Tortoise Energy Capital Corp. Provides Net Asset Value Update; Announces Compliance With Its Coverage Covenants for Senior No...
13 Oktober 2008 - 3:15PM
Business Wire
Tortoise Energy Capital Corp. (NYSE: TYY) today announced that as
of the close of business on Friday, Oct. 10, 2008, the company�s
total assets were approximately $472 million and its net asset
value per share was $10.59. Friday�s last sale price was $7.00 per
share. The company also announced that it has not violated any
asset coverage covenants or basic maintenance covenants for its
senior notes. According to the terms of its senior notes, the asset
coverage covenants are calculated at the end of each month and the
basic maintenance coverage covenants are calculated as of the end
of each week. The company is not seeking any waiver or amendment at
this time to the terms of its senior notes, which aggregate $190
million of the company�s $285 million total leverage. However, as
of Friday, Oct. 10, 2008, the company was not in compliance with
its basic maintenance coverage ratios on its outstanding preferred
shares. Those coverage ratios must be met at the end of each week.
Under the terms of the preferred shares, the company has more than
50 days from any valuation date in which it did not comply with its
basic maintenance coverage ratios, absent a cure or waiver, before
it may be required to redeem an amount necessary to bring the
ratios into compliance. The company has contacted the holders of a
majority of each of its two series of outstanding preferred shares
and made them aware of the non-compliance. The company currently
has approximately $34,400,000 of cash and expected cash from
completed sales of securities. The company has no short-term
borrowings outstanding. Throughout this period of market unrest,
management has maintained a dialogue with its lenders, all of whom
are unsecured, to prudently manage its leverage and cash positions.
Under the terms of its agreements with senior note holders and
preferred stockholders, the company has nearly two months to remedy
or receive a waiver on any coverage covenant breach, allowing for
an orderly return to compliance. Terry Matlack, Chief Financial
Officer of the company indicated, �We are taking steps to comply
with our asset coverage ratios for the purposes of both the 1940
Act and the terms of our senior notes and preferred shares. We are
working diligently to preserve our ability to pay dividends to our
common stockholders.� On Tuesday, Oct. 14, 2008 at 3:30 p.m. CDT,
the company plans to host a teleconference to update its investors
on the U.S. mid-stream energy infrastructure industry in which it
invests. �In a period of tightening liquidity, we like investing in
the providers of essential services,� said Dave Schulte, President
of the company. �Major customers of long haul natural gas pipelines
include utilities and other companies that provide basic services.
The ability of the MLPs in our portfolio to continue to pay
increasing quarterly cash distributions is a direct result of the
resiliency of their business operations and the investor friendly
disciplines imbedded in their partnership agreements. Six of our
MLP holdings have announced distributions as of Friday, and all
have indicated distribution increases of between 1.5% to 3% over
the prior quarter.� Set forth below is a summary of the company�s
unaudited and preliminary balance sheet as of October 10, 2008, and
a summary of its top 10 holdings. Preliminary Balance Sheet
(Unaudited) Cash and Cash Equivalents 34,407,428 Investments
406,341,699 Deferred Tax Asset 30,100,649 Other Assets 856,083
Total Assets 471,705,859 � Short-Term Borrowings 0 Senior Notes
190,000,000 Preferred Stock 95,000,000 Total Leverage 285,000,000 �
Other Liabilities 1,705,693 Net Assets 185,000,166 17.47 million
common shares currently outstanding Top 10 Holdings (as of Oct. 10,
2008) Name Market Value � % of Investment Securities � � Kinder
Morgan Management, LLC $ 47,746,984 11.75 % Enterprise Products
Partners, L.P. $ 33,729,099 8.30 % Enbridge Energy Partners, L.P. $
31,148,983 7.67 % Plains All American Pipeline, L.P. $ 30,921,688
7.61 % Sunoco Logistics Partners, L.P. $ 24,395,053 6.00 % NuStar
Energy LP $ 21,762,005 5.36 % MarkWest Energy Partners, L.P. $
21,705,436 5.34 % Energy Transfer Partners, L.P. $ 20,230,383 4.98
% TC PipeLine, L.P. $ 19,585,995 4.82 % Crosstex Energy, L.P. $
17,466,595 � 4.30 % � Total $ 268,692,221 66.13 % Market Update
Call The company will host a conference call at 3:30 p.m. CDT on
Oct. 14, 2008 to discuss current U.S. mid-stream energy
infrastructure industry market conditions. Please dial-in
approximately five to 10 minutes prior to the scheduled start time.
U.S./Canada: (303) 262-2075 International: (800) 240-8621 The call
will also be webcast in a listen-only format. A link to the webcast
will be accessible at www.tortoiseadvisors.com. A replay of the
call will be available beginning at 6 p.m. CDT on Oct. 14, 2008 and
continuing until 11:59 p.m. CDT Nov. 10, 2008, by dialing (303)
590-3000 (U.S./Canada). The replay access code is 11121229#. A
replay of the webcast will also be available on the company's Web
site at www.tortoiseadvisors.com through Oct. 14, 2009. About
Tortoise Energy Capital Corp. Tortoise Energy Capital Corp.
provides financing for master limited partnerships (MLPs) in the
energy infrastructure sector, focusing on crude oil and refined
petroleum products MLPs and natural gas and natural gas liquids
pipelines MLPs. Tortoise Energy Capital Corp. seeks to provide its
stockholders a high level of total return with an emphasis on
current distributions. About Tortoise Capital Advisors Tortoise
Capital Advisors, LLC is a pioneer in capital markets for master
limited partnership (MLP) investment companies and a leader in
closed-end funds and separately managed accounts focused on MLPs in
the energy sector. As of Sept. 30, 2008, the adviser had
approximately $2.2 billion of assets under management. For more
information, visit our Web site 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.
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 company 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 funds�
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 company and Tortoise Capital
Advisors do not assume a duty to update this forward-looking
statement.
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