Health & Fitness
Wed, November 16, 2011
LEAWOOD, Kan.--([ BUSINESS WIRE ])--Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP) today announced it has finalized the terms of a private placement with institutional investors of $49 million of senior unsecured notes (Senior Notes) and $16 million of Mandatory Redeemable Preferred Shares (MRP Shares).
"This private placement provides a laddered maturity of primarily fixed rate financing resulting in more predictable leverage costs and manageable refinancing in any given year"
An initial funding of $24.5 million of Senior Notes and $8 million of MRP Shares occurred today with the remaining to be funded no later than Dec. 15, 2011. The proceeds from the offerings will be used primarily for making new portfolio investments, reducing outstanding borrowings under the credit facility and for general corporate purposes.
"This private placement provides a laddered maturity of primarily fixed rate financing resulting in more predictable leverage costs and manageable refinancing in any given year,a said Tortoise Pipeline & Energy Fundas Chief Financial Officer, Brad Adams.
The Senior Notes and MRP Shares details are noted in the tables below:
Senior Notes |
Total | Fixed |
Maturity Date | |||||||||||
| Series A | $ 10,000,000 | ** | 12/15/2016 | |||||||||||
| Series B | $ 17,000,000 | 2.50% | 12/15/2014 | |||||||||||
| Series C | $ 6,000,000 | 3.49% | 12/15/2018 | |||||||||||
| Series D | $ 16,000,000 | 4.08% | 12/15/2021 | |||||||||||
| Total | $ 49,000,000 |
** Floating Rate (3 month LIBOR plus 1.75%). Initial rate is 2.20%.
MRP Shares | Total | Distribution | Redemption | |||||||||||
| Series A | $ 16,000,000 | 4.29% | 12/15/2018 | |||||||||||
About Tortoise Pipeline & Energy Fund
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 focuses primarily in pipeline companies that engage in the business of transporting natural gas, natural gas liquids, crude oil and refined products and to a lesser extent, on other energy infrastructure companies.
About Tortoise Capital Advisors, LLC
Tortoise Capital Advisorsis an investment manager specializing in listed energy infrastructure investments. As of Oct. 31, 2011, the adviser had approximately $7.2 billion of assets under management in NYSE-listed closed-end investment companies, an open-end fund and other accounts.
Forward-Looking Statement
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 Fund and Tortoise 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 Fund and Tortoise do not assume a duty to update any forward-looking statement.
