizing NAV
and provides the portfolio management team the flexibility to own
investments with the most compelling total return potential. This
formulaic and disciplined approach decouples distribution decisions
from distributable cash flow and tracks NAV performance. Net cash
flow not distributed can be used to fund share repurchases,
reinvest in portfolio securities or reduce leverage.
Tortoise Capital Advisors, L.L.C., the adviser to TTP and NDP,
has voluntarily agreed, effective September 1, 2021, to reimburse
each fund for their Operating Expenses in order to ensure that
Operating Expenses do not exceed 1.35% of average daily managed
assets for each fund. In its sole discretion and at any time, the
funds’ adviser may elect to extend, terminate or modify its
temporary expense reimbursement upon written notice.
The Board approved the adoption of a managed distribution policy
and an increase of 20.0% to the monthly distribution for TPZ. The
annualized distribution rate will be reviewed on a semi-annual
basis in February and August each year and is expected to equal at
least 5% of the average NAV per share for the previous fiscal
TYG and NTG Distributions Increase
In line with the funds’ NAV-based distribution polices that were
introduced in July 2020 with the goal of maximizing NAV, the Board
approved an increase to TYG and NTG distributions for the third
consecutive quarter. TYG and NTG quarterly distributions for the
third fiscal quarter increased by 7.4% and 6.9%, respectively.
Distribution amounts are generally expected to fall in the range of
5% to 7% of trailing average NAV. Net cash flow not distributed can
be used to fund share repurchases, reinvest in portfolio securities
or reduce leverage.
TEAF will maintain its current distribution and the Board will
review once the fund achieves its long-term portfolio allocation
Distributions Amounts and Dates
Tortoise Energy Infrastructure Corp.
Tortoise Midstream Energy Fund, Inc.
Tortoise Pipeline & Energy Fund,
Tortoise Energy Independence Fund,
Tortoise Power and Energy Infrastructure
Ecofin Sustainable and Social Impact Term
TYG, NTG, TTP and NDP quarterly distributions are payable on
August 31, 2021 to shareholders of record on August 24, 2021. TPZ
is expected to continue to declare distributions monthly, with the
August distribution payable on August 31, 2021 to shareholders of
record on August 24, 2021. TEAF monthly distributions are payable
on September 30, 2021, October 29, 2021 and November 30, 2021 to
shareholders of record on the respective dates of September 23,
2021, October 22, 2021 and November 23, 2021.
For book purposes, the source of distributions for TYG and NTG
is estimated to be 100% return of capital, and the source of
distributions for NDP is estimated to be approximately 10 to 20%
ordinary income, with the remainder as return of capital and TEAF
is estimated to be approximately 90 to 100% 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
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.
Operating Expenses excludes taxes, leverage/borrowing costs,
interest expense, brokerage commissions, acquired fund fees and
expenses, expenses incurred in connection with any merger or
reorganization, or extraordinary expenses.
TortoiseEcofin focuses on essential assets – those assets and
services that are indispensable to the economy and society. We
strive to make a positive impact on clients and communities by
investing in energy infrastructure and the transition to cleaner
energy and by providing capital for social impact projects focused
on education and senior living. TortoiseEcofin brings together
strong legacies from Tortoise, with expertise investing across the
energy value chain for more than 20 years, and from Ecofin, which
unites ecology and finance and has roots back to the early 1990s.
For additional information, please visit
Tortoise Capital Advisors, L.L.C. (also dba TCA Advisors)
(“TCA”) is the adviser to Tortoise Energy Infrastructure Corp.,
Tortoise Midstream Energy Fund, Inc., Tortoise Pipeline &
Energy Fund, Inc., Tortoise Energy Independence Fund, Inc.,
Tortoise Power and Energy Infrastructure Fund, Inc. and Ecofin
Sustainable and Social Impact Term Fund. Ecofin Advisors Limited is
a sub-adviser to Ecofin Sustainable and Social Impact Term
For additional information on these funds, please visit
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
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 TCA 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 TCA do not assume a
duty to update this forward-looking statement.
version on businesswire.com: https://www.businesswire.com/news/home/20210809005838/en/
Maggie Zastrow, (913) 981-1020 firstname.lastname@example.org
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