Tortoise Energy Capital Corp. Completes $70 Million Offering of Preferred Shares
01 Februar 2006 - 1:10AM
Business Wire
Tortoise Energy Capital Corp. (NYSE:TYY) today announced it has
successfully completed an offering of Series I Money Market
Cumulative Preferred Shares (MMP Shares) raising a total of $70
million before fees and expenses of the transaction. The MMP Shares
are rated "Aa2" and "AA" by Moody's Investor Services, Inc. and
Fitch Ratings, respectively. Lehman Brothers Inc. acted as book
running manager and A.G. Edwards & Sons, Inc., Oppenheimer
& Co. Inc., Stifel, Nicolaus & Company, Incorporated and
Wachovia Capital Markets, LLC also participated as underwriters for
the offering. MMP Shares may only be bought or sold through an
auction or in a secondary market maintained by certain
broker-dealers. There is no assurance that such market will be
maintained. Following the issuance of the Series I MMP Shares, the
total assets of Tortoise Energy Capital Corp. are approximately
$575 million. The issuance of the MMP Shares completes the
Company's initial leverage plans. The Company intends to use the
net proceeds of the offering to fully repay all outstanding
indebtedness under the Company's revolving credit facility and will
invest the proceeds in accordance with its investment objectives
and policies. Additionally, Tortoise Energy Capital has entered
into swap agreements with respect to $40 million of the MMP Shares
which fix the borrowing costs of $20 million through 2013, and the
remainder through 2018. The weighted average borrowing cost is
approximately 5.2 percent including marketing fees. The company
utilizes interest rate swaps to fix its leverage cost. This has the
benefit of eliminating the potential impact of increasing
short-term interest rates during the swap term. These swap
agreements are in addition to the swap agreements already in place
for the Company's $120 million of Series A & B Auction Rate
Senior Notes. Further, the Company intends to enter into additional
swap agreements in order to fix its borrowing costs for the
remainder of the Tortoise MMP Shares, effectively fixing the
borrowing costs on all debt and preferred stock. About Tortoise
Energy Capital Tortoise Energy Capital Corp. provides financing
primarily for master limited partnerships in the energy
infrastructure sector. Tortoise Energy Capital's goal is to provide
its shareholders with a high level of total return with an emphasis
on current distributions to stockholders. About Tortoise Capital
Advisors Tortoise Capital Advisors, LLC, the adviser to Tortoise
Energy Capital Corp., is a pioneer in capital markets for
investment companies and separately managed accounts focused on
MLPs in the energy infrastructure sector. Tortoise Capital Advisors
also serves as the adviser to Tortoise Energy Infrastructure Corp.
(NYSE:TYG) and Tortoise North American Energy Corp (NYSE:TYN). To
date, the adviser has approximately $1.5 billion of energy
infrastructure investment assets under management. For more
information, visit our website at www.tortoiseadvisors.com. 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.
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