Tortoise Energy Capital Corp. Announces Distribution Decrease
12 Februar 2009 - 10:13PM
Business Wire
The Board of Directors of Tortoise Energy Capital Corp. (NYSE:
TYY) today declared the company�s first quarter 2009 distribution
of $0.40 per share, a decrease of $0.03 or 7.0 percent as compared
to last quarter. The distribution represents an estimated 90
percent of distributable cash flow for the quarter and will be paid
on Mar. 2, 2009 to stockholders of record on Feb. 23, 2009.
�Last quarter, in order to comply with coverage ratios under our
leverage agreements and the Investment Company Act of 1940, we sold
MLP investments and reduced leverage, slightly decreasing our
estimate of longer-term distributable cash flow,� said Tortoise
Energy Capital Corp.�s President and Chief Executive Officer, David
Schulte. �While our payout ratio of 90 percent of distributable
cash flow this quarter is below our target of 95 percent, we
believe a more conservative payout is warranted based on our
current leverage position. Based upon our current expectations, we
believe our portfolio companies will continue to pay us
distributions which will allow quarterly distributions to our
stockholders of not less than $0.38 during fiscal year 2009. While
we expect the next year to be challenging for almost every
industry, including the energy infrastructure sector, we continue
to believe the flow of energy commodities remains critical to our
economy and that the long term prospects for MLP investments are
attractive,� added Mr. Schulte.
For more information regarding financial performance and
perspectives on market conditions impacting the MLP sector, please
review TYY�s 2008 annual report available on the company�s Web site
at www.tortoiseadvisors.com.
Expected Treatment of Distribution
A portion of this distribution is expected to be treated as
return of capital for income tax purposes, although the ultimate
determination will not be made until determination of our earnings
and profits after our year-end. Based on current financial
information, this distribution is estimated to consist of 100
percent return of capital for book purposes.
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. The company
invests in companies operating energy infrastructure assets that
are critical to the U.S. economy.
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 Jan. 31, 2009, the adviser had
approximately $1.7 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. Any distribution paid in the
future to our stockholders will depend on the actual performance of
the company�s investments, its costs of leverage and other
operating expenses and will be subject to the approval of the
company�s Board and compliance with asset coverage requirements of
the Investment Company Act of 1940 and the leverage covenants.
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