Tortoise Capital Advisors, LLC, the adviser for Tortoise Energy
Infrastructure Corp., Tortoise Energy Capital Corp., Tortoise North
American Energy Corp, and Tortoise Capital Resources, Corp. (NYSE: TYG)
(NYSE: TYY) (NYSE: TYN) (NYSE: TTO), announced today all of its publicly
traded closed end funds have amended their credit facilities. TYG has
entered into a $70 million credit facility, TYY has entered into a $50
million credit facility and TYN has entered into a $10 million credit
facility. Each of these agreements will mature on June 20, 2010, and are
unsecured. TYG currently has $20.5 million outstanding on its credit
facility, while TYY and TYN currently have no borrowings on their
facilities.
Under the terms of these credit facilities, outstanding balances
generally will accrue interest at a variable rate equal to one-month
LIBOR plus 2.00 percent with a fee of 0.25 percent on any unused balance
of the facility. U.S. Bank, N.A. remains a lender and the lending
syndicate agent.
“We believe these facilities will meet our borrowing needs over the next
year, and expect to use the facility as needed for investments, general
working capital purposes and to partially refinance existing leverage,”
said Terry Matlack, Chief Financial Officer for the funds. “We continue
to expect to redeem all remaining 7- and 28-day auction rate securities
as soon as the capital markets provide a suitable longer term
alternative and when the leverage can be replaced in a manner that will
provide long term stockholder value, with a goal of completing these
redemptions by the end of the calendar year.”
TTO has entered into a 60-day extension of its amended credit facility
through Aug. 20, 2009. The terms of the extension provide for a secured
revolving credit facility of up to $11.7 million. TTO has $11.7 million
outstanding on its credit facility, net of anticipated paydowns as a
result of completed portfolio sales. The amended credit facility retains
the provision requiring TTO to apply 100 percent of the proceeds from
any private investment liquidation and 50 percent of the proceeds from
the sale of any publicly traded portfolio assets to the outstanding
balance of the facility.
During the extension, outstanding loan balances generally will accrue
interest at a variable rate equal to the greater of (i) one-month LIBOR
plus 3.00 percent, and (ii) 5.50 percent, with a fee of 0.50 percent on
any unused balance of the facility.
“We reduced the TTO outstanding credit facility balance by selling some
of our public investments,” said Mr. Matlack. “We will continue our
active discussions with our existing and prospective lenders with the
goal of entering into a new longer term credit facility by Aug. 20,
2009.”
Tortoise Capital Advisors, LLC is a pioneer in capital markets
for MLP investment companies and a leader in closed-end funds and
separately managed accounts focused on MLPs in the energy sector. As of
May 31, 2009, the Adviser had approximately $2.0 billion of assets under
management.
Safe Harbor Statement
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy, nor shall there be any sale of, the
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.
Tortoise Capital Advisors, LLC
Pam Kearney, 866-362-9331
Investor
Relations
pkearney@tortoiseadvisors.com
