LEAWOOD, KS--(BUSINESS WIRE)--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 |
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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) |
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Investments |
$312.1 |
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Cash and Cash Equivalents |
55.1 |
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Deferred Tax Asset |
41.2 |
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Other Assets |
3.4 |
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Total Assets |
411.8 |
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|
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Senior Notes |
96.8 |
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Preferred Stock |
32.3 |
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Total Leverage |
129.1 |
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|
|
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Other Liabilities |
2.2 |
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Current Tax Liability |
69.1 |
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Net Assets |
$ 211.4 |
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Tortoise Midstream Energy Fund, Inc. (NYSE: NTG)
Leverage summary:
Total leverage outstanding |
$50,900,000 |
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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 |
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Cash and Cash Equivalents |
13.1 |
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Other Assets |
1.6 |
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Total Assets |
185.5 |
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|
|
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Senior Notes |
38.2 |
||||||
Preferred Stock |
12.7 |
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Total Leverage |
50.9 |
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|
|
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Other Liabilities |
1.0 |
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Current Tax Liability |
41.5 |
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Net Assets |
$92.1 |
Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP)
Leverage summary:
Total leverage outstanding |
$24,500,000 |
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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 |
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Cash and Cash Equivalents |
8.3 |
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Other Assets |
0.6 |
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Total Assets |
65.5 |
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|
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Senior Notes |
18.4 |
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Preferred Stock |
6.1 |
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Total Leverage |
24.5 |
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|
|
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Other Liabilities |
0.4 |
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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.